Keep Your Home

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REFINANCE 

A new loan—with new terms, interest rates and monthly payments—that completely replaces your current mortgage.

• Make your payment more affordable by lowering your interest rate or adjusting the terms of your loan
• Creates no negative activity or event on your credit history
• Stay in your home and avoid foreclosure 

REPAYMENT/FORBEARANCE 

An agreement between you and your mortgage company that lets you pay the past due amount—added on to your current mortgage payments—over a specified time period to bring your mortgage current.

• Resolve your delinquency
• Catch up on your past due payments over an extended period of time
• Less damaging to your credit than a foreclosure 
• Stay in your home and avoid foreclosure

TEMPORARY FORBEARANCE 

An offer by your mortgage company to temporarily suspend or reduce your monthly mortgage payments for a specified period of time.

• Have time to improve your financial situation and get back on your feet
• Stay in your home and avoid foreclosure

LOAN MODIFICATION 

An agreement between you and your mortgage company to change the original terms of your mortgage—such as payment amount, length of loan, interest rate, etc.

• May reduce your monthly mortgage payments to a more affordable amount
• Less damaging to your credit than a foreclosure 
• Stay in your home and avoid foreclosure

Bankruptcy 

**Pay the lender back in a Chapter 13 

A short sale is the sale of a home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds.

• Eliminate or reduce your remaining mortgage debt
• Assistance for relocation may be available
• Start repairing your credit sooner than if you went through a foreclosure 
• May be able to get another Fannie Mae mortgage to purchase a home sooner (in as little as 2 years) than if you went through foreclosure (up to 7 years)