You have a problem. You have a house and you cannot afford to make the payments. You are not alone. Unfortunately, there are millions of people in your situation. The good news is that you have many options to help you avoid foreclosure. The solution will depend on your particular situation.
If you are just having a temporary cash flow problem, there are a couple of options that will help you.
Look into getting a forbearance plan. Forbearance is when your bank allows you to temporarily suspend or reduce your monthly payment. You will have to make a repayment plan so that you can pay your regular monthly payment and part of the past due payments until you are caught up. You can also pay the full amount you owe (the arrearage) with a recent hiring bonus, insurance settlement or tax refund. Other ways to raise money to pay the arrearage is to sell stock, sell an investment property or sell an extra car you donâ€™t need. Get creative.
Renegotiate you loan with you current lender or mortgage modification. You can renegotiate your loan if you have a high interest rate or you have a rate that is about to reset. You can reduce your interest rate; change an (ARM) Adjustable Rate Mortgage into a fixed rate. You can also extend the amount of years you have to repay the mortgage. For example you can change a 30-year mortgage into a 40-year mortgage.
If you have mortgage insurance you can apply for a Claim Advance. How do you know if you have mortgage insurance? Most FHA loans have mortgage insurance. You can also check your loan documents to see if you have it. A claim advance is a loan from the mortgage insurance to bring your mortgage up to date. Please note that you will have to qualify.