Overview of Bank Workout Solutions

In your plan to stop foreclosure, working out a repayment plan with your lender should be your first and best option. A workout program is designed to give you extra time to pay back the amount of money you are behind, while also making your regular monthly payment.

Relying on just this method of becoming current on your mortgage, however, should not be the only option you are pursuing. Negotiating an agreement with your lender may take several weeks, and you do not want to lose valuable time while waiting for a decision from your lender. Especially if they determine you do not qualify for a repayment plan, you want to work on several other options along with this one. You may also use the specific tactics that we have had success with in delaying your sale or reducing your payoff in conjunction with other options to save your home.

There are a variety of programs that you may qualify for that can help you get back on track with your mortgage. Some of them may be offered directly by your lender, others are offered by HUD (The US Department of Housing and Urban Development), the FHA (Federal Housing Administration), or VA (Veterans Administration). The most common programs are a forbearance agreement, mortgage modification, partial claim, pre-foreclosure sale, and deed-in-lieu of foreclosure.