If you have ever found yourself in the position of not being able to afford your mortgage, you know first hand how scary the proposition of foreclosure can be. Thankfully, the U.S. Department of Housing and Urban Development dictates that lenders should try to work with homeowners to come up with loan workout solutions to avoid foreclosure. These solutions vary depending on the duration of your financial hardship, and today, in part one of a two-part series, we’ll explore a few common temporary solutions frequently offered by lenders.
At Cash 4 Kansas Homes, we understand that there may be several reasons you need to sell your home quickly for cash. If you are a Kansas city resident who’s looking for a way to avoid or stop foreclosure on your home, contact us today! We would be happy to review our buying process with you and make a fair cash offer for your home within 48 hours. We’d love to help you!
Three Options for Temporary Relief
There is nothing more stressful than being unable to make your monthly mortgage payment. However, depending on your lender, there may be a few mortgage workout solutions to provide temporary relief.
Reinstatement is an option that many lenders will offer homeowners who have found themselves behind on payments. Avoiding foreclosure is optimal for both the lender and the homeowner, and with a reinstatement option, the lender may agree to payment of a single, lump-sum amount so that you can get caught up on payments missed in the past. The option to reinstate your loan can be offered on its own, however, it is frequently paired with an option for forbearance.
If you have ever had to place your student loan payments on hold, you have probably heard the term “forbearance” before. If your lender offers a forbearance solution, this means that they agree to temporarily suspend or reduce payments for a short period of time. Of course, the lender will want to know when the payments will begin again and how the missed payments will be made up (this is often where reinstatement comes in). Many times, forbearance will be offered with the understanding that your loan will be brought current once you come into more money, either from a settlement, tax refund, investment, or some other financial bonus.
If your lender provides you the option of a repayment plan, this means that you’ll enter into an agreement with the lender that provides for a delayed repayment of any owed payment amounts. This is the most common solution that lenders will offer homeowners and allows one to include an extra amount on each monthly payment until the deficit is made whole. For example, if your monthly mortgage payment is $1,500 and you are $1,000 in arrears, you may pay an extra $250 on top of your regular payment each month for four months to clear the overdue amount.
Stop Foreclosure on Your Kansas City Home
It’s never a good situation when you can’t afford your monthly mortgage payments, and you deserve to have access to solutions that will allow you to keep your financial integrity intact. If you’ve contacted your lender and discovered these temporary loan workout solutions are not available to you, or if your financial hardship will be a permanent one, contact Cash 4 Kansas Homes today! With our innovative real estate solutions, we have helped many Kansas City homeowners avoid and stop foreclosure. When you choose to sell your home to our company, there is never any hassles or obligations. Call us at 913-276-0769 today to get started!