Freddie Mac has published a resource on how to avoid foreclosure: Freddie Mac: Avoiding Foreclosure .
In it, there are some possible options that lenders may give you to work out a way to avoid selling your property..Â Some typical options:
Depending upon your situation, your mortgage company may be able to provide you with temporary financial relief. Here are a number of alternatives to discuss with your mortgage company.
- Forbearance is an agreement to temporarily let you pay less than the full amount of your mortgage payment, or pay nothing at all, during the forbearance period. Mortgage companies may consider forbearance when you can show that funds from a bonus, tax refund, or other source will let you bring the mortgage current at a specific time in the future.
- A reinstatement occurs when you pay your mortgage company the total amount you are behind, in a lump sum, by a specific date. This is often combined with forbearance.
- A repayment plan is an agreement that gives you a fixed amount of time to repay the amount you are behind by combining a portion of what is past due with your regular monthly payment. At the end of the repayment period you have gradually paid back the amount of your mortgage that was delinquent.
- A loan modification is a written agreement between you and your mortgage company that permanently changes one or more of the original terms of your note to make the payments more affordable. Common loan modifications include
- Adding missed payments to the existing loan balance
- Making an adjustable-rate mortgage into a fixed-rate mortgage
- Extending the number of years you have to repay
No matter what your situation is, it’s important early in the process to try and work with your lender before they send it to an attorney and jack up the late fees thousands of dollars.
If you decide you want to sell your house quickly instead of working with your lender, we are here to help you.Â Give us a call at 804/719-1489, or get your offers from us in 24 hours.