There are a variety of programs available to help you resolve or avoid delinquency and possibly keep your home. If you have missed or inevitably will miss payments, you may qualify for a temporary (or permanent) solution to help you get your finances back on track. Depending on your circumstances, staying in your home may not be possible. However, a short sale or deed-in-lieu of foreclosure may be a better choice than foreclosure. Here are some options:
Pay the total amount you owe in a lump sum payment by a specific date. If you can show you have funds that will become available at a specific date in the future, this will bring your mortgage current allowing you to avoid foreclosure. This may follow a forbearance plan as described below.
Pay back your past-due payments together with your regular payments over an extended period of time. This allows you to catch up on late payments without having to come up with a lump sum.
Special forbearance plan (temporary option)
Make reduced mortgage payments or no mortgage payments for a specific period of time. This gives you time to improve your financial situation and get back on your feet.
Receive modified mortgage terms to make your payments more affordable or manageable. Successfully making reduced payments during a three to four month trial period is required. This option creates a solution to a long-term or permanent hardship.
Sell your home for less than the balance remaining on your mortgage, and pay off all (or a portion of) your mortgage balance with the proceeds. A short sale may be an option if you owe more on your home than it’s worth or have not been able to sell your home at a price that covers what you still owe.
Deed-in-lieu of foreclosure
Voluntarily transfer the ownership of your property to the Bank in exchange for a release from your mortgage loan and payments. Options are available (sometimes with a relocation incentive) to help you leave the home immediately; stay in the home for up to three months; or lease the home for up to one year. This option is only possible when there are no other liens on the property.