If you’ve found ways to keep the house, here are some reminders on how to make it all a bit easier for you.
FHA mortgage
The Federal Housing Administration (FHA) is now assisting borrowers who are having difficulty with their monthly payments. Even before you become delinquent, submit to them proof that your payment difficulties were caused by one of the following: reduced income from job loss, fewer hours paid at work, lowered salaries or lack of business if you are self-employed. You can also include disability or death, as part of changed household circumstances.
FHA actions include forbearance, where payments are postponed or reduced for a specified period, to be paid at a later date, and actual monthly payment reductions by lengthening the loan terms, lowering the interest rate or forgiving part of the principal itself.
Mortgage loan modification
Many people who had trial modifications could not adjust their financial planning to the fact that in many cases, in order for a family to keep the house, the interests rates were lowered simply by extending the loan terms for a considerable number of years.
However, this is one of the more popular methods, aside from shifting to long-term, fixed-rate mortgage loans. It is still possible to have a permanent reduction on the principal cost of the house (in other words, a write-off), but you will have to qualify under the bank and the government’s terms. While these actions are similar to the FHA’s, do remember, that you are dealing with two different (though related) entities. It will always be good to inquire as to what the qualifications and terms are for mortgage loan modification.
Just remember, start handling your money wisely, and perhaps it’s time to temporarily tighten your belt. But once it’s all over, you will still have your home.
Sign up on the box at the right to find out if you have more options for mortgage loan modification.
Add A Comment