Are you a homeowner in California struggling to make your mortgage payments? You’re not alone. Thankfully, there are a number of mortgage relief options available to you. In this blog post, we’ll discuss some of the most common options and help you figure out which one is right for you. Keep reading to learn more.
The first step in obtaining mortgage relief is communicating with your lender and explaining your financial position. Many lenders are prepared to deal with homeowners who are having difficulties making their payments. If you’re unsure what to say or how to approach your lender, you can get free assistance from a HUD-approved housing counselor.
The Most Common Types of Mortgage Relief
There are many mortgage relief options available in California. Some of these programs offer help with making your mortgage payments, while others can help you get a lower interest rate or mortgage term.
A mortgage modification is an agreement between you and your lender to change the terms of your mortgage. This could involve extending the term, reducing the interest rate, or changing the type of mortgage from an adjustable-rate mortgage to a fixed-rate mortgage.
Forbearance is an agreement between you and your lender to suspend or reduce your mortgage payments temporarily. This option is typically used when homeowners experience a temporary financial hardship, such as a job loss or medical emergency.
Principal reduction lowers the amount owed on your mortgage to make your payments more manageable.
Refinancing your mortgage can help you get a lower interest rate and monthly payment. It can also help you switch from an adjustable-rate mortgage to a fixed-rate mortgage or vice versa.
A pre-foreclosure sale, also known as a short sale, is when you sell your home for less than the amount you owe on your mortgage.
Deed in Lieu of Foreclosure
With a deed in lieu of foreclosure, you deed your home back to the lender in exchange for the mortgage debt being forgiven.
What Are The Mortgage Relief Programs Available in California?
The mortgage relief programs available in California can help you keep your home, get a lower interest rate, or avoid foreclosure. Some of the most common programs are listed below.
Homeowner’s Bill of Rights
The California Homeowners Bill of Rights is a set of laws that protects homeowners facing foreclosure. These laws prohibit mortgage servicers from engaging in certain practices, such as dual tracking.
California Mortgage Relief Program
With the California Mortgage Relief Program, homeowners can receive federal Homeowner Assistance Funds to catch up on past-due housing payments and property taxes. The program is free, and the funds do not need to be paid back.
How Do I Know If I’m Eligible for Mortgage Relief Assistance in California?
Eligibility for mortgage relief assistance in California depends on a number of factors, including your financial situation and the type of mortgage relief you’re seeking. To find out if you’re eligible for assistance, you can contact your lender or a HUD-approved housing counseling agency.
However, some of the common requirements include:
- Being a homeowner that currently owns and occupies the California property as a primary residence.
- Being a homeowner that only owns and occupies one property.
- Having a mortgage that’s past due for $80,000 or less at the time of application.
How Do I Apply for Mortgage Relief Assistance in California?
If you’re interested in applying for mortgage relief assistance in California, you can contact your lender or a HUD-approved housing counseling agency or visit their corresponding websites.
What Are The Benefits of Receiving Mortgage Relief Assistance in California?
There are many benefits to receiving mortgage relief assistance in California. Mortgage relief can help you keep your home, get a lower interest rate, or avoid foreclosure.
How Does Foreclosure Work in California, and What Are The Consequences of It Happening to My Family or Me?
If you’re behind on your mortgage payments, your lender may start the foreclosure process. Foreclosure is a legal process that allows your lender to repossess your home if you default on your mortgage. The consequences of foreclosure can be severe, so it’s essential to understand the process and your rights before it happens. For example, foreclosure can show up on your credit report for up to seven years, making it challenging to get loans in the future.
Avoid Foreclosure with Favor Home Solutions’ Save My Credit Program
At Favor Home Solutions, we want to help you protect your credit and get back on your feet with a quick and easy solution! Our ‘Save My Credit’ Program takes over your mortgage payments so you can prevent foreclosure from showing up on your credit report or having to list your home for sale. No fees, no gimmicks, or obligations. Contact us today!