Options to Stay in Your Home
If you’re struggling to make your mortgage payments due to a short- or long-term financial hardship, there are options to help you stay in your home. Reach out to your lender as soon as possible. They’ll work with you to find a solution that fits your situation.
If you’re facing a short-term financial set-back, a forbearance can provide you with a temporary reduction or suspension of your mortgage payments until you get back on your feet. This option is most often combined with a reinstatement or repayment plan to make up for missed payments.
Unemployment is a difficult reality that many homeowners face. If you’re facing financial hardship due to unemployment, this mortgage relief option can help you stay in your home for a period of up to 6 months, which may be extended up to 12, if you are eligible.
A reinstatement allows you to make a lump sum payment by a specific date to pay the entire amount you’re behind on your mortgage. Typically combined with forbearance, a reinstatement is a good option when you can show your lender that funds will become available soon.
If you’ve missed a few mortgage payments due to a temporary hardship, a repayment plan can help you catch up and get back on track. A repayment plan allows you to spread out your past due amount by adding a portion of the payments you’ve missed to your current payments so you can pay for the full delinquency over a specific period of time.
With a loan modification, your lender may be able to restructure your mortgage, likely resulting in a lower payment, by adding missed payments to your mortgage, adjusting your interest rate, or even extending the number of years you have to repay.