Forbearance
A temporary reduction or suspension of your payments based on your financial situation. This may be possible if an increase in living expenses or reduction in income has occurred. Lenders may also consider it if you can show you have an upcoming source of funds to bring the balance current.
Loan Modification
The years of the loan could be extended or the interest reduced in order to make the monthly payments more affordable.
It can include:
Making a adjustable-rate mortgage (ARM) into a fixed-rate mortgage
Adding missed payments back into your entire balance
Extending the length of the loan in years, therefore your monthly payments are less
Sell Your Home
Put the house on the market for sale. Be sure to evaluate and understand your current mortgage balance, outstanding housing expenses, any liens and judgments and selling closing costs in order to know what your selling price to be to satisfy all debts.
Deed-in-lieu
You lender may allow you to voluntarily “give back” the key to the property. It can be less damaging to your credit report, however you won’t keep your home.
Refinance
Can be similar to a loan modification; inquire with your lender or a better recommended lender for a refinance. Keep in mind that there are incurred expenses each time a refinance is done. Contacting a bank directly can save you on those added expenses and closing costs. Reinstatement
Usually occurs after a forbearance agreement. If you have fallen behind on your mortgage and now have the missed payments, your lender can offer you a reinstatement to get caught up by giving a lump sum to begin you loan again.