If you are one of the many Washington homeowners struggling to make mortgage payments, you might wonder what relief options you have. The good news is that there are a number of programs that can aid you in getting your finances in order.
This blog post will provide an overview of some of the most popular options. So if you’re struggling to make your mortgage payments in Washington, read on for information about the programs that may be able to help.
How to Get Started
You must first inform your lender of your financial situation in order to obtain mortgage relief. Mortgage lenders are usually willing to assist homeowners who cannot afford their mortgage payments. A HUD-approved housing counselor may also be able to help you if you are unsure how to approach your lender.
Mortgage Relief Solutions
A variety of options are available for mortgage relief. Through various programs, you can lower your interest rate, reduce your payments, and modify the term of your mortgage.
Principal Reduction
If your mortgage exceeds your home’s current value, you may be eligible for a principal reduction. Your loan balance would be reduced based on the current market value of your home.
Mortgage Modification
If you are having trouble making your mortgage payments, you may have the option of changing your loan terms. A mortgage modification involves negotiating a new repayment plan with your lender. In some cases, your lender may even be able to lower your interest rate.
Forbearance
Financially distressed homeowners often have access to forbearance agreements. Payments decrease or stop to allow you to gain control of your finances.
Loan Refinancing
There may be an option for you to refinance your mortgage with a lower interest rate if you’re having trouble making payments. You will be able to repay your loan more easily if your payments are lower.
Short Sale
A short sale means selling a property for less than the mortgage balance. With the proceeds of the sale, the debt is repaid.
Deed in Lieu of Foreclosure
Deeding your home back to the lender in lieu of foreclosure is an option if you cannot sell your home or reach a loan modification agreement.
Mortgage Relief Programs in Washington
Homeowner Assistance Fund (HAF)
The Washington State Homeowner Assistance Fund assists eligible Washington homeowners who have fallen behind on their mortgage because of pandemic hardship with individual support and federal relief funds.
As part of the program, you will be connected with a housing counselor who can provide you with free and confidential support to prevent foreclosure. The housing counselor will advocate on your behalf with lenders and others as well as assist you in obtaining funding. A homeowner may qualify for a grant of up to $60,000, depending on their circumstances.
Eligibility Requirements
The Hotline provides support to all Washington homeowners. A variety of factors determine eligibility for HAF funding, including pandemic hardship. A housing counselor will assist you in determining which assistance is most helpful for you when you call the Hotline.
How to Apply
Call the Washington Homeownership Hotline at 1-877-894-4663 for further information.
Washington State Department of Financial Institutions
The Washington State Department of Financial Institutions provides Washington homeowners with counseling and assistance.
Call 1-877-RING-DFI (746-4334) to get assistance on how best to contact your mortgage servicer and learn more about your options.
Foreclosure and Its Consequences
Foreclosure in Washington should be understood, as well as its consequences, in order to prevent it. Lenders may foreclose on your home if you fall behind on your mortgage payments, a process that can take up to six months. Your credit score can be negatively impacted by foreclosure, so you should avoid it as much as possible.
Prevent Foreclosure in Washington with Favor Home Solutions’ Save My Credit Program
Get in touch with us today for a simple solution to avoid foreclosure! At Favor Home Solutions, we’re 100% committed 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 go through the home selling process or get a foreclosure mark 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 to get started!
