“Workout” mortgage options may be available to Redding Ca Homeowners to avoid Foreclosure.
If you are a home owner in Redding Ca and begin to feel you can no longer make your monthly home loan payment, it is time to contact your lender to discuss some options that may be available to you such as loan modification, short sale, or even deed in lieu of foreclosure.
First and most important, if you can keep paying your mortgage, continue to do so.
Repayment Mortgage
A Repayment option is when the monthly payment is made along with an additional amount to “repay” what was owed. This way the defaulted amount is paid back slowly over time. The homeowner may be able to get reach an agreement with the lender to continue making a monthly payments, in addition to a portion of the past due payments each month until the loan is paid off.
Forbearance
Another option that may work for the lender and borrower is to suspend the monthly payment for a set period of time. Although suspending payments can happen, some lenders choose just to reduce the payment for a set amount of time instead. Either case is considered forbearance on a mortgage and could be worked out between homeowner and lender.
Reinstate the Loan
The lender may also accepting the total amount owed to them in one large payment by a certain date. If the homeowner can show they will be receiving the funds from another source (gift,IRS,settlement..etc.) the bank may see that as an good option to hold off foreclosure and wait for the lump sum. Reinstating and Forbearance often go hand in hand or are combined to workout for the owner and the lender.
If the Redding homeowner has a long term hardship a permanent loan modification may be in order.
Home Affordable Modification Program-HAMP
The federally ran program provides struggling homeowners the chance to modify the home mortgage to make them affordable. The borrower must apply to their lender to see if they qualify.
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