If you’re feeling the financial pinch, you’re not alone. In fact, 47% of Americans say they don’t have an extra $400 to spare at any given moment. The loss of a job, a medical emergency or any number of unexpected hardships can put you in a financial bind, which may make paying your mortgage tougher than usual.

But there is help available. There are a number of options to consider if you’re concerned about making timely mortgage payments:

Reach out to your lender

While it may seem counterintuitive in this situation, contacting your lender is actually the first place to turn. Your lender is an expert and will work with you to develop a solution that meets your needs and fits your circumstances. Opening a line of communication with your lender is essential to understand the options available to you. The sooner you reach out, the better.

Refinance your mortgage

One option your lender might discuss with you is a refinance. In many cases, refinancing your mortgage can save you money on interest payments, especially with current interest rates so low. There are several refinancing options available for which you may qualify.

Apply for a mortgage modification

If refinancing isn’t the right route then, a mortgage modification might work for you..

A mortgage modification changes the terms of your loan. It can be a temporary or permanent change to your interest rate, term or monthly payment. These modifications are available specifically for people experiencing financial hardship. You must meet certain criteria, and not all borrowers are eligible for loan modifications.

One specific mortgage modification is the Making Home Affordable Program. If your home loan originated before January 1, 2009 and you meet the eligibility criteria, this program may offer a solution. Note that the program is scheduled to end on December 31, 2016.

Loan Forbearance

Sometimes a little leeway is all you need to get back on steady ground. If you don’t qualify for a refinance or mortgage modification, loan forbearance may be possible.

With a forbearance, your lender will temporarily lower or suspend your mortgage payments for a specific time period. These payments are usually moved to the end of your loan for repayment. If you don’t expect your hardship to last long, this could be the right option for you and your lender. Remember that certain criteria apply and not all borrowers are eligible for forbearance.

More Resources to Help

Recently Ditech and HLP, a non-profit organization, entered into an agreement to help distressed homeowners who are eligible for the Federal Housing Finance Agency’s (FHFA) new Principal Reduction Modification Program. Ditech’s approach includes outreach and assistance through HLP’s platform. The platform puts HUD-approved non-profit housing counselors together with Ditech’s mortgage servicing operations, enabling counselors to help homeowners who qualify for the program.

Hard Times Happen

Let’s face it, financial hardship can happen to anyone. Taking action quickly can often remedy the situation, and give you a sense of relief. Getting to know your options in advance can make all of the difference, helping you make your mortgage payments with confidence.

If you still have questions about your options, call 1-800-700-9212 to reach a ditech Home Loan Specialist. We’re ready to help.

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