What can I do if I am having problem paying my loan?

There are different options available, if you are having problem in paying the loan, which are as follows:

1. Deed-in-lieu of foreclosure: Since, foreclosure damages your credit; you may transfer the ownership of your property to the lender to
   
   • Satisfy the obligation of repaying the balance due on the defaulted loan, and
     
   • Avoid the credit problems associated with regular foreclosure.
     
   
   
2. Forbearance Plans: It is the lender's postponement in foreclosure because you have made satisfactory arrangements to pay the overdue mortgage amount in arrears.
   
   
3. Modification: If you are recovering from some financial problem and now have an income level lower than it was before, your lender may agree to change the original terms of your mortgage without requiring you to refinance.Changes may include a reduction in the interest rate or change in the loan type or longer maturity date. Unpaid interest may be added to the loan balance.
   
   
4. Pre-Foreclosure Sale: It is a process where you are allowed to sell your property (if the appraised value of your property is at least 70 percent of the amount you owe) for an amount less than what is owed on it, to avoid foreclosure. This sale (price has to be atleast 95 percent of the appraised value) fully satisfies your debt.The sale may not produce enough proceeds to pay out the loan but the lender will save the costs of foreclosing and selling.
   
   
5. Repayment Plan: It is a verbal agreement between you and the lender, where you agree to make additional payments to pay down past due amounts, while still making regularly scheduled payments.
   
   
6. Partial claim: You may be able to get an interest-free loan from HUD in order to get your mortgage current. This option has special qualification criteria.
   
   
7. Workout Assumption: If you have a qualified purchaser who will take title in exchange for assuming the mortgage, the lender may allow it.