A loss of a job,death in family, medical expenses and other life-altering situations can happen to anyone, causing us to fall behind in our mortgage loan payments. If we neglect paying our

credit cards it hurts our credit rating; if we neglect our home loan payments the lender will foreclose, and repossess our home.
We are often embarrassed to talk about our money problems, but that approach doesn't solve anything. Put your pride on hold and get serious about avoiding
foreclosure.Contact your lender as soon as you know your payments will be late. Never ignore the lender's letters and do not assume you are in a hopeless situation. Lenders do not want to foreclose, and will usually work with you to get your account back on track.

Below are Solutions for Temporary Problems

1.Reinstatement
When you are behind in your payments but can promise a lump sum to bring payments current by a specific date.

2.Forbearance
You are allowed to delay payments for a short period, with the understanding that another option will be used afterwards to bring the account current.
Lenders sometimes combine Forbearance with Reinstatement if you know you'll have the funds to bring your account current by a specific date.
3.A Repayment Plan
If your account is past due, but you can now make payments, the lender may agree to let you catch up by adding a portion of the past due amount to each currentmonthly payment until your account is current.

Solutions for Longer-Term Problems

1.Mortgage Modification
If you can make your regular payment now, but cannot catch-up the past due amount, the lender may agree to modify your mortgage. One solution is to add the past due amount into your existing loan, financing it over a long term.
Modification might also be possible if you no longer have the ability to make payments at the former level. The lender might modify your mortgage to extend the length of your loan, or take other steps to reduce your payments.

2.Selling Your Home
If catching up is not a possibility, the lender may agree to put foreclosure on hold, giving you some extra time to attempt to sell your home.

3.Deed in Lieu of Foreclosure
The lender may allow you to give-back your property, in turn forgiving the debt. This does negatively affect your credit record, but not as much as a foreclosure. The lender may require that you attempt to sell the house for a specific time period before allowing this option; the option may not be possible if there are other liens
against the home.
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