EMPOWERMENT

Empowerment is the process of becoming STRONGER , more CONFIDENT, and in CONTROL of one’s own life.

If you are struggling with your mortgage, empowerment starts here… because knowledge is POWER.

KNOW YOUR OPTIONS


What is a MORTGAGE FORBEARANCE?


With this option, you and your mortgage company agree to temporarily suspend or reduce your monthly mortgage payments for a specific period of time. This option lets you deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current.

Forbearance may be an option if you are:

  • Behind on your mortgage payments or on the verge of missing payments

  • Experiencing a temporary hardship

What are the benefits?

  • Lower or temporarily suspend your monthly payment—giving you time to improve your financial situation and get back on your feet

  • Less damaging to your credit score than a foreclosure

  • Stay in your home and avoid foreclosure

How does it work?

Forbearance reduces your monthly mortgage payment—or suspends it completely—during the forbearance period. If you qualify for forbearance, you and your mortgage company will discuss the forbearance terms:

  • Length of forbearance period

  • Reduced payment amount (if the payment is not suspended)

  • The terms of repayment

After the forbearance has ended, you will need to repay the amount that was reduced or suspended. However, you are 

not required to repay the missed amount all at once, though you have that option.

Other potential options are:

  1.  Repayment Plan - allow you to make an additional payment each month for a period of time until the past due amounts are repaid

  2. Payment Deferral - move the missed amount to the end of your loan term

  3. Modification - set up a loan modification, if you are eligible

TAKE ACTION

  1. Speak to a Short Sale Specialist regarding your options

  2. Gather your financial information

  3. Explain your current situation

  4. Contact your mortgage company

What is a PAYMENT DEFERMENT?


“A payment deferral moves your overdue mortgage balance to the end of your loan term and keeps your monthly payment the same”


This mortgage relief option moves past-due amounts from missed payments to the end of your loan term so you can keep the same monthly payment while bringing your loan to a current status.


Payment deferral may be an option if you are:

  • Behind on mortgage payments or at the end of a forbearance plan

  • Able to resume your regular monthly payments (your financial hardship is resolved)

  • Unable to catch up on outstanding balances with a reinstatement or repayment plan


What are the benefits?

  • Bring your mortgage current immediately

  • Keep your monthly payment the same

  • Deferred amount does not accrue interest

  • Less damaging to your credit score than a foreclosure

  • Stay in your home and avoid foreclosure


How does it work?

  • You must contact your mortgage servicer to see if you’re eligible

  • Your financial hardship must be resolved, and you must be able to make your regular monthly payments

  • Brings your loan to a current status and keeps your payment the same

  • Moves past-due amounts to the end of your loan term when they’re due with your last mortgage payment or earlier if you sell your home, refinance, or otherwise pay off your loan

  • Your mortgage servicer may send you a Payment Deferral Agreement to document the solution


TAKE ACTION

  1. Speak to a Short Sale Specialist regarding your options

  2. Gather your financial information

  3. Explain your current situation

  4. Contact your mortgage company



What is the difference between MORTGAGE FORBEARANCE and PAYMENT DEFERMENT?

Mortgage forbearance and payment deferment allow borrowers to temporarily stop making their monthly payments, but they differ in what happens afterwards

At the end of a forbearance period, the amount of payments missed are due in a lump sum. However, lenders may choose to work with borrowers to structure a payment plan.  


Payment deferment allow borrowers to repay the money over time or add it to the end of their loan period.


Forbearance and deferment aren’t the only options. Some lenders offer loan modifications


What is a MODIFICATION?


Under this option, you reach an agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. In most cases, when your mortgage is modified, you can reduce your monthly payment to a more affordable amount.

A modification may be an option if you are:

  • You are ineligible to refinance

  • You are facing a long-term hardship

  • You are several months behind on your mortgage payments or likely to fall behind soon

    What are the benefits?

  • Resolve your delinquency status with your mortgage company

  • May reduce your monthly mortgage payments to a more affordable amount

  • Change the original terms of your mortgage permanently, giving you a new start

  • Less damaging to your credit score than a foreclosure

  • Stay in your home and avoid foreclosure

    How does it work?

    A modification involves one or more of the following:

  • Changing the mortgage loan type (e.g., changing an Adjustable Rate Mortgage to a Fixed-Rate Mortgage)

  • Extending the term of the mortgage (e.g., from a 30-year term to a 40-year term)

  • Reducing the interest rate either temporarily or permanently

  • Adding any past-due amounts, such as interest and escrow, to the unpaid principal balance, which is then re-amortized over the new term

TAKE ACTION

  1. Speak to a Short Sale Specialist regarding your options

  2. Gather your financial information

  3. Explain your current situation

  4. Contact your mortgage company

If above options are unattainable, homeowners are still able to avoid foreclosure by considering a Short Sale. Please click on the Short Sale tab to learn how you can apply for relocation assistance funds, while preserving your credit rating.


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