5 Strategies to Stop Foreclosure

5 Strategies to Stop Foreclosure

Did you recently lose your job or get laid off? Have you been struggling to make your house or mortgage payments? Maybe you have received a notice of foreclosure if you don’t take immediate action.

Special Forbearance:

When you qualify for Special forbearance you will be able to work with your lender or servicer to temporarily suspend or reduce your mortgage payment for a specific period of time.  Keep in mind, the full amount is still due and at the end of the forbearance period and if payment cannot be made, other arrangements will need to be made.

Repayment Plan: 

This is often available as well. An arrangement can be made that gives you a fixed amount of time to come back into balance. However, you usually will have to pay a little more than your normal payment amount to catch up on missed payments.  If all payments are made on time and as agreed – this will stop the foreclosure of your home.

Loan Modification:

This is not something that should be a last minute save option, but it can be if it is absolutely necessary. This works best if the lender is restricted from dual tracking. However, if your loan modification is approved, the foreclosure will be permanently stopped, as long as you continue to make modified payments. According to our servicer’s website:  “A loan modification is a permanent written agreement between you and your lender that changes one or more of the original terms of the loan such as the interest rate, monthly payment, maturity date, or principal balance. This is determined after thoroughly reviewing your financial information.” This option allows you to bring your account current and prevent your home from going to foreclosure sale.

Government Aid:

The Obama administration has created a number of new programs to help the American people avoid foreclosure. Which of these programs is the best for you? Let’s find out.

  • HAMP – Home Affordable Modification Program – HAMP aims to lower your mortgage payment to 31% of your gross monthly income. Homeowners report an average of 40% decrease in mortgage payments with as many as 18% saving at least $1,000 each month.
  • Principal Reduction Alternative – This relief program was built specifically to help those whose homes are worth a lot less than they owe. It encourages lenders to reduce the amount of debt still owed on the home.
  • FHA Special Forbearance – Available to only the unemployed or those with no source of income, this special program works by offering a temporary reduction or suspension of a mortgage. This type of forbearance can last up to 12 months.
  • Other Foreclosure Alternatives – If foreclosure seems imminent because you cannot find a way to make payments, you have other option. Short sale or deed-in-lieu of foreclosure through HAFA SM.
  • Redemption – Your last hope is to be able to redeem the sale of your home — post-foreclosure. To do this, you will need to pay the remaining balance owed on your mortgage as well as any additional fees incurred during the foreclosure process.

Federal Housing Administration:

If you are a homeowner with an insurance policy from FHA there are a lot of informational resources to help you. FHA also have staff available to assist you if you are facing financial hardship or unemployment. There are also those who can contact lenders and negotiate on your behalf.

“If you’re facing financial challenges, RoundPoint will do everything they can to help you and your family. They’ll guide you through the mortgage assistance process and help you explore all available options.”   – RoundPoint

For more information on getting help visit: Workout Options in the “FAQ”  or follow the link for Mortgage Assistance

 

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