What are Other Foreclosure Avoidance Options?

What are Other Foreclosure Avoidance Options?

Foreclosure is one of the most devastating financial challenges that a family can face and many times, it can be avoided. A short sale is not the only alternative to foreclosure. Here are others:

Reinstatement. A reinstatement is the simplest alternative to a foreclosure—when it’s possible. Following a period of nonpayment, the homeowner simply pays the mortgage company the total amount due to date, and the mortgage is reinstated.

Forbearance. A forebearance is repayment plan that involves a negotiation with the mortgage company to make additional payments over a period of time in order to become current on the mortgage.

Mortgage Modification. A mortgage modification involves the reduction of one of the following: the interest rate on the loan, the principal balance of the loan, the term of the loan, or any combination of these. Be sure to never work with a mortgage modification company that requires an upfront fee. I can provide a list of HUD-approved counselors and mortgage modification resources.