Falling behind on your mortgage is often the product of unforeseen and difficult circumstances. Perhaps you’ve lost your job or required medical procedures. Whatever might be standing in your way of making your mortgage payments, we understand your situation’s hardship. However, there are steps you can take to recover and avoid foreclosure. In whichever stage of foreclosure you face, there is a solution for you. Do not lose hope!
Let’s take a look at each step in the process, beginning with a lag in your payments to the final threat of foreclosure. Wherever you may find yourself, learn how you can recover and how we at JP Solution can offer help.
If in the instance of facing unanticipated challenges, you fail to make your mortgage payments on time, you will receive the first notice from your lender. This letter will inform you of what you are likely already aware and will warn of the possibility of foreclosure. Know that in this stage, you have an excellent opportunity to recover! Your lender hopes to avoid foreclosure, just as much as you. For them, it is an expensive and lengthy process, and they will work with you to sidestep this dreaded possibility. Simply call your lender, and they will work with you to comprise a recovery plan.
Catching Up
If instead, you leave this first letter ignored, another one will be sent. This second notice will inform you that foreclosure has been initiated and scheduled. But even at this stage, such a foreboding message does not signify complete hopelessness. At this point, you should contact your lender and find a way to catch up on your payments. There are a couple of ways to do this:
- A repayment plan- With this plan, you will pay your regular monthly mortgage with an additional amount that will gradually get you caught up on your missed payments. For example, if you normally pay $1,000, with this plan, you might pay $1,200 over a period of time to return what you owe.
- Reinstatement and Forbearance- Forbearance is a plan in which your lender will reduce your mortgage payments with the agreement that you will make a reinstatement, or a large sum of money, at a later time.
If your situation is a temporary one- perhaps you’ve lost your job but will soon acquire another- a payment plan is right for you. Call your lender, and they will be willing to work with you!
You Still Have Options
These solutions are only applicable in the case that the stagnation of your payments is temporary. If you can no longer afford your mortgage, there are still options for you to avoid foreclosure. These typically involve either selling your home or modifying the loan in some way.
- Mortgage Modification- This indicates that the lender reshapes the loan in some way so that it is more affordable for the homeowner. They will either modify their interest rate or reduce the amount of the payments. This might be a permanent or temporary loan restructuring.
- Refinancing- This will be beneficial in reducing your interest rate. So, if you are able, you can refinance to reduce your monthly payments. This is only possible, however, if you have a certain amount of equity.
- Selling your home- With the short sell strategy, a homeowner can avoid the long and stressful process of foreclosure. This will involve their lender, allowing them to sell the home for less than what they owe in mortgage. The approach will cause the house to sell quickly and rid the owner of their foreclosure concerns.
While there are several options for you, we understand that these circumstances may be overwhelming. Your inability to pay your mortgage payments might be a compounding factor of an even larger hardship in your life. That’s why we’d like to offer you hope. If you find yourself in a situation in which you cannot make these payments, contact the JP Solution for assistance. We have extensive experience in assisting people just like you, in similar situations. You are not alone, and we are here to help. Do not hesitate to contact us today!
