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Finding an alternative to foreclosure

On Behalf of | Jan 24, 2020 | Real Estate Transactions

Many people who are worried about losing their home to foreclosure want to find an alternative that will help them solve their financial issues. The good news is that there are many alternatives to foreclosure. In the vast majority of situations, taking early action to address the foreclosure proceedings can make it possible for people to find a more favorable option.

However, unfortunately, some people wait too long to address their financial issues and to communicate with their lenders. The following are some of the most common alternatives to foreclosure that you should consider if you are worried about not being able to make mortgage repayments.

Mortgage modification

Dealing with the loss of a job or unexpected bills may mean that you are temporarily unable to meet your mortgage repayments. If this is the case, you should speak to your lender and ask whether it is possible to adjust your mortgage. By doing so, you may be able to reduce your monthly repayments.

Making a partial claim

The FHA-Insurance fund may be able to grant you a one-time payment to help you catch up with your missed payments. This is a good option if you can now afford to start paying your mortgage as normal.

Gaining a special forbearance

If you are going through issues that are affecting your finances temporarily such as a job loss, a bereavement or medical bills, your lender may grant you a special forbearance. This will mean that you do not have to make mortgage repayments for a certain number of months.

If you are worried that your current financial issues may lead to foreclosure, you should take immediate action to address the situation. An attorney can help you understand your options.