Can't Pay Your Mortgage? A Guide to Dealing With Mortgage Crisis | Ep. 260

• Tiffany explains that mortgage companies prefer working with homeowners rather than pursuing foreclosure, as it's less work for them to keep you in the house.

They're there to help you and make sure that you can continue to live in the house more affordably.

• Equity is defined as the difference between what you owe on your mortgage and how much your house is currently worth—a key factor in several relief options.

• If you have equity, refinancing may lower payments. Tiffany shares her 2021 refinance experience and warns about complications like adding a spouse to the deed of trust.

Once I refinanced... it put my spouse at the time, his name on the deed of trust. And so that can complicate things.

• Forbearance allows deferring payments to the end of the loan. Tiffany shares her personal experience where the deferred amount became a lien rather than requiring immediate payment.

It did not affect my credit score in any way. It didn't report to my credit in any way.

• Modifications can extend loan terms to lower payments. Tiffany advises having a direct conversation with your mortgage provider to explore available options.

• A short sale occurs when selling for less than owed. The process requires lender approval and involves listing the property, though it impacts credit less severely than foreclosure.

• Foreclosure has severe, long-term credit consequences. Tiffany emphasizes exploring all other options first and seeking nonprofit support if foreclosure becomes necessary.

• Tiffany stresses the emotional toll of mortgage struggles and recommends seeking support from financial counselors who can provide an outside perspective on your situation.

Sometimes it's best that an outside person looking in, they have a different view of your situation because they're not in it.