If you run into unexpected hardships and are unable to make a mortgage payment, the first thing you should do is to contact your lender.  They want to help you get caught up with your loan payments and have various programs to help.

Some of the ways in which you can make up back mortgage payments include:

•    Forbearance- this is when your lender is willing to let you have a little time off from payments in order to get caught up financially.  This is usually a good option if you lost a job and need time to start working at another place where you will have to wait for your first paycheck while catching up on other bills as well.  Once you get back on track you can make your back payments or make a payment plan to bring your loan current.

•    Payment plan- this is when your lender allows you to pay a little extra each month until the missed payments are paid.  You have to set this up directly with the lender.

•    Reinstatement- this is when you agree to pay back the entire amount that you own at a specific time.  This works well if you are able to make your current payments, and are expecting a lump sum of money in the near future like a commission bonus from work or a large tax return.

•    Insurance- if you have insurance on the loan that covers you in the case of loss of employment, illness, or death, then make a claim.

•    The FHA has a partial claim service.  This allows borrowers to take a one time loan without interest that will repay their missed mortgage payments.  This loan will not have to be repaid for years, and that gives the borrower time to save the money and increase their work wages over time so that they can afford to pay back the loan.

•    Change the terms of the loan.  Sometimes lenders are willing to lower interest rates, or extend the time of the loan in order to give the borrower the extra money they need to afford their monthly payment.

All of these are ways in which a borrower can keep their home, get out of default, avoid foreclosure, and repay their back mortgage payments.  For more information on the FHA and help avoiding foreclosure talk to us.