Discover 101 Amazing Real Estate Tips and Secrets
Alternatives to Foreclosure
Buying a house is a big investment. It really puts a dent on your financial resources. Of course,
the expenses do not end with the down payment. You still have to contend with the monthly
payments for the mortgage. This is a financial situation that you will have to live with for years
until you have fully paid off your loan.
But what happens if you get behind in your mortgage payments? A delay in payment can have
very serious consequences for your mortgage situation. If the delinquency in payments has
become too severe then your home could be in danger of foreclosure. A foreclosure means
that your property will be repossessed by the lending institution that gave you your mortgage.
Fortunately, even if you have defaulted on your payments, it does not necessarily mean that
your property will be foreclosed. There are various alternatives to a foreclosure that you can
take. Some of these are:
Paying the delinquency. Generally, all lending institutions are required to accept all the
payments that were delinquent and reinstate the loan. The delinquent payments that you have
to pay may also include some legal fees especially if you are already in the foreclosure stage.
There are also lending institutions that require certified funds in order to reinstate the loan.
Forbearance and Repayment. One of the most common ways of resolving a delinquent
mortgage is to work out a plan with your lending institution where in you get to pay a part of
your delinquency every month on top of your regular monthly payments. If you are in a
situation where you are not able to meet the monthly mortgage payments, your lender can
elect to extend the forbearance by suspending payments for a certain period of time up until
you can start a repayment schedule.
Payment Assistance. Some state and local governments and also private charitable
organizations have instituted programs that help people with delinquencies pay all or part of
their mortgage ob