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Stay in Your Home

Published On: August 25, 2010


 

Last time we talked about just a few of the options that would allow you to work out your financial situation and retain your home.  These options, mind you, were the least destructive to your credit and are the most favorable options if you qualify for them.  However, you do not qualify for refinancing or repayment there is still hope and it lies in these next few options which take a litte bit more of a toll on your credit but they do help you keep your home and that is the goal we're shooting for with these plans.

The first option we'd like to talk about today is Forebearance.  This method is the most effective when being used for short-term payment relief including reduced income or temporary job loss.  What
Forebearance is is an agreement between you and your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a set amout of time.  This allows you to take care of
your financial problems and bring your mortgage back current.  Of course the money that wasn't paid during the Forebearance must be paid back and there are also a few ways you can do this.  First, you can move the payments to the end of your mortgage thus lengthening the term of your mortgage, this is one way you can repay the money.  Second, you can always pay it off in a one time payment but depending on the length of the Forebearance this can be tough. 
Third, you can add a specific amount to your current monthly payment and pay it off similar to a repayment plan.

While Forebearance was a more agreeable option when you are facing a short-term hardship, there is also an option that is more well suited for long-term hardships and that one is called Modification. 
This option allows you to reach and agreement with your mortgage company to modify the original terms of the mortgage.  This may include lowering your monthly payment, lowering your interest rate or even increasing the length of the loan.  This can be helpful to giving you a new start and resolving the delinquency status you have with your mortgage company, though beware it will damage your credit, however not as much as a Foreclosure.

That will wrap up today's discussion.  Hopefully you are now well educated in the options allowing you to resolve your financial woes and retain your home.  Next time we wil be discussing options in leaving your home while still avoiding Foreclosure.  And remember if you or someone you know is trying to buy or sell a home we're waiting to hear from you!  Call us at (951)652-0645 or (951)925-7628

Sincerely,

Century 21 McDaniel & Associates

The REO, Bank Owned, Foreclosure and Short Sale Experts!