I Am Behind On My Payments, What Can I Do?
Options Available To Assist You
If you’ve fallen behind on your mortgage payments, you're not alone. The pandemic has left many homeowners across the Triad, including areas like Lewisville, Winston-Salem, Greensboro, and High Point, searching for solutions to avoid foreclosure and get back on track. Whether you lost your job during COVID-19, had to relocate, or experienced a significant change in income, it’s crucial to explore your options and find the best path forward.
Here Are Possible Solutions To Avoid Foreclosure
If you've come into a large sum of money, you might consider reinstating your mortgage. This means paying off the entire past-due balance in one lump sum, bringing your loan current, and resuming your regular monthly payments. This option allows you to avoid any further penalties or damage to your credit.
If a lump sum payment isn’t feasible, a repayment plan could be a viable option. This plan involves paying an additional amount each month, on top of your regular mortgage payment, to gradually catch up on missed payments. This solution is suitable for those who have returned to work and can afford to pay extra monthly until they are current.
If you’re back on your feet but can’t afford to pay more each month, a payment deferral might work for you. This option allows you to move your missed payments to the end of your loan term as a separate lien, which you’ll pay off when you sell your home or refinance. This keeps your mortgage current without increasing your monthly payments.
A loan modification can be a lifesaver for homeowners whose income has been permanently reduced due to COVID-19 or other factors. This process involves renegotiating the terms of your mortgage with your lender to lower your monthly payments, often by extending the loan term or reducing the interest rate. In some cases, a portion of the principal balance may be deferred or forgiven. This option is ideal for those looking to stay in their homes long-term.
If you have equity in your home, selling it might be the best option. In today’s hot real estate market, you could potentially sell your property for more than you owe, pay off your mortgage, and walk away with cash in hand. Selling to a cash buyer can expedite the process, as they often purchase homes as-is, without requiring repairs or financing contingencies.
If you owe more on your mortgage than your home is worth, a short sale might be an option. In a short sale, the lender agrees to accept less than the full amount owed to release the lien on the property. While this option can negatively impact your credit, it’s typically less damaging than a foreclosure and allows you to avoid the legal process.
If all other options have been exhausted and you’re facing foreclosure, a deed in lieu of foreclosure might be your last resort. This process involves voluntarily transferring ownership of your home to the lender to avoid the formal foreclosure process. While you’ll lose your home, this option can prevent a foreclosure from appearing on your credit report and may include relocation assistance.
If all other options have been exhausted and you’re facing foreclosure, a deed in lieu of foreclosure might be your last resort. This process involves voluntarily transferring ownership of your home to the lender to avoid the formal foreclosure process. While you’ll lose your home, this option can prevent a foreclosure from appearing on your credit report and may include relocation assistance.