If your finances are due to temporary problems, such as illness or unemployment for example, you might want to consider short term fixes to help you stay out of any foreclosure proceedings.
Temporary solutions for short term financial situations:
Reinstatement:
Your lenders may be willing to consider “reinstating” your loan if you can make arrangements to pay back your overdue payments in one lump sum by a specific date. A forbearance plan often accompanies this option.
Forbearance:
This is well worth looking into as your mortgage holder may be willing to provide a temporary reduction or suspension of your mortgage payments for a short period, such as 3 or 4 months. Once this time period elapses, theywill work with you to create a repayment plan for your loan. You may qualify for forbearance if you have experienced a reduction in income (as an example, you have become unemployed) or you have experienced an increase in living expenses (higher medical bills). You will have to show that you will be able to stick with the new payment plan.
Repayment plan:
Sometimes you may be able to work out a plan where you pay your regular monthly payments and add an additional amount to your payment until you catch up on the payments you missed. This will likely incur additional finance charges so try to pay back your back payments as quickly as possible.
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