Know Your Options to Avoid Foreclosure
If you’re facing financial hardships and are worried about the bank foreclosing on your home, there are several mortgage relief options that you can consider to help you avoid foreclosure.
Ways to Stay In Your Home
Potential options to stay in your home and avoid foreclosure include:
- Modification: You may be able to negotiate with your mortgage company to adjust the original terms of your agreement—including the payment amount and length of your loan—to make your payment more affordable.
- Repayment Plan: If you’re past due, you could agree to split your balance and add it on to additional future payments. This resolves delinquency and helps you catch up over a longer period.
- Refinancing: It’s possible to create an entirely new loan that replaces your current mortgage. Refinancing in this situation would only be helpful if it lowers your interest rate and, therefore, the payment enough to bring it in line with your budget.
Leave Your Home Without Foreclosing
Options for when you cannot stay on your property but want to avoid foreclosure include:
- Sale With Equity: If your home is worth more than your mortgage balance, you can convert that value into cash to use when you sell. It pays off your remaining debt, and you have flexibility and control leaving your home.
- Short Sale: The opposite of a sale with equity is a short sale. If your mortgage company agrees, you can sell your home and pay a portion of the balance with the revenue. You may have to make your own financial contributions, but you’ll be relieved of any remaining balances through a deficiency waiver.
- Mortgage Release: Your property’s ownership is transferred to your mortgage owner in exchange for a release from your loan and payments. While it’s a loss of control, it eliminates your debt, and you may qualify for relocation assistance.
Reverse Mortgage Option
If you’re over 62 years of age, you can apply for a reverse mortgage by borrowing against the value of your home. As long as it is your primary residence and you pay all the maintenance fees, the loan does not have to be repaid.
Explore Your Options with Butler Mortgage
Regardless of what option you choose, Butler Mortgage is here to guide you and help you avoid foreclosure. For over 25 years, Butler Mortgage has worked with buyers wanting to own a home in Central Florida. Let us help you find the right loan solution for you by calling 407-931-3800 or by filling out our free consultation form online.