Recent economic challenges have caused several Texas homeowners to fall behind on their mortgage payments. If you feel identified, you’re likely wondering how you can get help during this difficult time. You have several mortgage relief options to choose from.
This post will provide you with all the information you need about these Texas programs. We will also provide you with contacts for organizations that can assist you in applying for assistance. It is important to remember that there is hope! Read on to learn more.
It’s best to speak with your lender about your financial situation in order to get mortgage relief. Many lenders are willing to help homeowners whose monthly payments are difficult to make. A HUD-approved housing counselor may be able to offer you helpful advice if you’re not sure what to say to your lender.
Types of Mortgage Relief Available
There are many mortgage relief options available in Texas. Loan terms can be modified, interest rates can be lowered, and mortgage payments can be made through several programs.
- Principal Reduction: If your home is worth less than your current mortgage balance, you may be able to lower your principal. The market value of your home would subsequently be reflected in your loan balance.
- Mortgage Modification: If you have problems making your mortgage payments, you may qualify for a loan modification. When you modify your mortgage, you will be able to negotiate a new payment plan that suits your current financial situation. It may even be possible to negotiate a lower interest rate in some cases.
- Loan Refinancing: If you are having difficulty making your mortgage payments, you may be able to refinance at a lower interest rate. If you qualify, you may be able to lower your monthly payments.
- Forbearance: A forbearance program may be available to you in case of temporary financial difficulty. For a period of time, reducing or eliminating your payments may allow you to regain financial stability.
- Short Sale: Short sales occur when a house is sold below its mortgage balance. The proceeds of the sale are used to repay the debt after the sale.
- Deed in Lieu of Foreclosure: Deeding your home back to the lender in lieu of foreclosure is an option if you are unable to sell or modify your loan.
Mortgage Relief Programs in Texas
Homeowner Assistance Fund
The Texas Homeowner Assistance Fund Program assists Texas homeowners who are behind on their mortgage or related payments after January 21, 2020, as a result of the COVID-19 pandemic.
How it Works
The program assists Texas homeowners with qualified hardships to pay past due mortgage payments and, in some cases, to advance up to three months of future payments. Homeowners may qualify for funding up to $65,000 per household.
People eligible for the program must have experienced a qualified financial hardship after January 21, 2020, such as lost income or increased expenses.
You must also meet the following criteria:
- Be a homeowner with a primary residence in Texas
- Be behind on one or more of the following payments: property taxes, property insurance, mortgage loans, or homeowner’s association fees.
- Have an income that is equal to or less than 100% of the area’s median income or 100% of the national median income, whichever is higher.
How to Apply
Foreclosure and Its Consequences
Foreclosures in Texas are complex processes that need to be grasped by homeowners facing the process. The loss of your home could occur if you fail to repay your mortgage for more than 120 days.
Foreclosures should be avoided at all costs to maintain a good credit score. In addition, foreclosure can devastate communities, and criminal activity may increase if property values decline.
Avoid Foreclosure in Texas with Favor Home Solutions’ Save My Credit Program
If you’re about to lose your house to foreclosure and don’t know what else to do, we’re here for you! At Favor Home Solutions, we aim to restore your peace of mind and protect your credit. With our ‘Save My Credit’ Program, we’ll take over your mortgage payments, so you don’t have to list your home for sale or worry about 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!