If you can’t continue making your mortgage payments because they’re too high or you’re having trouble getting caught up on past-due payments, you might be able to avoid a foreclosure with a:
In a forbearance agreement, the lender agrees to lower or eliminate your mortgage payments for a short amount of time. On the other hand, in a repayment plan, the lender temporarily increases your monthly payment by adding a portion of the overdue sum to each payment. With a loan modification, the lender typically lowers your monthly payment and brings the loan current by adding any past-due amounts to the balance of your loan.
In a forbearance agreement, the lender gives you permission to make reduced mortgage payments—or no payments at all—for a while. You might qualify for a forbearance agreement if you’re currently having trouble making the payments, but you can convince that bank that you will be able to afford them in the near future. For example, if you break your leg and can’t work for a few months, the lender might let you stop making payments until you go back to work. Forbearance agreements ordinarily last three to six months, though a longer period might be possible, depending on the lender’s guidelines and your situation.
At the end of the forbearance period, you start making your regular payments again. In addition, you might have to bring the loan current by paying the skipped amounts. Lenders usually offer few ways for you to repay the amounts that you didn’t pay during the forbearance period. For example, you can usually:
If you’re already behind in mortgage payments because of a temporary financial hardship, but are now back on your feet, you might be able to get caught up through a repayment plan. For instance, you probably qualify for a repayment plan if you fell behind in your mortgage payments because you lost your job, but now you’re re-employed.
In a repayment plan, you pay a portion of the overdue amount along with your regular mortgage payment over a period of time. Say you're three months behind on your monthly payments of $1,500 a month (a total of $4,500 behind). The lender might allow you to pay $750 extra each month over the next six months to get current on the loan. This means you’ll pay $2,250 a month for six months. At the end of the repayment period, you resume making your regular monthly payments of $1,500 a month.
Lenders usually give borrowers repayment plans that last three, six, or nine months. The lender probably won’t offer you a longer repayment plan because borrowers tend to have trouble making bigger than usual payments for an extended period of time.
With a loan modification, the lender agrees to change your loan terms, which in turn often lowers your monthly payment to a more affordable amount. In order to reduce the payment, the lender typically agrees to lower the interest rate and extend the term of the loan. The lender also normally adds any past-due amounts to the unpaid principal balance as part of the modification.
To get a loan modification, you’ll likely have to show the bank that you can't make your current mortgage payment due to a financial hardship, but you can afford to make a lower monthly amount from now on. For example, if you now make less money because your employer cut your hours, you're probably a good candidate for a loan modification.
As part of the modification process, you’ll have to complete a “trial period” to prove you can afford the new, lower monthly amount. Usually the trial period lasts for three months. If you make all three payments during the trial period, the lender will permanently modify the loan.
Most loan modifications used to happen under the federal government’s Home Affordable Modification Program called HAMP, but that program is no longer available. Now, almost all lenders offer in-house (proprietary) modifications to borrowers who are having trouble keeping up with mortgage payments and who qualify for help.
Also, Fannie Mae and Freddie Mac—the government-supported enterprises that own or guarantee many mortgages—offer the Flex Modification program, which can lower an eligible borrower’s mortgage payment. To qualify for a Flex Modification, Fannie Mae or Freddie Mac must own or guarantee your loan and you must meet other eligibility criteria. Lenders often sell home loans to Fannie Mae or Freddie Mac on the secondary mortgage market. (When a borrower takes out a home loan, the originating lender underwrites, funds, and services the loan in the beginning. To get money to make more loans, most lenders eventually sell the loans they originate to other banks or investors, such as Fannie Mae and Freddie Mac, on the secondary mortgage market.)
If the Federal Housing Administration (FHA) or U.S. Department of Veterans Affairs (VA) guarantees your loan, you might qualify for a modification under their programs for borrowers with those types of mortgages.
To learn if you qualify for a forbearance agreement, repayment plan, or loan modification, call your lender or mortgage servicer. If you need more information about different ways to avoid foreclosure, consider contacting an attorney or a HUD-approved housing counselor.
My boyfriend is being offered either 4 years at 80% with no strike or 16 months at 80% with a strike for stealing a phone charger from wal mart that was priced around $30. He has a previous strike from grand theft auto at gunpoint committed 5 years prior. Do you think theres a possibilty he could be offered a better deal that won't include another strike such as 3 years with half time? or something of that nature? As of right now he has a public defender. Would a lawyer be a better choice? (he is being charged with robbery and burglary by the way)
Also, we are planning to get married while he is incarcerated. Is there a way our marriage could be presented in the plea bargain?
I had to file bankruptsy in 2003 because my sales business failed after 10 years. I am now disabled and my income can not pay what I owe, as a christian I have tried to find other means of paying but it looks like chapter 13 is my only option. It is mostly Medical bills and a couple of credit cards. how long do you have to wait before you can file bankruptsy again. Like I said I hate to even have to consider this as an option but my health is bad and my SSI is my only income and I am a 55 year old single person. Can you supply me with the answer to my question and how much do you charge for a bankruptsy.
God Bless
Susan Gresham
Unauthorized opening of mail
My former roomate has opened my mail twice and I told her not to open my mail after the 1st time. Now that she has opened it a second time (and its very personal things she doesn't need to see) I would like to do something about it but im not sure how to go about it or even if its worth it. What do I do? I would like her to be punished for her actions. I am still on the lease so I still receive mail there I just dont live there anymore.
sixth ammendment rights
My brother was arrested for a misdemeanor and two weeks prior to trial the public defender told him there are 4 felony charges. Isn't this a violation of his rights to know what he is charged with prior to arraignment? He asked his public defender this question and he didnt really give a reply.