SHORT SALE. Also known as "pre-foreclosure sale." This option gives the homeowner some time to be able to sell the property to try to avoid foreclosure. If a buyer is found, but the sale price agreed to will not pay the mortgage balance in full, some mortgage companies agree to accept less than
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08/29/2008
CHAPTER 13 BANKRUPTCY . You may be able to keep your home if you file for Chapter 13 Bankruptcy Protection. You must be able to afford the payments. In situations where you do not want to keep the home, the following alternatives may be available to you. These options will affect your credit rat
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08/29/2008
REAMORTIZATION. When a loan is reamortized, the delinquency is added to the loan balance in order to bring your payments up to date. This increases your loan amount and will also increase your monthly payments. The amount of the payment increase will not be as great if the life of your loan is
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08/29/2008
LOAN MODIFICATIONS You may be able to refinance the debt and/or extend the term of your mortgage loan with your mortgage company. Your mortgage company may agree to a loan modification if you have recovered from a financial problem and can afford the new payment amount. Such modifications can be
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08/29/2008
PAYMENT ASSISTANCE. Some state and local governments and charitable organizations offer programs that will pay part or all of your mortgage for a limited amount of time. Call your church, your city, village, county and state government offices to ask for assistance. If they do not offer a prog
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08/29/2008
FORBEARANCE PLAN. This option may provide for a temporary reduction or suspension of payments. The payment amount will be increased at a later time to repay the delinquent amount. Forbearance is available if you have a VA loan and may be available for other types of loans. If the reason you hav
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08/29/2008
PARTIAL CLAIM. This alternative may work if the reason you fell behind on your mortgage payments was temporary. If your loan is an FHA insured loan, your lender may be able to obtain a one-time payment from the FHA Insurance Fund to bring your mortgage loan current with payments. You may qualify
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08/29/2008
REPAYMENT PLAN. Your mortgage company may agree to set a schedule of payments to allow you to catch up on delinquent payments. This usually involves making a full regular monthly payment plus paying a little extra each month to repay the delinquent amount over a specified period of time. A repa
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08/29/2008
REINSTATEMENT. If you can pay the total outstanding amount owed to the mortgage company, you can continue on with the mortgage with no changes to the terms. Illinois law allows a one-time opportunity to reinstate the mortgage before the foreclosure judgment is rendered. The payment amount and t
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08/29/2008
REFINANCE. This option allows you to use the equity you have in your home to pay the delinquent amount by obtaining a new loan. Depending on the interest rate of the new loan, your monthly payments might be reduced. You can explore refinancing with your existing mortgage company as well as with
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08/29/2008
