While November 2008 foreclosures were down 7% compared to October, they’re still 28% higher than November 2007. No doubt, you may be a little nervous if you own a home, and we’re not saying you shouldn’t be. However, there are other alternatives to foreclosure if you can’t pay your mortgage payments as they stand.
Here are five financial options to consider straight from Fannie Mae to help you find a solution.
“1 Repayment Plan–An arrangement by which a borrower agrees to make additional payments to pay down past due amounts while still making regularly scheduled payments.
2 Advance (HomeSaver AdvanceTM)–A monetary advance to cure a delinquent loan.
3 Modification–Any change to the terms of a mortgage loan, including changes to the interest rate, loan balance, or loan term.
4 Pre-foreclosure or Short-Sale–The process in which a servicer works with a delinquent borrower to sell the house by a REALTOR™ prior to the foreclosure sale.
5 Deed-in-Lieu–The transfer of title from a borrower to the lender to satisfy the mortgage debt and avoid foreclosure; also called a ‘voluntary conveyance.’”
If any of these options sound like possibilities for you, you should contact your lender to discuss them.
