For many homeowners in Vermont, paying the mortgage can be a significant financial burden, especially during difficult economic times. Fortunately, there are several mortgage relief options available to help homeowners avoid foreclosure and keep their homes. In this blog post, we’ll discuss the mortgage relief options available to homeowners in Vermont, including government links to helpful resources and tips to apply for these programs.
Mortgage Relief Options in Vermont
- Mortgage forbearance: Mortgage forbearance is a temporary pause or reduction in mortgage payments. This program is designed to help homeowners facing financial hardship, such as job loss, illness, or natural disasters. The mortgage payments are suspended for a period of time, after which the homeowner must resume payments.
- Loan modification: Loan modification is a permanent change to the terms of the mortgage to make it more affordable for the homeowner. This may include reducing the interest rate, extending the loan term, or forgiving a portion of the principal balance.
- Refinance: Refinancing allows homeowners to replace their current mortgage with a new one that has better terms and a lower interest rate. This can result in lower monthly payments and potentially save the homeowner thousands of dollars over the life of the loan.
- Mortgage assistance programs: There are several mortgage assistance programs available in Vermont, including the Vermont Housing Finance Agency (VHFA) and the Homeownership Preservation Foundation. These programs provide financial assistance, counseling, and other resources to help homeowners keep their homes.
Consequences of Foreclosure
Foreclosure can have serious consequences for homeowners, including:
- Damage to credit score: Foreclosure can significantly damage your credit score and make it difficult to obtain credit in the future.
- Loss of property: Foreclosure may result in the loss of your home and any equity you have built up.
- Legal problems: Foreclosure can result in legal problems if there are issues associated with the foreclosure process or the property.
Tips to Apply for Mortgage Relief Programs
- Contact your mortgage servicer: If you’re having trouble making your mortgage payments, contact your mortgage servicer to explore your options for mortgage relief.
- Gather your financial information: Before applying for mortgage relief programs, gather all of your financial information, including your income, expenses, and debts.
- Be persistent: Applying for mortgage relief programs can be a lengthy and complicated process, but don’t give up. Be persistent and follow up with your mortgage servicer regularly.
Helpful Government Links
If you’re a homeowner in Vermont and are struggling to make your mortgage payments, there are several government links that you may find helpful:
- Vermont Housing Finance Agency: https://www.vhfa.org/homeownership/help-for-homeowners
- Vermont Department of Financial Regulation: https://dfr.vermont.gov/banking/mortgage-assistance-programs
- U.S. Department of Housing and Urban Development – Vermont: https://www.hud.gov/states/vermont/homeownership/foreclosure
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