Most homeowners do not own their homes outrightly. The majority took a loan to secure the house. However, unforeseen circumstances happen from time to time, making it challenging to keep up with mortgage payment. Sometimes the challenge might be due to economic crises, causing homeowners to lose their jobs or have salary reductions. It might be due to personal situations such as divorce, medical emergencies, and others. Your lender is also aware that circumstances occur that can put you in temporary financial difficulties. There are alternatives already established that your lender will offer to help you through such times. However, suppose you fail to maximize the opportunities when it was offered. In that case, your lender will proceed to initiate foreclosure and might not be willing to help you. How can your lender help you stop foreclosure on your home?

Loan modification

The process requires you to negotiate changes to your loan agreement with your lender. It would be best if you considered doing this with a lawyer or a mediator—the reason been that you will get a better result when a third party is involved. Changes can be made to your loan duration, the amount paid monthly, interest rate, and other areas. The goal is to make it easier for you to pay your mortgage.

Refinancing

Refinancing is how your lender offers you a new loan to pay off the current loan. It’s different from a second mortgage in that you will only be paying back the new loan as the first would have been cleared off. Not all lenders will be willing to offer to refinance but provided your credit score is good, and you have a stable income, your request should be granted.

Forbearance agreement

Depending on your financial situation, your lender can decide to suspend your mortgage payments for a set period. A forbearance agreement will be signed, stating that you cannot pay your mortgage for a set period of time.

Any of these options can help you stop foreclosure and prevent damage to your credit score. Contact your lender today to discover the help available for you.

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