Forbearance would be a temporary solution towards delaying a foreclosure. Forbearance is when your mortgage servicer, allows you to pause or reduce your payments for a limited period of time. This option gives you a chance to deal with your short-term financial problems by giving you time to get back on your feet and bring your mortgage current. Forbearance does not erase what you owe. You'll have to repay any missed or reduced payments in the future.Things to keep in mind with mortgage forbearances are:
1. Your mortgage provider may request to have the balance of suspended payments paid in full at the end of forbearance.
2. Mortgage providers will report your forbearance to the credit bureaus.
3. Some lenders will not allow you to refinance your mortgage with a forbearance on your credit report for a certain time period that will vary from lender to lender.
A mortgage refinance refers to the process homeowners take to obtain a new loan to pay off and replace an existing mortgage. Borrowers generally refinance their homes to lower their mortgage rate or to pull some equity out of their home also known as a "cash out refinance."
Homeowners can work with their existing lender to request a change in the terms of their current loan due to a hardship. A loan modification my involve rate reductions, extension of loan term, a different type of loan or any combination designated by your lender.
SELL YOUR PROPERTY
Selling your property is not an easy decision to make but should be considered as another option to avoid foreclosure. Depending on what stage of the foreclosure process you are this might be considered viable option for you.
A homeowner may consider a short sale when the combination of all debts against the property are higher than the current market value. A short sale occurs when a homeowner sells their property for less than what is owed against the property. Short sales can only be approved if all lien holders agree to accept less than the amount that is owed prior to closing.
DEED IN LIEU
A deed in lieu of foreclosure is a deed instrument in which a mortgagor (i.e. the borrower) conveys all interest in a real property to the mortgagee (i.e. the lender) to satisfy a loan that is in default and avoid foreclosure proceedings.
LIST OF HARDSHIPS
1. Illness or Injury
2. Change of Employment Status
3. Loss of Income
4. Natural Disasters
7. Military Deployment
Covid-19 would be classified as a natural disaster.