Don’t wait until you fall behind to seek help. Acting quickly may help you keep your home and the money you have already invested into it.
Repayment Plan: If you can’t afford reinstatement, but can start making payments to catch up, the lender may let you pay an additional amount each month until you are caught up.
Loan Modification: Your lender may agree to amend your mortgage.
The options include:
» Adding all the missed payments to the loan amount & increasing the monthly payment to cover the larger loan.
» Giving you more years to pay off the loan, lowering the interest rate, and/or forgiving part of the loan, to lower your monthly payment.
» Switching from an adjustable rate mortgage to a fixed rate mortgage, so you aren’t exposed to increases in your monthly payment.
» Requiring amounts for taxes and insurance to be included with your monthly mortgage payment so you avoid big bills in addition to your mortgage.