Mortgage Relief Options: How to Apply for Assistance During Financial Hardship
July 7, 2018
If you’re struggling to keep up with mortgage payments, mortgage relief programs can provide temporary assistance. Here’s how to navigate the process.
Federal Assistance Programs
The Homeowner Assistance Fund (HAF) is a federal program designed to prevent foreclosure. It provides financial aid to help homeowners cover mortgage payments, utility bills, and other housing-related expenses. Visit your state’s housing agency to learn about specific HAF assistance available.
Loan Modification
Loan modification involves adjusting the terms of your mortgage to make payments more affordable. Common modifications include extending the loan term, lowering interest rates, or reducing the principal. Contact your lender to discuss modification options if you’re facing long-term financial difficulties.
Forbearance Plans
A forbearance plan temporarily suspends or reduces mortgage payments, allowing you time to recover financially. Many lenders offer forbearance, especially if you’re experiencing temporary hardship due to job loss or medical expenses. Note that missed payments will eventually need to be repaid.
Steps to Apply
Contact Your Lender – Reach out to your mortgage servicer as soon as you encounter financial issues.
Provide Necessary Documentation – Prepare documents showing your financial hardship, such as income statements or medical bills.
Understand Repayment Terms – Before agreeing to any relief, ensure you understand how missed payments will be repaid.
Mortgage relief programs provide critical support to help you retain homeownership, so don’t hesitate to explore available options.