Several homeowners in Indiana are having difficulty keeping up with their mortgage payments. If you’re one of them, you may be wondering if any help is available. Thankfully, several mortgage relief options are available to you to help you through this difficult time.
This post will explain everything you need to know about these programs. Additionally, we will provide you with contact information for organizations that can assist you with your application. There is hope, so don’t despair! Read on for more details.
Getting Started
The first step to getting mortgage relief is communicating with your lender and explaining your financial situation. Mortgage lenders are often willing to help homeowners who are unable to pay their monthly mortgage payments. A HUD-approved housing counselor will be able to assist you if you are not sure how to approach your lender.
Types of Mortgage Relief Available
Mortgage relief is possible through a variety of alternatives. A number of programs can help you reduce your mortgage payments, get lower interest rates, and shorten the term of your mortgage.
Mortgage Modification
If you have trouble making payments, your mortgage loan terms may be modified. With a mortgage modification, you negotiate a new repayment plan with your lender that is more suitable to your current financial situation. Your lender may even be able to lower your interest rate in some cases.
Principal Reduction
A principal reduction may be available if you owe more than the current value of your home. This would result in a reduction of your loan balance in accordance with your home’s current market value.
Forbearance
Forbearance agreements may be available to you if you are experiencing a temporary financial hardship. During this time, you make reduced or no payments while getting back on your feet financially.
Loan Refinancing
It might be possible to refinance your mortgage at a lower interest rate if you have trouble paying it. The lower your loan payments, the easier it will be for you to repay them.
Pre-foreclosure Sale
Pre-foreclosure sales, also called short sales, occur when the property is sold for less than the mortgage balance. The debt is paid off with the sale proceeds.
Deed in Lieu of Foreclosure
Deeding your home back to the lender in lieu of foreclosure can be an option if you are unable to sell your home or reach an agreement with your lender regarding a loan modification.
Mortgage Relief Programs in Indiana
Homeowner Assistance Fund (HAF)
The Indiana Homeowner Assistance Fund offers housing assistance to homeowners impacted by COVID-19. The program funds homeowner housing-related expenses, such as mortgages and property taxes.
Eligibility Requirements
This program is available to those who suffered financial hardship following the Coronavirus pandemic after January 21, 2020.
You must also meet the following qualifications:
- Earn less than or equal to 150 percent of the area median income.
- Own and occupy a single-family residence, condominium, two-family residence, three-family residence, or manufactured home in Indiana.
- Occupy the home as a primary residence in Indiana
How to Apply
Register and apply here. In addition, mortgage statements, housing-related documents, and proof of financial hardship may be required.
Foreclosure and Its Consequences
It is crucial that homeowners understand how foreclosure in Indiana works and its consequences to prevent it. Your lender may foreclose on your home if you fall behind on your mortgage payments and the process can take up to 150 days to be completed. Moreover, foreclosure has a negative impact on your credit score, so you should avoid it if you can.
Avoid Foreclosure in Indiana with Favor Home Solutions’ Save My Credit Program
If you’re looking for a simple and convenient way to avoid foreclosure, we can help! At Favor Home Solutions, we’re devoted 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 today to get started!
