There are laws set to protect homeowners in times of financial difficulties. Many homeowners still have to make a monthly payment for their mortgage. When it’s hard to make ends meet, you wonder how homeowners can yet spare hundreds of dollars to pay for their mortgage. However, many homeowners cannot make this payment leading to their home been foreclosed. It doesn’t have to be that way; there are ways you can explore to stop foreclosure on your home. Foreclosure is a stressful process for most lenders as well; therefore, if you contact your lender to discuss loss mitigation alternatives, they will be glad to help you. Loss mitigation alternatives are some of the help made available for you to help you save your home. However, many homeowners are not aware of it and end up losing their homes. Here are some of the loss mitigation alternatives you can negotiate with your lender:

• Mortgage forbearance agreement

If your situation is such as a medical emergency that will only last or a couple of months, you can contact your lender to request a forbearance agreement. A forbearance agreement is that your lender makes with you, permitting you to stop making payment on your mortgage for a certain period or pay a lower amount for the set time. Provided your reasons are well stated in a hardship letter, most lenders will grant your request.

• Refinancing

Refinancing is the process of taking another loan to pay off a current mortgage to stop foreclosure. Although most lenders might not be willing to help struggling homeowners refinance their loans. However, if you have a good credit score and a steady income source, you will be considered.

There are many other options available for your benefit. Contact your lender to find out the options they have available. Negotiating loss mitigation requires the service of a legal practitioner. Have a foreclosure lawyer go through the process with you for the best results.

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