Learn Different Approaches to Address Your Financial Challenges

A deed-in-lieu of foreclosure may help you avoid being personally liable for any amount remaining on the mortgage. If you live in a state in which you are responsible for any deficiency, which is a difference between the value of your property and the amount you still owe on your mortgage loan, you will want to ask your lender to waive the deficiency. The deed in lieu of foreclosure offers several advantages to both the borrower and the lender.

A Discounted Payoff can be one alternative for resolving issues involving delinquent debt. A discounted payoff (DPO) is the repayment of an obligation for less than the principal balance. In most cases of distressed debt discounted payoff, the lender takes a loss for the value of the contracted debt and interest that the borrower is no longer obligated to pay.

Forbearance is when your mortgage servicer, that's the company that sends your mortgage statement and manages your loan, or lender agrees not to exercise its legal right to foreclose on a mortgage, allowing the borrower to pause or reduce their payments for a limited period of time. Forbearance does not erase what you owe. You'll have to repay any missed or reduced payments in the future.

Loan modification is a change made to the terms of an existing loan by a lender. It may involve a reduction in the interest rate, an extension of the length of time for repayment, a different type of loan, or any combination of the three. If you are unable to pay your past due loan payments, but you can meet your monthly obligations, we may be able to make a Loan Modification by adding the delinquent escrow payments to your loan balance to bring your loan current. Your current mortgage interest rate must be within market guidelines. If you have any additional liens against your property, the lien holders must be willing to subordinate their interest to the new loan amount. 

A repayment plan is a structured way to make up your missed mortgage loan payments over a period of time. If you are behind on your mortgage payments, your lender or servicer may allow you to enter into a repayment plan. You must be able to make the monthly loan payment and pay an additional amount towards the past due amount each month until the loan is brought current. 

A short sale is the sale of a home for net proceeds less than the balance of the outstanding mortgage. A short sale must be approved by the mortgage lender because the lender will lose money, and be “short” the difference between the net proceeds of the sale and the mortgage loan amount.