Amerihope Alliance Legal Services truly understands the plight of homeowners struggling to keep up with their mortgage payments and facing foreclosure. This article is the first in a series that will help you as a homeowner familiarize yourself with important mortgage industry terms and processes.
REFINANCE: Mortgage refinance refers to renegotiating a current mortgage under new terms and conditions, and new rates. As a homeowner, you may wish to renegotiate to take advantage of lower interest rates, or to make sure you secure yourself from any sudden changes in the mortgage rates in the future. It involves paying off the existing loan for a new loan.
In our upcoming series, we will dive into Mortgage Refinancing and what you NEED to know
FORBEARANCE: For many struggling homeowners facing possible foreclosure, forbearance may be a viable option. Forbearance is an agreement between the homeowner and the bank/lender which delays the foreclosure. If the homeowner can catch up to his or her mortgage payments during a time frame clearly stated in the forbearance agreement, then foreclosure can be avoided. This is a perfect solution for homeowners facing temporary financial problems.
In our upcoming series, we will discuss whether or not you should request Forbearance, how it works and how to apply!
REINSTATEMENT: In some cases, mortgage can be reinstated even after the lender files the foreclosure. A borrower with a strong enough case can get mortgage reinstatement and can save their homes from being foreclosed.
Our series will explore reinstatement options and how a mortgage can be reinstated even after foreclosure suit is filed.
REPAYMENT PLAN: For homeowners who can afford their current mortgage, but cannot catch up on past due payment, repayment plans are the best option. A repayment plan involves spreading out the past due payments and adding it to the current mortgage payments, so that past dues can be paid over a period of several months.
Is Repayment the right option for you? This is what we’re going to review in the upcoming blog post series.
LOAN MODIFICATIONS: Any changes made to you loan payments can be considered as loan modifications. This is different from refinance because you do not take on a new loan, you just modify your current loan, and no credit check is needed for a modification. Loan modification is the go-to option when a homeowner cannot keep up with the mortgage payment and is not eligible for refinance.
Want to learn how you can qualify and benefit from a loan modification? We’ll cover this topic throughout our series.
If you are a homeowner, and your current mortgage is giving you sleepless nights, you have come to the right place. This article is just the tip of the iceberg, stay with us in our series by signing up to our list so you can get immediate notification when we’ve added a new article to this Mortgage Industry series.
Brief Overview of Important Terms Used in the Mortgage Indus