Your mortgage servicer might offer the following options as an alternative to foreclosure:
Forbearance
This option temporarily suspends payments, allowing you time to make up the shortfall. If an agreement is reached and you are able to meet its terms, the lender should not take foreclosure action against you.
Repayment Plan
A servicer might be willing to spread the owed amount over several future payments until the loan is caught up.
Loan Modification
A servicer might be able to modify your existing loan to allow you a more manageable monthly payment. Although this may increase the loan amount over the life of the loan, the monthly payments would be more affordable.
Refinance
If there is sufficient equity remaining in the property, a servicer might consider refinancing your loan. In this instance, missed payments would be calculated into the new loan balance.
Partial Claim
If you have an FHA loan and meet HUD’s guidelines, you may be eligible for a Partial Claim, which is an interest-free loan designed to help homeowners reinstate a delinquent loan. This would be an additional loan to your original mortgage, and would be paid back either after the original mortgage is paid off or the property is sold.
Forgiving a Payment
Although extremely rare, a servicer may sometimes forgive a missing payment provided you agree to then remain current on your mortgage from that point on. This option is unlikely, but does occur.
