Options to Stay in Your Home Overview
Stay in Your Home
If you are facing financial difficulties—whether they are short or long term—start exploring your options today.
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Even if you haven’t yet missed a mortgage payment, but are worried you might fall behind soon, now’s the time to take action. You may be eligible to refinance or modify your mortgage loan, lowering your payment and making it more affordable. Or, if you’ve missed payments and find yourself buried under late fees and past-due amounts, you may qualify for a temporary (or permanent) solution to help you get your finances back on track and avoid foreclosure. |
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Here’s an overview of possible options to help you stay in your home and avoid foreclosure:
A new loan—with new terms, interest rates and monthly payments—that completely replaces your current mortgage. Even if your home value has decreased or you owe more than your home is worth, you may be able to refinance your loan as part of the government’s Home Affordable Refinance Program (HARP).
- Make your payment more affordable by lowering your interest rate or adjusting the terms of your loan
- Creates no negative activity or event on your credit history
- Stay in your home and avoid foreclosure
An agreement between you and your mortgage company that lets you pay the past due amount—added on to your current mortgage payments—over a specified time period to bring your mortgage current.
- Resolve your delinquency
- Catch up on your past due payments over an extended period of time
- Less damaging to your credit score than a foreclosure
- Stay in your home and avoid foreclosure
An offer by your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specified period of time.
- Have time to improve your financial situation and get back on your feet
- Less damaging to your credit score than a foreclosure
- Stay in your home and avoid foreclosure
An agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc. You may also be eligible for the government’s Home Affordable Modification Program (HAMP) created to help struggling homeowners.
- May reduce your monthly mortgage payments to a more affordable amount
- Less damaging to your credit score than a foreclosure
- Stay in your home and avoid foreclosure
A program that allows you to temporarily lease your home. You first transfer the ownership of your home to the mortgage company (called a Deed-in-Lieu of Foreclosure) in exchange for a release from your mortgage loan and payments. You can then rent the property back—at an affordable rate—and remain in the home as a tenant.
- Resolve your delinquency and avoid foreclosure
- Stay in your home and neighborhood—no need to move or relocate
- Lease at current market rate rent for up to 12 months with a possible option to extend the term
- Pay no security deposit
- Assistance for relocation may be available at the end of your lease
- Start repairing your credit sooner than if you went through a foreclosure
- Get a Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (at least 7 years)
