Protect Your Home From Foreclosure - Know what options are available to you so that you can choose the best forbearance solutions for your situation.
What are the forbearance alternatives for homeowners after September 30, 2021? Homeowners, if after September 30, 2021, you are still experiencing financial hardship, here are some alternatives that may be available for you:
Mortgage Relief: These programs are intended to help address missed payments during forbearance and potentially make your monthly mortgage payment more affordable.
These may include:
- Payment deferral - Deferring your missed mortgage payments, so your mortgage payments you owe are not due until your loan is paid off your loan, refinance, or when you sell your home.
- Loan modification, which would permanently change the terms of your loan. A loan modification is an agreement between you and your mortgage service to modify the terms of your loan to accommodate the missed payments during forbearance and adjust the new payment amount to make it affordable. A loan modification might be suitable for homeowners who can no longer afford their regular mortgage payment due to permanent changes in their financial situation, such as long-term job loss or illness.
- State Mortgage Assistance: You may be eligible for mortgage payment assistance from your state. Many states offer programs designed to help homeowners struggling with COVID-19 hardships to bring their past-due mortgage payments current and resume making their monthly payments.
Check out your mortgage servicer website for relief-and-assistance contact information for each participating state.
If none of the alternatives mentioned above work for you, then you may have to consider:
- Sell your home: With the high demand for housing, low inventory, and multiple offers. On average, sellers in some markets are received up to 110% of their asking price. Therefore, most homeowners across the country have equity right now, which means the property is worth more than what they owed. If that may be the case for you selling your home and using some of its proceeds to buy another home will allow a fresh start with a more affordable house.
- Short Sale: Even if you don't have equity in your home, you may qualify for a short sale, which is where you sell your property for fair market value that may be less than the total mortgage balance you owe on your mortgage. Any remaining balance you owe on the mortgage won't have to reimburse in most cases, which gives you the opportunity of a fresh start. Also you may be eligible to receive cash to assist you with moving expenses. If you want to move forward with the sale of your property, you or your real estate agent can contact your lender(s) to let them know after listing your property for sale and receiving an offer to purchase your property.
If you want your real estate agent to contact your lender, then an authorization letter signed by all parties whose names appear on the loan is require to be able to obtain consent to talk to your lenders on your behalf. You and your realtor (Real estate agent) will work with the mortgage lender throughout the process to ensure its success.
If you still require forbearance assistance after 09/30/2021, please call your mortgage servicer to discuss this option, as it is necessary to get approval from the owner or insurer of your loan.