If you’re at risk of losing your Pennsylvania residence to foreclosure, you may have some options such as refinancing your mortgage. If this isn’t possible and the situation is urgent, you can try some of the following to avoid completely losing your home.
Work something out with your lender
If you experienced a temporary setback that rendered you unable to pay your mortgage for a little while, you can talk to your lender about setting up a repayment plan. This will help you get back on track and not require you to pay the past-due amount in a lump sum. Make sure to give your lender enough information so that you both can honestly evaluate what you are able to pay.
Request a loan modification
You might be eligible for a loan modification. This would modify the terms of your current loan if you can’t refinance it, and it can help by making your monthly payments more affordable. This will allow you to stay in your home though it may mean that you have more time added to your loan term. The good news is that you might also get a lower rate along with being able to make lower payments.
Apply for a forbearance
A mortgage forbearance makes it possible for some borrowers to place a hold on their monthly mortgage payments. You’ll be given a specified time at which point the loan servicer will expect that you’re going to resume your monthly payment schedule with your regular payments and what you’ve accrued during the forbearance period. You can discuss a repayment plan or pay this all as a lump sum.
Prepare a deed in lieu of foreclosure
A mortgage company may accept a deed in lieu of foreclosure. This is a voluntary transfer of your home ownership to your mortgage lender so that you no longer have the mortgage obligation. This option may allow you to relocate to more affordable real estate.
If your home is in danger of entering foreclosure, you have options that could allow you to keep it. It’s a good idea to explore all options to see which option works best for your situation.