Forbearance

This is the plan everybody is talking about since the passage of the CARES Act.  It's an agreement with your lender to temporarily delay regular payments.  It is not a payment holiday.  When the forbearance period ends, the postponed payments will be due all at once, or in a payment plan spread out over time.  Caution: this could have an impact on your ability to refinance your loan later.  Watch this video for more information.

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Modification

This is a legal process that alters the terms of your loan. 

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Deferment

This is a plan that allows you to postpone your payments for a time then pay them at the end of your regular loan term. "Deferment" and "Forbearance" are often used interchangeably, but they are different. A deferment is more beneficial for many because it eliminates the need to make up multiple payment at the end of a short postponement period. Deferments are not available from all servicers.  

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Cash Out Refi 

If you still have enough income to qualify, accessing equity in your home by refinancing may be a good option for lowering your payments, consolidating debt, and/or creating a cash cushion. A refi will be especially beneficial if current rates are lower than those on your existing financing.

Click here for more information on refinance.  

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Reverse Mortgage

If you are age 62 or older, you maybe able to live in your home and not make a mortgage payment.  Also known as a HECM, this loan allows seniors to keep their primary residence and not make a payment for as long as they live in the home.  In some cases, the equity in your home can also provide you with a monthly income or a one-time cash payment, or a combination of both.  Click here for more details.

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