Allows the suspension of all or part of the monthly payment for a specified time period, based on servicer agreement.
Gives the borrower the opportunity to catch up on missed payments by paying more than one full payment per month until the account is brought current.
Allows changes to the original terms of the promissory note, which may include any combination of the following: an adjustment to the interest rate; an extension of the term of the loan; or an increase in the loan amount by the amount past due.
Pre-foreclosure Sale (Short Sale)
Occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the servicer will release the lien secured by the property upon receipt of less money than is actually owed.
Deed-in-Lieu of Foreclosure
Allows the transfer of a property to the servicer without going through the foreclosure process. This is usually a “last resort” option and may follow other options, such as an attempt to sell the property.