There’s no doubt that the current state of the Arizona real estate market is challenging for homeowners. If you’re struggling to make your monthly mortgage payment, you may be wondering what relief options are available to you.
This blog post will discuss some of the available mortgage relief programs and how they can help you. We’ll also provide some tips on how to apply for these programs. So if you’re feeling overwhelmed by your mortgage payments, read on for information on how to get some relief.
Where Do I Start?
The first step in getting mortgage relief is talking to your lender and explaining your financial situation. Many lenders are willing to work with homeowners who are struggling to make their payments. If you’re not sure what to say or how to approach your lender, you can contact a HUD-approved housing counselor for free assistance.
What Are The Most Common Types of Mortgage Relief?
There are several mortgage relief options available in Arizona. Some of these programs offer assistance with making your mortgage payments, while others can help you get a lower interest rate or mortgage term. The most common ones are listed below.
Mortgage Modification
A mortgage modification is a request from you to your lender to alter the terms of your loan in order for it to be more manageable for you. This could involve changing the interest rate, extending the term of the loan, 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 track. This option is usually only available if you’re facing a short-term financial hardship, such as a job loss or medical emergency.
Refinance
Refinancing is the act of taking out a new loan to repay your existing mortgage at a lower rate or under more advantageous terms. This might be an excellent alternative if you can obtain a cheaper interest rate or better terms than you have now.
Pre-foreclosure Sale
A pre-foreclosure sale occurs when you sell your property for less than the amount you owe on your mortgage and use the money to pay off the loan. This can be a viable option if you’re approaching foreclosure and don’t want to go through with it.
Short Sale
A short sale occurs when you sell your property for less than the amount you owe on your mortgage, and the money from the sale is used to pay off the debt. If you want to avoid foreclosure, this might be a good alternative.
Deed in Lieu of Foreclosure
A deed in lieu of foreclosure is a situation in which you trade the ownership of your house to your lender in exchange for the forgiveness of your debt.
What Are The Mortgage Relief Programs Available in Arizona?
The federal Making Home Affordable program offers several mortgage relief options for eligible homeowners. These options include the Home Affordable Modification Program (HAMP) and the Homeowner Assistance Fund (HAF).
How Do I Know If I’m Eligible for Mortgage Relief Assistance in Arizona?
The programs vary in terms of eligibility requirements, so you’ll need to verify with the program provider to see if you meet the criteria.
However, in general, most programs require that you:
- Be the owner-occupant of the property
- Have a mortgage that was originated on or before a specific date
- Be facing financial hardship
- Show proof of financial hardship
How Do I Apply for Mortgage Relief Assistance in Arizona?
If you think you may be eligible for mortgage relief assistance, the first step is to contact your lender or mortgage servicer and explain your financial situation. You’ll need to provide documentation of your income, assets, and debts. Once you’ve done that, your lender will determine if you’re eligible for a mortgage modification or other relief option.
What Are The Benefits of Receiving Mortgage Relief Assistance in Arizona?
Mortgage relief assistance can help you lower your monthly mortgage payment, making it easier to keep up with your mortgage and avoid foreclosure. Additionally, some mortgage relief programs can help you get a lower interest rate, saving you money over the life of your loan.
How Does Foreclosure Work and What Are Its Consequences?
Foreclosure is a process that allows your lender to take back your home if you default on your mortgage. In Arizona, foreclosure can happen through either a judicial or nonjudicial process.
If your home is foreclosed upon, you will lose your home and all the equity you’ve built up in it. Additionally, a foreclosure can stay on your credit report for up to seven years, making it difficult to get a new mortgage or other types of loan.
Favor Home Solutions’ Save My Credit Program Can Help
At Favor Home Solutions, we want to help you protect your credit with a quick and easy solution! Our ‘Save My Credit’ Program takes over your mortgage payments so you can avoid foreclosure showing up on your credit report or listing your home for sale; we’ve got you covered! No fees, no gimmicks, or obligations when you give us a call. Contact us today!
