Do you find it difficult to make your mortgage payments as a New Mexico homeowner? If so, you’re not alone. Several mortgage relief options are available to help you avoid foreclosure. 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
Your lender should be contacted before you begin the process of getting mortgage relief. In many cases, lenders are willing to help homeowners who are unable to make their monthly payments. A HUD-approved housing counselor can give you advice if you have questions about how to approach your lender.
Mortgage Relief Options
There are many ways in which you can obtain mortgage relief. 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 and your lender agree on a new repayment plan that matches your financial situation. There are cases where your lender may even be able to lower your interest rate.
Forbearance
Forbearance agreements may be available during temporary financial hardships. In order to regain financial stability, you can reduce or stop payments for a set period of time.
Principal Reduction
When your mortgage exceeds the value of your home, principal reductions are available. As a result, the value of your home will be reflected in your loan balance.
Loan Refinancing
You might be able to refinance your mortgage at a lower interest rate if your payments are difficult to meet. Reducing your loan payments will make repayment easier.
Short Sale
The term short sale refers to the sale of a house for less than the mortgage balance. As a result, the debt is repaid with the proceeds of the sale.
Deed in Lieu of Foreclosure
In the event that your home cannot be sold or a loan modification cannot be reached, you can deed your home back to the lender in lieu of foreclosure.
Mortgage Relief Programs in New Mexico
New Mexico State Assistance for Housing Relief
The New Mexico Homeowner Assistance Fund offers housing grants to income-eligible households experiencing financial hardship due to COVID-19.
To maintain or reduce delinquency in housing costs, households may receive up to $10,000 from the New Mexico Homeowner Assistance Fund. Payments are made directly to the mortgage or loan servicer, escrow company, or other housing providers.
Eligibility Requirements
This program is only available to those suffering from financial hardship due to the Coronavirus pandemic after January 21, 2020.
You must also meet the following qualifications:
- Earn less than 150% of the area median income or 100% of the national median income, whichever is higher
- Be an owner and occupant of a primary residence in New Mexico
- You must not exceed $417,000 on the original loan balance or the conforming loan limit in effect at the time the loan was originated
How to Apply
You can apply for the program here. You may also be required to provide documents regarding your mortgage, housing, and financial hardship.
New Mexico Home Fund
The New Mexico Home Fund can help homeowners cover mortgage and utility bills up to $20,000. As a result of financial hardship caused by the pandemic, New Mexico offers homeowners this assistance to avoid foreclosure.
How to Apply
To apply, you need to submit the following documents:
- Government-issued identification, such as a driver’s license
- Proof of household income, such as three recent pay stubs
- Documents to verify past due amounts (e.g., insurance invoice, tax statement)
You or your loan servicer may need to provide additional documentation depending on the type of assistance you are requesting.
You can apply for this program here.
Foreclosure and Its Impact
To avoid foreclosure in New Mexico, homeowners should understand how it works and the consequences of foreclosure. If you fall behind on your mortgage payments, your lender may foreclose on your home. It is also important to avoid foreclosure as much as possible because it will negatively affect your credit score.
Avoid Foreclosure in New Mexico with Favor Home Solutions’ Save My Credit Program
If you’re looking for a simple and convenient way to avoid foreclosure, our team is here for you! At Favor Home Solutions, we’re devoted 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!
