As an Iowa homeowner, do you struggle to make your mortgage payments? If so, you’re not alone. The good news is that you can avoid foreclosure with different mortgage relief options available. In this blog post, we’ll cover some of the most common options so you can choose what’s right for you. Keep reading to learn more.
Getting Started
The first step toward getting mortgage relief is to communicate with your lender and explain your financial situation. Lenders are often willing to help homeowners who find themselves unable to make their regular monthly payments. A HUD-approved housing counselor can assist you if you don’t know how to approach your lender or have questions regarding the process.
Mortgage Relief Options
You have many options when it comes to getting mortgage relief. Several programs are available to help you pay your mortgage, lower your interest rate, and shorten the term of your mortgage.
Mortgage Modification
If you are experiencing difficulties making payments, your mortgage loan terms may be modified. A mortgage modification involves negotiating a new repayment plan with your lender that is more suitable for your current financial situation. It may even be possible to negotiate a lower interest rate with your lender.
Forbearance
Forbearance agreements may be available when you are suffering temporary financial hardship. With a set period of reduction or no payments, you can get back on your feet financially.
Principal Reduction
A principal reduction may be available if your mortgage exceeds the value of your home. This would reduce your loan balance to match your home’s current market value.
Loan Refinancing
You might be able to refinance your mortgage at a lower interest rate if you’re having trouble paying it. Your loan payments will be easier to repay if you can reduce them.
Pre-foreclosure Sale
Pre-foreclosure sales, or short sales, occur when the property is sold for less than its mortgage balance. Payment of the debt is made with the sale proceeds.
Deed in Lieu of Foreclosure
In the event you are unable to sell your home or reach an agreement with your lender regarding a loan modification, you can deed your home back to the lender in lieu of foreclosure.
Mortgage Relief Programs in Iowa
Homeowner Assistance Fund (HAF)
The Iowa Homeowner Assistance Fund was set up in the wake of the COVID-19 pandemic to assist homeowners facing financial difficulties. This program offers homeowners up to $25,000 in assistance.
Eligibility Requirements
This program is only available to those who have experienced financial hardship due to the Coronavirus pandemic.
You must also meet the following qualifications:
- Be at least 30 days’ late payments on mortgages, contract sales, manufactured homes, or property taxes due.
- Have a household income no higher than 150% of the median income of the local area or 100% of the national median income.
- Own and occupy the home as a primary residence in Iowa
How to Apply
You can apply for the program here. A mortgage statement, housing-related documents, and proof of your financial hardship may also be required.
Foreclosure and Its Impact
It is important for homeowners to understand how Iowa foreclosure works and what its consequences are in order to avoid it. Your lender may foreclose on your home if you fall behind on your mortgage payments. Moreover, foreclosure can adversely affect your credit score, so you should avoid it as much as possible.
Avoid 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!
