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Step 1
Request a short sale. Distressed homeowners may find a buyer for their property. But due to falling home values, they're unable to receive their asking price. Talk with your mortgage lender and ask for a short sale. This provision lets you sell the home for less than you owe. To qualify, you'll have to submit a hardship letter, which describes your financial situation.
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Step 2
Advertise for renters. If unable to find a buyer for your home, consider finding a tenant for your property. You'll move out of the property. Meanwhile, the tenant moves in and makes the monthly payment. This maneuver stops an impending foreclosure, and a foreclosure will not appear on your credit report.
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Step 3
Ask for a loan modification. Being behind on your mortgage payment likely disqualifies you for a mortgage refinance. However, you may be able to obtain a home loan modification. This provision is available to distressed homeowners, and lenders agree to modify the terms of your home loan. They'll either extend your loan term or lower the interest rate, which results in a lower mortgage payment.
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Step 4
Get a forbearance. Communication is the key in this situation. Rather than skip mortgage payments and ignore your lender's telephone calls, speak with your lender and explain your situation. If experiencing a temporary hardship, you might qualify for a forbearance, in which the mortgage lender suspends monthly payments for a specified time period.
