How Mediation Can Help Save Your Home
How Can Mediation Help Save My Home?
Mediation can help you save your home by coming to a workout agreement with the mortgage company. These are a few ways that you may be able to save your home from foreclosure:
1) Loan Modification. This is when the mortgage company lowers your interest rate or changes other terms of your loan to lower your payment. Under the federal Home Affordable Modification Program, you may qualify for a loan modification that lowers your monthly payment to only 31% of your income.
2) Reinstatement. This means you catch up on your mortgage payments. You pay all your back mortgage payments plus the mortgage company’s lawyer fees and court fees. Then you go back to making your regular monthly mortgage payments.
3) Repayment Plan. This is when you agree to pay a little bit extra every month until you catch up on your mortgage payments. After you catch up on payments, you go back to making your regular monthly payment.
4) Forbearance. This is when the mortgage company gives you a lower payment or lets you stop making payments for a short time until you get back on your feet. After the forbearance is over you will begin making regular payments. You will still owe your back payments but the mortgage company will let you do a repayment plan after the forbearance or put the back payments on the end of your mortgage. You should only agree to forbearance if you know you will be making more money at the end of the forbearance period.
Even if you cannot save your home, mediation can still be worth it. In mediation you can agree to:
5) Short Sale. This is when the mortgage company agrees to let you sell your house for less than what you owe on your mortgage.
6) Cash for Keys. This means that you get some money in exchange for letting the mortgage company take your home. Cash for keys can help you pay to move your stuff or to put a deposit on an apartment.
7) Deed in Lieu. This is when you sign your property over to the mortgage company.
The mediator will work with you and the mortgage company to help you figure out your options.
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