Your home is your haven. Whether you have lived in the same place for decades or you have only lived there for a couple of years, there truly is no place like home. Unfortunately, sometimes life happens and you can no longer afford the mortgage payments. You should know that there are options that will let you stay in your home in spite of your setbacks, at least until you can get back on your feet.
Mortgage modification is a way for your lender to help you when you are falling behind on mortgage payments or facing long-term financial hardship. There are several ways that this can be done. First, you might extend the length of your loan. If the original loan was for 30 years, you might change it to a 40 year loan. Another way is to apply a fixed rate to a mortgage with a variable interest rate. Finally, you might be able to reduce your interest rate altogether, making the monthly payments significantly lower.
Forbearance is a good option for temporary financial hardship, such as an illness, injury, unemployment, divorce, or death. Forbearance is a temporary suspension or reduction in your monthly mortgage payments for a predetermined period of time. With this option, you will be required to catch up on missed or reduced payments as soon as the forbearance period is over. However, this doesn’t have to be paid in one lump sum. You can increase your monthly payments by a certain amount until you are caught up on your loan.
Sometimes, financial reversals are severe enough that there is no hope of recovery. When this happens, you can still stay in your home with a sell-to-rent-back program. Many cash home buying companies are happy to buy your home and rent it back to you. You may no longer own your home, but you won’t have to face the trauma of eviction from the home you love.
When your home means everything to you, you will do everything you can to stay there—even when you experience financial hardship. There are options for you. When times are hard, the last thing you need is to lose the home you love.
If you are facing foreclosure but want to stay in your home, contact BUYBHM for help. You can click here to learn more and start the process with a free, no obligation consultation.