Are you a homeowner in Idaho struggling to make your mortgage payments? If so, you’re not alone. Thankfully, different mortgage relief options are available to help you get back on track and avoid foreclosure. In this blog post, we’ll go over some of the most common options so you can decide which one is right for you. Keep reading to learn more.
Getting Started
Getting mortgage relief begins with communicating with your lender and explaining your financial situation. When homeowners are unable to make their monthly payments, lenders are often willing to help. A HUD-approved housing counselor can assist you if you’re not sure how to approach your lender or have questions regarding the best way to do so.
Types of Mortgage Relief Available
There are many alternatives that can give you mortgage relief. You can get mortgage payment assistance, lower interest rates, and short mortgage terms through a number of programs.
Mortgage Modification
The terms of your mortgage loan may be modified if you have difficulty making payments. During a mortgage modification, you negotiate a new repayment plan with your lender that is more suitable to your current financial situation. In some cases, you may even be able to negotiate a lower interest rate with your lender.
Forbearance
When you suffer a temporary financial hardship, forbearance agreements may be available to you. It gives you some breathing room to get back on your feet financially while making reduced or no payments for a set period of time.
Principal Reduction
If you owe more than the current value of your home, you may be eligible for a principal reduction. As a result, your loan balance would be reduced to match your home’s current market value.
Loan Refinancing
If you’re having trouble paying your mortgage, you might be able to refinance it at a lower interest rate. If your loan payments can be reduced, you’ll be able to repay them more easily.
Pre-foreclosure Sale
Pre-foreclosure sales, also known as short sales, occur when the property is sold for less than the amount owed on the mortgage. Using the sale proceeds, the debt is paid off.
Deed in Lieu of Foreclosure
Deeding your home back to the lender in lieu of foreclosure is an option if you are not able to sell your home or reach an agreement with your lender regarding a loan modification.
Mortgage Relief Programs in Idaho
Homeowner Assistance Fund (HAF)
In the wake of the COVID-19 pandemic, the Idaho Homeowner Assistance Fund was created to assist homeowners who have fallen behind on their mortgage payments or housing-related expenses. Eligible homeowners can get up to $50,000 with this program.
Eligibility Requirements
In order to qualify for this program, you must have experienced financial hardship after January 21, 2020, as a result of the Coronavirus pandemic.
You must also meet the following qualifications:
- Be within the program’s income limits
- Be in forbearance or late on home or related payments
- Own and occupy a primary residence in Idaho
How to Apply
Register and apply here. In addition, you will need to provide mortgage statements, housing-related documents, and proof of your financial hardship.
Foreclosure and Its Consequences
In order to avoid foreclosure in Idaho, homeowners must understand how it works and what the consequences are. When you fall behind on your mortgage payments, your lender may foreclose on your home. Furthermore, foreclosure can negatively affect your credit score, so you should avoid it at all costs.
Protect Your Credit from Foreclosure with Favor Home Solutions’ Save My Credit Program
If you’re looking for a quick and convenient way to avoid foreclosure, we can help! At Favor Home Solutions, we’re dedicated 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 list your home for sale or get a foreclosure 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 today to get started!
