Forebearance or Re-Payment Plan

If the issue that caused you to miss payments was temporary and you are not able to make a one-time reinstatement payment, you may be able to negotiate a forbearance or repayment plan.  If you do not have the means to repay all of the missed payments and legal fees, then this is another option that also reinstates the mortgage.  The lender may allow you to pay the missed amount over a period of time, or they may place the missed payments on the end of the amortization of the loan.

Mortgage Modification

In some cases where you have the means to afford your payments or very close to your mortgage payment, your mortgage company may qualify you for a mortgage modification.  You will have to qualify for a modification by sending in proof of income, and expenses.  If this option is available, it is an excellent option for you to keep you property.

Refinance

If there is significant equity in your home, you have stable income, and your credit has not been too badly damaged, you may be able to refinance.  This is typically a short term solution since the payments on the property will typically increase considerably due to the refinance.

Short-Refi

This is a relatively new option, but it does show just how far some mortgage companies and lenders are going to avoid foreclosing on properties.  This process involves the refinance of your home with a reduction in the principal balance, and often the interest rate as well.  You will have to qualify for this process both in shoring a hardship as well as showing the ability to payy the new mortgage through a fully documented qualification process.

Rent The Property

If your current mortgage payments are low enough, you may be able to rent your home for an amount that covers the mortgage payments.  With this option, it is important that the market rents cover all of the monthly expenses including property taxes, insurance, condo fees, and homeowner association fees.  Renting the property is risky because if the tenants miss a rent payment, then the financial distress has returned.

Sell The Property

If there is enough equity to sell your home, you may be able to sell and clear a profit.  Otherwise, you can sell your home as a short sale.  The lender will require documentation that you are facing a financial hardship and can no longer afford your mortgage payments.