Alternatives to Avoid Foreclosure
The type of mortgage loan you have may determine what types of alternatives you may be eligible to pursue. Please contact your lender to discuss which alternatives you are eligible for, and which one is best for your situation.
Options To Retain Your Home:
The following options will result in you retaining ownership of your property.
- Repayment Plan: This usually involves establishing a schedule with your Lender to make a full regular monthly payment plus a little extra each month, to repay the delinquent amount over a specified period of time.
- Special Forbearance Plan: This option may provide for a temporary reduction or suspension of payments, that will be increased at a later point to repay the delinquent amount over a specified period of time.
- Mortgage Modification: This option may allow you to refinance the debt and / or extend the term of your existing mortgage loan.
- HUD Partial Claim: If your loan is an FHA insured loan, your lender may be able to obtain a one time payment from the FHA-Insurance Fund to bring your mortgage loan current with payments.
- Refinance: This option may allow you to use the equity that you have established in your home to pay the delinquent amount. Depending on the interest rate of your new loan, your monthly payments might be reduced. You can explore refinancing with your existing Lender as well as with any Lender of your choice.
- Homeowners' Emergency Mortgage Assistance: This option provides special financial assistance to Pennsylvania residents who are facing the possibility of losing their primary residence through foreclosure. Depending on the Homeowner's situation, they may be eligible to receive a LOAN to bring their mortgage payments current. Homeowners, depending on their circumstances, may also be eligible to receive financial assistance with their monthly mortgage payment for up to 24/36 months from the date the mortgage became delinquent.
Options To Dispose Of Your Home:
In situations where you do not want to retain ownership of the home, the following disposition options may be available as an alternative to Foreclosure. These options affect your credit rating less than a Foreclosure will.
- Sell The Home: If there is sufficient equity in the property, you may be able to receive more for your property than what is due on the mortgage loan.
- Assumption: With this option, you would sign over the property to another person. That person would then take possession of your home, and take over making the payments.
- Pre-Foreclosure Sale: This option may allow you to sell your property for an amount less than what is necessary to pay off your mortgage loan.
- Deed In Lieu Of Foreclosure: This option may allow you to voluntarily "give back" the property to your Lender without further damaging your credit.