If you think foreclosure might be in your near future, you’re probably desperate to find foreclosure alternatives. In nearly all cases, foreclosure is not a good situation. Though there are a few odd scenarios in which it makes sense, by and large, most homeowners will want to avoid it at all costs.
The first and most common route many people consider is mortgage modification. This can be a great way to extend your mortgage or get a better set of terms on your existing mortgage. Talk to your mortgage provider about what options you might qualify for. Foreclosure isn’t a fun or convenient process for the bank either, so they’re likely to work with you if at all possible.
Other popular foreclosure alternatives include refinancing and repayment plans. Refinancing affects the loan connected to your mortgage. It’s different than mortgage modification. Check out other posts on this blog for a more detailed explanation regarding the differences between refinancing and mortgage modification.
Special forbearance is another great foreclosure alternative you might be eligible for. Under a special forbearance plan you might be able to suspend or reduce payments for a set amount of time. Check with your mortgage provider to see if you qualify for this relief.
Lastly, look into filing an HUD partial claim. Your loan has to be insured by the Federal Housing Administration in order to qualify. But, if you do qualify, an HUD partial claim (you can only pull this card once, by the way), can help you get up to date on paying your mortgage.
These and other foreclosure alternatives are worth looking into if you find yourself in desperate times!