If you are one of the thousands of Alabama homeowners struggling to keep up with your mortgage payments, you may be wondering what relief options are available to you. The good news is that there are a number of programs available that can help you get back on track. This blog post will provide an overview of some of the most popular options. So if you’re struggling to make your mortgage payments, read on for information about the programs that may be able to help.
How Do I Get Started?
The first step in getting relief is contacting your lender and explaining your financial situation. Many lenders are willing to work with homeowners who are struggling to make their payments. If you can show that you have a viable plan for getting back on track, your lender may be willing to offer you a loan modification or other type of assistance.
What Are The Different Types of Mortgage Relief Available in Alabama?
There are several different types of mortgage relief available in Alabama. Some of the most popular options include:
- Loan modification: A loan modification is when your lender agrees to change the terms of your loan to make it more affordable for you. This can involve reducing the interest rate, extending the loan term, or both.
- Forbearance: Forbearance is when your lender agrees to let you temporarily stop making payments, or make lower payments than usual, while you get back on your feet financially. This option is typically only available if you can show that you have a temporary financial hardship (such as job loss or medical bills) that has caused you to fall behind on your payments.
- Refinance: Refinancing is when you take out a new loan to pay off your existing mortgage. This can be a good option if you can get a lower interest rate or more favorable terms than you currently have.
- Pre-foreclosure sale: A pre-foreclosure sale is when you sell your home for less than the amount you owe on your mortgage and use the proceeds from the sale to pay off the loan. This can be a good option if you’re facing foreclosure and want to avoid it.
- Short sale: A short sale is when you sell your home for less than the amount you owe on your mortgage, and the proceeds from the sale go to your lender to pay off the loan. This can be a good alternative if you want to avoid foreclosure.
- Deed in lieu of foreclosure: A deed in lieu of foreclosure is when you transfer the ownership of your home to your lender in exchange for the lender forgiving your debt.
What Are The Mortgage Relief Programs Available in Alabama?
There are many mortgage relief programs available in Alabama. Some of the most popular programs include:
- The Home Affordable Modification Program (HAMP)
- The Making Home Affordable program (MHA)
- The Alabama Housing Finance Authority (AHFA) Mortgage Assistance Program
- Mortgage Assistance Alabama (MAA)
How Do I Know If I’m Eligible for Mortgage Relief Assistance in Alabama?
Each program has its own eligibility requirements, so you’ll need to check with the program provider to see if you qualify. However, in general, most programs require that you:
- Be a homeowner in Alabama
- Owe more on your mortgage than your home is worth
- Be struggling to make your mortgage payments
- Have sufficient income to support the new payment amount
How Do I Apply for Mortgage Relief Assistance in Alabama?
Similarly, each program has its own application process, so you’ll need to check with the program provider for more information. However, in general, most programs require that you:
- Complete an application form
- Submit financial documents (such as tax returns and pay stubs)
- Attend a counseling session
- Sign a contract
What Are The Benefits of Receiving Mortgage Relief Assistance in Alabama?
There are a number of benefits to receiving mortgage relief assistance in Alabama. Some of the most popular benefits include:
- Avoiding foreclosure
- Lowering your monthly payments
- Reducing the amount you owe on your mortgage
- Improving your credit score
- Getting out of debt
How Does Foreclosure Work in Alabama, and What Are The Consequences of It Happening to My Family or Me?
If you’re behind on your mortgage payments and don’t take action to catch up, the lender can start the foreclosure process. This means they’ll file a lawsuit against you and try to take your home away. If they’re successful, you’ll be evicted, and your credit score will take a hit. The foreclosure process can also be very stressful and expensive, so it’s best to avoid it if at all possible.
Favor Home Solutions’ Save My Credit Program: A Quick & Easy Alternative
At Favor Home Solutions, we understand what it takes to get back on track. Our ‘Save My Credit’ Program takes over your mortgage payments to help protect your credit! No need to worry about foreclosure showing up on your credit report or listing your home for sale; we’ve got you covered! If you’d like to learn more about how we can help you, get in touch with us today!