MORTGAGE DEFAULT HELP

Several options may be available if you’re in default on your mortgage. Many of the industry terms may be used interchangeably, although the specific option or “tool” available may vary by the type of mortgage, i.e. FHA, VA, conventional, etc. Almost all types of mortgages contain provisions for the following general options: forbearance agreements, reinstatement plans, and loan modifications. These options may assist you in curing the delinquency, retaining home ownership, and preventing foreclosure.

The final decision regarding any help available to you will be made by the “Investor” or note holder (lender/servicer). Their decision will be based in part on your previous payment history, current debt load, and other factors that will indicate your ability to repay the loan if they provide a way out.

All mortgage types contain several alternatives that may be available to you. Although you may not be able to retain ownership, you can attempt to mitigate the consequences of a foreclosure by utilizing one of the following options:

pre-foreclosure sale, short sale or compromise offer, loan assumption, or a deed-in-lieu of foreclosure. The following contains information on some of the options available to you if you are in default.

En Español


	»	You should contact the Lender/Servicer first and make a good faith effort to resolve the problem.



	»	Before making contact with them, go over your current bills and tally up your income. Prioritize what needs to be paid and when.



	»	Eliminate any excess, and reduce your expenses so that you are in a position to show the Lender/Servicer you have taken stock of your situation and are making a good faith effort to reduce spending.