Mortgage assistance options to consider

If you’re reading this article, you may be looking for support with your mortgage payments — if this is true, you’ve come to the right place. Know that there are tools to help support homeowners experiencing financial challenges. Whether you’re seeking payment assistance on your mortgage or looking at outside resources for assistance, let’s take a look at the resources that can help you keep your home.

What is mortgage assistance?

Mortgage assistance means getting support on a mortgage, often in response to financial changes due to personal or economic circumstances. This could include a modification or, in some cases, a temporary pause on expected payments. It could also include options that allow you to exit the home, like a short sale or deed in lieu of foreclosure.

I can’t afford my house payment. What are my options?

If you can’t afford your house payment, as we mentioned above, there are programs that might help. There are additional options your lender may offer intended to help you manage your monthly mortgage payments. Let’s take a deeper dive:

Forbearance plans

With a forbearance plan, you won’t have to make monthly mortgage payments, or they’ll be reduced, for a set period. At the end of that period, the entire past due balance will be due. Note that, until this lump sum is paid, the loan is considered past due, and your credit score may be affected. If you can’t make the lump-sum payment, your lender may discuss other options with you to bring your loan current.

Mortgage modification

If you’re looking for a more permanent modification to your mortgage terms, your lender may be able to change your loan’s term length or interest rate. A trial period may be required, and not all modifications result in a lower payment.

Government Assistance

Sometimes the federal government steps in to help homeowners keep up with their mortgage payments. For example, federal aid programs were established at the start of the COVID-19 pandemic to assist people facing financial hardship. Available programs can be found on government-sponsored websites, and applications may be separated by state. Note that there are typically eligibility requirements.

In summary

Mortgage assistance is the support given to eligible borrowers who are having trouble making their mortgage payments. Forbearance, reinstatement and even government programs are just a few types of mortgage assistance. If you find yourself in need of mortgage assistance, know there are options out there to support you.