Do you find it difficult to make your mortgage payments as an Oklahoma homeowner? If so, you’re not alone. There are several mortgage relief options available to you if you want to avoid foreclosure. 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.
How to Get Started
In order to obtain mortgage relief, you should first contact your lender. Frequently, lenders will assist homeowners who cannot make their monthly payments. A HUD-approved housing counselor will be able to inform you of how to approach your lender if you have any questions.
Mortgage Relief Options
There are many ways to obtain mortgage relief. Many programs exist to help you reduce your interest rate, shorten your mortgage term, and repay your mortgage.
Your mortgage loan terms may be modified if you are having trouble making payments. When you modify your mortgage, you and your lender determine a repayment plan that meets your financial needs. There are cases where your lender may even be able to lower your interest rate.
Forbearance agreements may be obtainable during temporary financial hardships. Payments can be reduced or stopped for a set period of time to help you regain financial stability.
If your payments are difficult to meet, you may be able to refinance your mortgage. Reducing your loan payments will make repayment more manageable.
The term short sale means selling a house for less than the mortgage balance. As a result, the debt is repaid with the proceeds of the sale.
Principal reductions are available when your mortgage exceeds the value of your home. In this way, your loan balance reflects your home’s value.
Deed in Lieu of Foreclosure
In lieu of foreclosure, you can deed your home back to the lender if your home cannot be sold or a loan modification is not possible.
Mortgage Relief Programs in Oklahoma
Homeowner Assistance Fund
The Oklahoma Homeowner Assistance Fund offers financial assistance to income-eligible households experiencing financial hardship due to COVID-19. The program offers up to $35,000 in relief for delinquent homeowners.
How it Works
If eligible, you may receive support with the following:
- Reinstating a delinquent mortgage
- Assistance with mortgage payments for reinstated homeowners
- Deferred mortgage payments, partial claims, or principal reductions
- Delinquent property tax
- Restoring homeowner’s insurance after delinquency or cancellation
- Delinquent Homeowners Association (HOA) charges
In order to qualify, you must be experiencing financial hardship caused by the Coronavirus pandemic after January 21, 2020.
You must also meet the following criteria:
- Be a United States citizen or show proof of a green card
- Earn no more than 100% of the area median income or under 150% of the area median income for socially disadvantaged homeowners
- Be an owner and occupant of a primary residence in Oklahoma
- Be 30 days delinquent, enrolled in a forbearance plan, or entered or completed a loan modification
- Have a mortgage that is secured by an instrument issued by the government or by an entity sponsored by the government, or financed by a nonprofit, bank, credit union or mortgage company that follows widely accepted practices in mortgage lending and mortgage servicing that are monitored by the Consumer Federal Protection Bureau.
How to Apply
You can apply for the program here. You may also be required to provide documents regarding your mortgage, housing, and financial hardship.
Foreclosure and Its Aftereffects
To avoid foreclosure in Oklahoma, homeowners should understand how it works and its consequences. If you fall behind on your mortgage payments, your lender may foreclose on your home. You should also avoid foreclosure if you can, since it will negatively affect your credit rating.
Avoid Foreclosure in Oklahoma with Favor Home Solutions’ Save My Credit Program
If you’re looking for the quickest and best way to avoid foreclosure, our team is here for you! At Favor Home Solutions, we’re passionate about 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!