Depending on the type of mortgage you have taken out on your home, you may have one or more options, other than foreclosure.

There are several options which may be available to you and help you stay in your home.

First, the mortgage company may agree to a forbearance plan. This means that your lender may allow you to reduce the amount of your payments, or totally suspend making payments for an agreed upon period of time. Usually, as a part of this type of agreement, the amount your monthly payments are reduced or suspended by the lender, is added onto your monthly future payments at an agreed upon time, or a lump sum payment is required.

Second, if you have a HUD mortgage, your lender may be able to apply for a one time FHA Insurance Fund payment, known as a HUD Partial Claim to bring your loan current with payments.

Third, you may be able to re-finance your loan to reduce your monthly payments by converting your adjustable rate mortgage (ARM) into a fixed rate mortgage. You may be able to lengthen the term of your loan from a 15 year loan to a 30 year loan and reduce your monthly payments. You may also be able to re-finance your mortgage using the equity you have already paid toward your mortgage, to satisfy the amount you owe.

Fourth, your lender may agree to let you make the regularly scheduled loan payment plus an extra monthly amount, as a part of a repayment plan, toward the amount your loan is behind.

There are several options which may be available to you even if you have to move out of your home.

First, if you sell your property and pay off your mortgage before the property is foreclosed on, this prevents you from defaulting on your loan and escape damaging your credit rating. This option will also allow you to keep any equity you have built up in your home.

Second, a deed in lieu of foreclosure is another option which allows you to ‘voluntarily’ give the home back to the lender without further damage to your credit. In this option you need to be sure that the lender doesn’t retain the right to ‘come after you’ if the property does not sell at auction quickly, or if there are expenses which the lender is unable to recoup in the take-over of your property.

Third, Short Sales are negotiated written agreements between you and your lender which may allow you to sell your home for less than what is owed.   An experienced licensed realtor can help you with a Short Sale if you are in danger of losing your home.

Don’t delay. Contact us today to discuss the options that are best for you and your family.