If you’re one of the many Tennessee homeowners who have difficulty making mortgage payments, you might be wondering what relief options you have. Fortunately, there are a number of programs that can help you get back on track.
This blog post will provide an overview of some of the most popular options. So if you’re struggling to make your mortgage payments in Tennessee, read on for information about the programs that may be able to help.
How to Get Started
In order to obtain mortgage relief, you must inform your lender of your financial situation. Almost all mortgage lenders are happy to assist homeowners who cannot afford their mortgage payments. A HUD-approved housing counselor can also help you if you’re not sure what to say to your lender or if you’re not sure how to approach them.
Mortgage Relief Solutions
A variety of options are available for mortgage relief. Through various programs, you can lower your interest rate, reduce your payments, and modify the term of your mortgage.
You may qualify for a principal reduction if your mortgage exceeds your home’s current value. The current market value of your home would then determine how much your loan balance would be reduced.
In the event that you are having trouble making your mortgage payments, you may have the option of changing the terms of your loan. A mortgage modification involves negotiating a new repayment plan with your lender. In some cases, your lender may even be able to lower your interest rate.
Financially distressed homeowners often have access to forbearance agreements. Payments decrease or stop as you gain control of your finances.
There may be an option for you to refinance your mortgage with a lower interest rate if you’re having trouble making payments. You will be able to repay your loan more easily if your payments are lower.
A short sale means selling a property for less than the mortgage balance. With the proceeds of the sale, the debt is repaid.
Deed in Lieu of Foreclosure
Deeding your home back to the lender in lieu of foreclosure is an option if you cannot sell your home or reach a loan modification agreement.
Mortgage Relief Programs in Tennessee
Homeowner Assistance Fund (HAF)
The Tennessee Homeowner Assistance Fund program assists homeowners who have fallen behind on their mortgage payments and related housing expenses due to COVID-19. Homeowners may qualify for funding up to $40,000 per household.
When approved, the program will make payments directly to the servicer, county, homeowner association, or other appropriate housing entity.
People eligible for the program must have experienced a qualified financial hardship after January 21, 2020.
You must also meet the following requirements:
- Be delinquent on your mortgage.
- Own and occupy the Tennessee property as a primary residence.
- Have an income below or at 150% of the National Median Income.
How to Apply
Foreclosure and Its Consequences
Foreclosure in Tennessee should be understood, as well as its consequences, in order to prevent it. Lenders may foreclose on your home if you fall behind on your mortgage payments, a process that can take up to six months. Your credit score can be negatively impacted by foreclosure, so you should avoid it as much as possible.
Prevent Foreclosure in Tennessee with Favor Home Solutions’ Save My Credit Program
Get in touch with us today for a simple solution to avoid foreclosure! At Favor Home Solutions, we’re 100% committed 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 to get started!