Homeowner Options

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Homeowner Options

	Here are the most common options available to Homeowners as a means to avoiding Foreclosure. You must qualify for these options and each Lender has different requirements for qualification.

Forbearance:	If you are unable to make payments because of a temporary financial strain, your lender or Servicer may agree to grant a forbearance, during which payments on your loan are postponed. Your lender or Servicer may also agree to a forbearance if you are currently able to make payments, but not able to make up for previously unpaid payments.

Modification:	In a loan modification, a lender agrees to modify any or some of the terms of the mortgage. This is a process where an existing note is modified, but not cancelled. Changes may include: extend the term of the loan, change the monthly payments, change the interest rate, etc.

Deed in Lieu:	A Deed-In-Lieu of foreclosure is a voluntary conveyance of title in exchange for a discharge of debt. Note that your house must be free of other liens and you must have clear title in order to avoid a foreclosure on your credit report. You are basically voluntarily returning the property back to the lender.

Short Sale:	When the home is sold for the market value and the lender(s) accepts less than the full amount owed as payment for the debt.