First of all, if you are behind in your payments or facing foreclosure, the very first thing that you need to remember is that communication with your mortgage company is vital. I have experienced first hand with some of my clients that have been in trouble the importance of good communication. It especially comes in handy down the road if you really need a favor from the lender. If the communication has been good, they are more willing to listen.

The intent of this blog is to give homeowners information about the different ways that their lenders can work with them to come up with a solution to the problem. If you would like you can contact me for a free brochure that outlines what actions homeowners should take when in foreclosure. Please visit my website at www.joshmcknight.com

We are going to be discussing 5 things that the lender can do for you to help you in your current situation. And please try to remember that you are not alone in this process, and that there is support out there if you are willing to reach out for it.

1. The first option, and in no particular order is known as forbearance. Forbearance occurs when lenders let you make partial payments, or even skip payments if you can reasonably expect to catch up in the near future. This would be great for example, if you had to miss work for a period of time and did not have a income.
2. The second option would be reinstatement. Reinstatement occurs when you make a lump sum payment to catch your mortgage up to date. In most cases, lenders are required to let you reinstate the mortgage if you do have the money. Unfortunately, this option is used the least because it is difficult to come up with a lump sum.
3. The third option you can consult your lender about would be work out some kind of repayment plan. This will occur when the lender allows you to make your normal monthly payment, plus a little extra each month until you catch up. This again works great if for some reason you could not make a few payments, but now you are back on track.
4. The fourth option is known as loan modification. This occurs when your lender agrees to change any term to your mortgage in your favor. For example, some common terms that may be changed to help you would be the interest rate, the amount of time that the loan needs repaid, switching from an adjustable mortgage to fixed and so on. The lender may even take the back payments that you have missed, place them on the back of the loan catching you up to date, and then recalculate the loan.
5. The last option would be known as deed in lieu of foreclosure. This will occur when you agree to sign the house over to the lender before it forecloses to avoid the whole process.

Keep in mind that the options above are great when you are dealing directly with the lender. Aside from all of the above mentioned ways to help the situation, you may want to consider selling the property on the market and moving on. Please feel free to contact me if you have any questions.

Visit my website for more solutions and free material at www.joshmcknight.com

Joshua McKnight