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First and foremost, if you can keep your mortgage loan current, do so. But if you find you are unable to make your mortgage loan payments, you might qualify for a mortgage loan workout option. Check with your lender to see which option may be available. Some options may not apply to your mortgage loan if it is not insured by FHA.

If your problem is temporary - call your lender to discuss these possibilities:

  • Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.

  • Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your mortgage loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus, investment, insurance settlement, or tax refund.

  • Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up.

     

If it appears that your situation is long-term or will permanently affect your ability to bring your account current - call your lender to discuss options:

  • Mortgage Loan modification: If you can make payments on your mortgage loan, but don't have enough money to bring your account current or you can't afford your current payment, your lender may be able to change the terms of your original mortgage loan to make the payments more affordable.

  • Your mortgage loan could be permanently changed in one or more of the following ways:

    • Adding the missed payments to the existing mortgage loan balance.

    • Changing the interest rate, including making an adjustable rate into a fixed rate.

    • Extending the number of years you have to repay .

  • Partial Claim: If your mortgage loan is insured, your lender might help you get a one-time interest-free mortgage loan from your mortgage loan guarantor to bring your account current. You may be allowed to wait several years before repaying this loan.

  • You qualify for an FHA Loan partial claim if:

    • Your mortgage loan is between 4 and 12 months delinquent.

    • You are able to begin making full mortgage loan payments again .

When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage loan current. You must sign a promissory note, and a lien will be placed on your property until the promissory note is paid in full.

The promissory note is interest-free and is due when you pay off the first mortgage loan or when you sell the property.