Is it hard for you to make your mortgage payment as a Utah homeowner? If so, you’re not alone. If you want to avoid foreclosure, you have several 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.
How to Get Started
Your lender should be contacted first in order to obtain mortgage relief. When borrowers are unable to pay their monthly payments, lenders will often assist them. A HUD-approved housing counselor will be able to inform you of how to approach your lender if you have any questions.
Mortgage Relief Options
Obtaining mortgage relief is possible in a number of ways. You can reduce your interest rate, modify your mortgage term, and repay your mortgage with the help of many 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 come up with a repayment plan that suits your financial situation. There are cases where your lender may even be able to lower your interest rate.
Forbearance
It may be possible to obtain forbearance agreements during times of temporary financial hardship. Regaining financial stability can be accomplished by reducing or stopping payments.
Refinancing
In cases where you are having difficulty meeting your mortgage payments, you may be able to refinance your mortgage. By reducing your payments, you will be able to repay your loan more easily.
Short Sale
The term short sale refers to the sale of a house for less than the mortgage balance. This results in the sale proceeds being used to repay the debt.
Principal Reduction
Mortgages that exceed the value of the home may qualify for principal reductions. This way, your loan balance is updated to reflect your home’s value.
Deed in Lieu of Foreclosure
In lieu of foreclosure, you can deed your home back to the lender if your home cannot be sold or a loan modification is not possible.
Mortgage Relief Programs in Utah
Mortgage Assistance Program
Salt Lake City Corporation, Taylorsville, Sandy, and South Jordan have provided CDCU with funding to provide temporary mortgage assistance to households impacted by the COVID-19 pandemic or facing other hardships.
Eligibility Requirements
Salt Lake City Municipal Residents
If you have lost your income or been financially impacted, you may be eligible for one to three months of mortgage payments up to $5,000. Those with incomes below 60% of the area median income (AMI) may qualify for a grant, while those with incomes over 60% of the AMI may qualify for a 2% low-interest loan. Amounts given to each household will be determined by need; not all households will receive $5,000.
Sandy Residents
A homeowner who has lost income or been otherwise financially affected by the pandemic may apply for one to three months of mortgage payments up to $5,000 if they fall below 80% of the Area Median Income (AMI). Depending on household needs, CDCU will determine how much each household receives; not every household will receive $5,000.
How to Apply
Call (801)-994-7222 for more information about this program.
Homeowner Assistance Fund
The Homeowner Assistance Fund was created to help homeowners who experienced pandemic-related financial hardship before or after January 21, 2020.
How to Apply
The Utah Homeowner Assistance Fund is currently under development and not yet accepting applications. You can check for updates and availability here.
Foreclosure and Its Repercussions
To avoid foreclosure in Utah, homeowners should understand how it works and its consequences. A lender may foreclose on your home if you fall behind on your mortgage payments. It is also advisable to avoid foreclosure if possible since it will negatively affect your credit score.
Avoid Foreclosure in Utah with Favor Home Solutions’ Save My Credit Program
Our team is here for you if you’re looking for the quickest and best way to avoid foreclosure in Utah! At Favor Home Solutions, we’re passionate about 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!
