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When the housing market dips or your personal financial situation takes a turn for the worse, it may be difficult to make your mortgage payment. Fortunately, there are options for those who are having trouble keeping up with their home loan. Instead of having to sell your house or go through foreclosure proceedings, it may be possible to retain 100 percent ownership of your home.
Negotiate With the Lender
You should first try to talk to your lender. While lenders are not under any obligation to work with borrowers, it is often easier to negotiate a new payment plan than to spend time and money going through the foreclosure process. If you have a positive history with your lender, it may be possible to work out a short-term loan modification until you are better able to make regular payments.
Bankruptcy May be a Valid Option
While bankruptcy may seem like a scary thing to go through, it can buy you time while trying to work out a loan modification. When you file for bankruptcy, your lender is temporarily unable to continue the foreclosure process against you. In a best case scenario, you will be able to use this time to get your lender to agree to a new payment plan that enables you to stay in your home.
Look to the HARP Program
If you have been making timely payments on a home that is worth less than your loan, it may be possible to enroll in government home loan relief programs. Programs such as the HARP loan may lower your mortgage to the amount that your home is worth to make it less likely that you are underwater on the loan.
If you are having trouble paying your mortgage or you owe more than your home is worth, it may be possible to find relief. Talking to your lender, filing for bankruptcy to buy yourself time or enrolling in programs like HARP may increase the odds that you are able to stay in your home.
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