Can I Get Help With My Mortgage?

Debt Counseling

Debt counseling programs are ideal for homeowners who are struggling with mortgage payments but have not actually missed payments yet. Counseling services work with borrowers to examine their financial situations closely and offer advice on how to deal with debt and avoid credit issues. Many counseling services help borrowers make new budgets to manage income and pay off debt, reaching new levels of financial security. Counseling services are offered by both nonprofit organizations and government programs.

Lenders can also be a source of help when dealing with troublesome mortgages. Many lenders are willing to consider some type of mortgage modification rather than experience the loss of time and profit that a foreclosure would bring. Some lenders are willing to stop required payments for at least several months to give borrowers a chance to get back on their feet financially. Others may agree to lower interest rates or combine late payments back into the loan to make the debt burden easier to manage.

There are many government programs offered by both state and federal organizations to help homeowners struggling with their mortgages. These programs change, end and are updated consistently, so homeowners should contact lenders or counseling organizations about what programs they may currently qualify for. These programs tend to offer refinancing or loan modification options that result in easier loan payments for borrowers who bought their home using a government-based loan or took out a mortgage in a certain time period.

If homeowners are desperate, there are also ways to get rid of the mortgage entirely. A short sale is a common alternative to a foreclosure and allows the homeowner to sell the house with the help of the lender, using the proceeds to pay back the mortgage. A deed in lieu of foreclosure transfers ownership of the property directly to the lender in exchange for removal of mortgage debt. Homeowners with serious debt issues may also consider bankruptcy as a way to get a fresh start.