WHAT ARE YOUR OPTIONS IF YOU’VE FALLEN BEHIND ON YOUR MORTGAGE PAYMENTS?

Among other options, your mortgage servicer may consider the following programs to assist you:

  • Reinstatement

Your mortgage servicer will accept a payment remitted by you that covers all past due amounts. Depending on the severity of your delinquency, your payment may be required to be in certified funds.

Contact your mortgage servicer for an itemization of all past due amounts. If you don’t have enough funds to pay all past due amounts, there are other programs available to assist you.

  • Repayment Plan

If you are unable to pay all past due amounts, your mortgage servicer may design a plan that allows you to catch up on your payments over a specified time period. To qualify for a repayment plan, you must be able to pay your regular monthly payment and an “extra” amount. The “extra” amount will be used to catch up on the past due amount. Contact your mortgage servicer to discuss a repayment plan.

  • Modification

If you are unable to afford a Repayment Plan, you may qualify for a modification of your mortgage terms. Your monthly mortgage payment may be reduced by a lower interest rate and/or an extended repayment term. A modification may also resolve your delinquency by adding past due amounts to your mortgage balance. Your mortgage servicer may have very flexible modification guidelines to resolve your unique situation. Please contact your mortgage servicer to discuss a modification.

  • Short Sale

If you cannot afford your mortgage payments and no longer want to keep your property, you could consider selling the property to avoid a foreclosure. Meet with a local, reputable real estate specialist (Realtor) to discuss the value of your property, the probable final sale price, and the net proceeds you can expect to receive. If the anticipated net proceeds from the sale of your property are going to be less than your total mortgage balance (including past due amounts), you may qualify for a short sale program (also known as a pre-foreclosure sale). Depending on your situation, the shortfall from the sale may be forgiven. In some cases, you may be required to repay all or a portion of the shortfall via an unsecured promissory note.

Your mortgage servicer may require certain documentation to consider a short sale. Please contact your mortgage servicer to discuss a short sale.

  • Deed in Lieu of Foreclosure

If you cannot afford your mortgage payments and are unable to sell your property, you may qualify for a deed in lieu of foreclosure. A deed in lieu of foreclosure means you voluntarily convey title to your property to your mortgage lender. Generally, you must have no junior liens (second mortgages, for example) on your property to be eligible for a deed in lieu of foreclosure.

Depending on your situation, the anticipated loss that results from a deed in lieu may be forgiven. In some cases you may be required to repay all or a portion of the anticipated loss via unsecured promissory note. Contact your mortgage servicer to discuss a deed in lieu of foreclosure.