A mortgage modification involves the reduction of
one of the following: the interest rate on the loan,
the principal balance of the loan, the term of the
loan, or any combination of these.
A reinstatement is the simplest solution for a foreclosure,
but often the most difficult to achieve. The homeowner
simply pays the total amount past due (including late
fees) to the lender.
Deed in Lieu of Foreclosure
Also known as a friendly foreclosure,
a deed-in-lieu allows the homeowner to return the
property to the lender rather than go through the
A forbearance or repayment plan involves the homeowner
negotiating with the mortgage company to allow them
to repay back-payments over a period of time.
Rent the property
This option requires the homeowners ability
to rent the house for enough money to cover the monthly
If a member of the military experiences financial
distress due to deploymentand their debt was
entered into prior to deploymenthe or she may
qualify for relief under the
Servicemembers Civil Relief Act.
Many believe bankruptcy is a foreclosure solution,
but this is only true in some states and situations.
Entering bankruptcy can be a risky and costly process.
Be sure to seek the advice of a qualified bankruptcy
attorney when pursuing this as an option.
Refinancing means you will acquire a new loan based
on your current credit standing. If you have already
missed mortgage payments, your credit score may make
it difficult to find a loan with cheaper payments.
Now that you know about the alternatives
to foreclosure, you have the power to act!
Whether youre struggling with
the mortgage today or are months behind on payments,
its important to choose an option that best
suits your needs and get to work. The fact that you
are reading this report is a great start!
The following are steps you can take if you are delinquent,
or on the verge of missing a mortgage payment.