When Suzy has lost her job and is struggling to make her mortgage payment, her lender may offer several options to help her stay in her home. Some common ways lenders may assist borrowers facing financial hardship include:
1. Loan Modification: Suzy might be eligible for a loan modification, which could involve adjusting the interest rate, extending the loan term, or temporarily reducing the monthly payment to make it more affordable.
2. Forbearance: Suzy could request a forbearance agreement, which allows her to temporarily suspend or reduce her mortgage payments. After the forbearance period, she may need to catch up on missed payments gradually.
3. Repayment Plan: Suzy and her lender may agree to a repayment plan, where she pays an additional amount each month to catch up on missed payments while maintaining her regular monthly mortgage payment.
4. Refinancing: Depending on Suzy's financial situation and creditworthiness, refinancing her mortgage to secure more favorable terms could be an option.
5. Assistance Programs: Suzy should inquire about government or lender-sponsored assistance programs that may provide financial relief, especially if her financial hardship is related to specific circumstances like job loss.
6. Sale of the Property: If Suzy cannot afford to keep the home, her lender may work with her on a short sale or deed-in-lieu of foreclosure, which can help her avoid the negative consequences of foreclosure.
It's important for Suzy to reach out to her lender as soon as possible to discuss her situation and explore these options. Communication is key to finding a solution that allows her to keep her home or minimize the financial impact of her situation.