What are your options if you’re past due on your mortgage payments?
Any number of unexpected life circumstances might lead to difficulty meeting financial responsibilities, like making your mortgage payment. Borrowers dealing with mortgage hardship may have multiple options to get their mortgage payments back on track, such as revising the loan terms or coming up with a new payment plan. Below we discuss the different options you may have:
- Mortgage forbearance: Mortgage forbearance is a temporary option if you are experiencing a short-term hardship like unemployment, serious illness, disability or a natural disaster. Though it won’t help you settle the delinquency on the mortgage, it can provide payment relief as you navigate the hardship and come up with a long-term plan.
- Reinstatement: If you have missed payments in the past and are in a situation where you can make them moving forward, the fastest way to get your mortgage back on track is by reinstating your loan. This is a one-time lump sum payment of the full past due amount, along with any late fees and other penalties.
- Loan Modification: If a challenge has caused you to fall a couple of months behind on your mortgage payment, one option your servicer may look into is a loan modification. The purpose of a modification is to bring your account back to a current status, possibly resulting in a more affordable payment. Your servicer will do this by changing one or more terms of your loan. This could include an interest rate reduction or loan term extension.
These are just a few of the options that you may have. It’s best to contact your mortgage lender to see what options you have. If you are facing financial difficulties and need help or advice, contact our office for a consultation. We can help you put together a plan to move forward and make the easy as smooth as we can. You can reach us at (206) 408-8158. We look forward to helping you!
19803 1st Avenue S.
Normandy Park, WA 98148
T (206) 408-8158
F (206) 374-2810
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