Tips for Avoiding Foreclosure
Apply with an organization that offers financial assistance to those struggling to make their mortgage payments. Some individuals might be eligible to refinance their home or receive a loan modication; borrowers may be able to receive a lower monthly mortgage payment. Other organizations might offer grants or loans to assist homeowners.
Buy and Sell Real Estate Without Paying a Broker!
Tip 1: Consider a HomeSaver loan. Homeowners who possess a FannieMae loan might be eligible for an unsecured loan. Homeowners must be two months behind on their mortgage and meet any other requirements. The HomeSaver loan is designed to offer a low interest rate and low payment for a term of 15 years.
Tip 2: Apply for the Making Home Affordable refinancing program. The mortgage loan must be a Fannie Mae or Freddie Mac loan and the current amount of the mortgage can’t exceed 125% of the property’s value. Applicants must also demonstrate the ability to repay the mortgage loan and that the new mortgage is beneficial. Other requirements might apply. Those interested can find out more information at by visiting the references at the end this article.
Tip 3: Consider a mortgage loan modification. Homeowners who occupy their 1-4 unit dwelling might be eligible for a loan modification through the Making Home Affordable loan modification program. Homeowners who are facing financial hardship may apply if they acquired their current mortgage prior to January 1, 2009 and their mortgage payment exceeds over 31% of the homeowner’s gross monthly pay. Other requirements might apply. Potential applicants can learn more under the references section of this article.
Tip 4: Negotiate a repayment agreement or forbearance. Whether or not a mortgage servicer or private party services the loan, a repayment plan or forbearance is generally an option. Any delinquent payments might be able to be paid over a period of time. For example, to pay off several months of delinquent mortgage payments, homeowners could enter into an agreement to pay off that amount in payments of $200 per month. Others might choose to enter into a forbearance agreement, where the lender might defer mortgage payments for a specific amount of time.
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By Kimberly Hodgkins, Senior Editor and Writer
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