Sometimes even the most responsible of homeowners can fall on hard financial times. It only takes a job loss, a serious illness or any other financial calamity that causes a homeowner to fall behind on their mortgage payments. This can be incredibly distressing, particularly if a homeowner is facing the threat of losing their home to foreclosure. However, homeowners in Tyler should know that there may be some alternatives to foreclosure that may be worth looking into.
First of all, lenders may agree to a special forbearance. This means that the homeowner may be relieved of their duty to make mortgage payments temporarily. If that is not agreeable to the lender, the lender may alternatively agree to a temporary change in the homeowner’s repayment plan, based on the homeowner’s specific circumstances and a showing of their ability to make payments under the new plan.
Second, a homeowner might seek a mortgage modification. This means that either the mortgage would be refinanced, or the length of time that the homeowner has to pay off the mortgage may be extended, resulting in lower monthly payments. Usually to qualify for a mortgage modification, the homeowner must have recovered financially in a way that allows them to afford their new mortgage payments.
Another option might be a partial claim. This is a one-time payment stemming from the Federal Housing Administration insurance fund. This payment should be large enough to allow the homeowner to become current on their mortgage. This might be an option for homeowners who, after this payment is made, will be able to meet their normal mortgage obligations.
Finally, homeowners should keep in mind that filing for Chapter 13 bankruptcy will put a halt to foreclosure proceedings. While everyone’s case is different, sometimes a person is able to work out a Chapter 13 repayment plan that allows them to catch up on missed mortgage payments, while still staying current on their loan. In this way, a person’s house might be saved from foreclosure.
These are only some alternatives to foreclosure. While this post cannot guarantee any specific results when it comes to saving a home from foreclosure, it is important to keep in mind that just because a person is facing foreclosure doesn’t mean all hope is lost. An attorney can assess a homeowner’s case, to determine if there are any alternatives to foreclosure worth pursuing.
Source: FindLaw, “Alternatives to Foreclosure,” Accessed Aug. 21, 2017