Whether you’ve lost your job, had a recent change in your health, or are experiencing another life changing event, you have options. If you’re starting to fall behind on your mortgage payments for any reason, please know there are many resources available to help get you back on track.
· Reach out to your lender:
If you haven’t done so already, reach out to your lender for help. Your lender may be able to provide you with a loan modification, forbearance plan, or provide other resources to support you with your financial hardship. It’s important to connect with your lender to find the best solution for your situation and to see what options are available to you.
· Reach out to a Housing and Urban Development (HUD)-approved housing counselor:
The Department of Housing and Urban Development (HUD) sponsors housing counseling agencies throughout the country to help homeowners struggling with making mortgage payments. Connect with a local housing counselor near you to help you make informed housing decisions, understand your housing options, facilitate communication with your lender, and ensure you find the best option for your situation.
Call (800) 569-4287 to find a housing counselor.
· Think about refinancing:
If you are paying high interest rates, refinancing can help you lower your monthly payments. A refinance essentially involves trading your current mortgage for a newer one, often with a different principal or interest rate. Your new lender will use the new mortgage to pay off the old one.
If you are interested in refinancing, we will do our best to subordinate to your new lender. You may work with any lender of your choice; however, it is important to be aware that not all lenders will fund a loan with an equity sharing agreement on the title. If you would like, you may reach out to us for a list of lenders who have previously agreed to a new loan with a Unison agreement on title.
You have entered into a forbearance program with your mortgage lender, in which your payments have been temporarily postponed. This period gives you the significant opportunity to avoid foreclosure and strategize on how to continue forward.
Below, you will find links to various resources that may be of use to smoothly transition back into your monthly mortgage payments. Exiting a forbearance program can be overwhelming, but it’s important to plan for what comes next. Our goal is to provide you with resources to help guide you through the process of exiting your forbearance program and the future.
· Stay connected with your lender
It’s important to keep in contact with your lender so they are up to date regarding your financial situation. They should already be in touch with you when you approach the end of your forbearance program. Talk to your lender about repayment options if you’re not able to pay back everything all at once.
Below are other resources that may help guide you through exiting your forbearance. Please note that some of these resources may only apply to certain people, loans, or situations.
Know your options when exiting forbearance - CFPB
Foreclosure actions are initiated by a lender when the borrower defaults–in other words, fails to make payments–on their mortgage. If you are unable to pay the amount needed to bring the loan up to date, the lender might pursue foreclosure proceedings and sell the property in question to account for the money owed.
At Unison, we want to do everything we can to help you avoid foreclosure. Please see the resources below for more guidance, and also note that some of these resources may only apply to certain people, loans, or situations.
You may decide that selling your home to prevent foreclosure is your best option. A real estate agent can help you list your home on the open market and obtain the best value for your home. Their knowledge and expertise will be able to guide you through the process and educate you on recent sales in your area.
We know this is a stressful time; however, we want you to make an informed decision and we’re here to help along the way. When you decide to sell, please be sure to reach out to our Home Partnership team for more information regarding what information Unison needs to process your sale.
You may consider talking to a credit counselor. Credit counselors can help you analyze your finances and help find ways to improve your situation. Credit counseling organizations, such as the members of the National Foundation for Credit Counseling, offer free or low-cost services for people who are struggling financially.
Connect and learn more about credit counseling: 800-388-2227
If you are not currently behind in your mortgage payments, but situations arise that may affect your future ability to keep up, you can take preemptive action to begin saving money now. Here are some tips and resources that could help.
· Shop around for a lower homeowners insurance premium; you may find that bundling it with the same company as your auto insurance saves you money.
· Check the property assessor's website to see whether the properties of similar homes near you are assessed, or have been recently sold, for less. If so, you could be eligible for a tax reassessment.
· Check with your energy provider for programs and opportunities that trim monthly expenses.