Do you struggle to make your mortgage payments as a Missouri homeowner? If so, you’re not alone. Avoiding foreclosure is possible through a variety of mortgage relief options. In this blog post, we’ll cover some of the most common options so you can choose what’s right for you. Keep reading to learn more.
Getting Started
Getting mortgage relief begins with communication with your lender. Many lenders are willing to assist homeowners who can’t make their monthly payments. A HUD-approved housing counselor can assist you if you don’t know how to approach your lender or have questions regarding the process.
Mortgage Relief Options
You can obtain mortgage relief in a number of ways. You can lower your interest rate, shorten your mortgage term, and pay off your mortgage through several programs.
Mortgage Modification
Your mortgage loan terms may be modified if you are having trouble making payments. When you modify your mortgage, you agree to a new repayment plan with your lender that is more suitable for your current financial circumstances. Your lender may even be able to lower your interest rate in some cases.
Forbearance
Forbearance agreements may be available in times of temporary financial hardship. For a set period of time, you can reduce or stop payments to regain financial stability.
Loan Refinancing
You might be able to refinance your mortgage at a lower interest rate if you are having difficulty making payments. Your loan payments will be easier to repay if you reduce them.
Principal Reduction
Principal reductions are available when your mortgage exceeds the value of your home. Your loan balance would therefore be adjusted to reflect your home’s current market value.
Short Sale
A short sale occurs when a house is sold for less than its mortgage balance. In this case, the sale proceeds are used to repay the debt.
Deed in Lieu of Foreclosure
If you cannot sell your home or reach an agreement with your lender regarding a loan modification, you can deed your home back to the lender in lieu of foreclosure.
Mortgage Relief Programs in Missouri
Missouri State Assistance for Housing Relief
The Missouri State Assistance For Housing Relief was established in the wake of the COVID-19 pandemic to offer homeowners a one-time mortgage reinstatement assistance, which is paid directly to the lender.
Eligibility Requirements
Only those suffering from financial hardship due to the Coronavirus pandemic after January 21, 2020, are eligible for this program. Structures that qualify include single-family homes and manufactured houses that are mortgaged as real estate.
You must also meet the following qualifications:
- Earn less than 150% of the area’s median income
- Occupy the Missouri property as their principal residence
How to Apply
You can apply for the program here. Documents relating to your mortgage, housing, and financial hardship may also be required.
Making Home Affordable
The Making Home Affordable program provides homeowners with valuable resources and free counseling when in need of mortgage assistance.
Foreclosure and Its Repercussions
To avoid foreclosure, homeowners should understand how Missouri foreclosure works and what its consequences are. Your lender may foreclose on your home if you fall behind on your mortgage payments. Furthermore, foreclosure can negatively affect your credit score, so you should avoid it as much as possible.
Avoid Foreclosure in Missouri with Favor Home Solutions’ Save My Credit Program
If you’re looking for a quick and convenient way to avoid foreclosure, we can help! At Favor Home Solutions, we’re dedicated to helping you regain your peace of mind and protecting your credit! Our ‘Save My Credit’ Program takes over your mortgage payments, so you don’t have to list your home for sale or get a foreclosure on your credit report.
You might even be able to pocket some money at the end! No fees, no gimmicks, and no obligations. Contact us today to get started!
