Has COVID-19 and a resulting medical emergency or sudden job loss caused you to fall behind on your mortgage payments? Whatever the reason for your financial difficulties, you have options for reversing the situation.
Mortgage lenders know that foreclosures are costly, so they want to avoid that outcome whenever possible. Your lender should be willing to work with you and find a way to get back on track with your home loan. Here, the professional team at Intercap Lending explains some of the possible solutions.
Forbearance Agreement
If you’re in financial hardship, your lender may consider a forbearance agreement. This results in a reduction or suspension of your monthly mortgage payments for a set period of time, which can give you a chance to get back on your feet without incurring late fees or penalties. Depending upon the agreement, the outstanding balance may be due when the forbearance period ends.
Payment Plan Negotiation
If you’ve missed a few mortgage payments, but are now in a position to get caught up, your lender may agree to let you pay the past-due amount over the course of several months. Once that period is over and you’re no longer in the red, you’ll go back to making your regular monthly payment.
Home Loan Modification
If you have regular income, but aren’t earning enough to catch up on your missed mortgage payments, your lender may agree to modify your home loan so that you pay less each month. The approach will likely involve reducing your interest rate, converting your mortgage from a variable to a fixed interest rate, stretching out the term of your home loan or tacking the overdue debt onto the end of the loan as additional principal. In any case, loan modification won’t require you to pay closing costs.
Mortgage Refinancing
If you’re struggling to make your mortgage payments, you may be able to avoid foreclosure by refinancing your home loan. You will be responsible for closing costs if you go this route, but some programs can help you secure a more affordable monthly payment. To explore your refinancing options, consult with experienced mortgage broker – that’s the easiest way to compare offers from multiple lenders
Intercap Lending, a leading mortgage broker serving clients in the Salt Lake City area, along the Wasatch Front and across the northern Utah region, can help you determine if refinancing could be the right way to regain control of your finances. Our professional team is happy to answer your questions, offer advice and provide you with the information you need to avoid foreclosure.
For a free, no-obligation consultation to discuss your options for lowering your monthly mortgage payments, talk to one of the expert team at Intercap Lending in Orem, Utah.Many programs are becoming available for homeowners who are affected by coronavirus. Contact us today for more information.