mortgage. Your servicer may grant you forbearance if, for example, you recently lost your job, suffered from a disaster, or from an illness or injury that increased your health care costs. Forbearance is a type of loss mitigation. Foreclosure Foreclosure is when the lender or servicer takes back property after the homeowner fails to make mortgage payments. In some states, the lender has to go to court to foreclose on your property (judicial foreclosure), but other states do not require a court process (non-judicial foreclosure). Generally, borrowers must be notified if the lender or servicer begins foreclosure proceedings. Federal rules may apply to when the foreclosure may start. Hazard Insurance Lenders require Hazard Insurance, the portion of Homeowner's Insurance directly supporting the structure, not liabilities or content, so that the property they have an investment in is fully covered against catastrophic damage. The lender also wants to make sure that, as the borrower, you’re financially capable of paying down the mortgage in the event that the home is destroyed. Lenders generally require proof of homeowner’s insurance before clearing your file to close. HOA Dues Condo units, co-ops, or a home in a planned subdivision or other organized community with shared services, usually have monthly fees or Homeowners’ Association (HOA) dues. These fees are specific to the development. Condo, coop or HOA fees are usually paid separately from your monthly mortgage payment. Home Equity Line of Credit A home equity line of credit (HELOC) allows you to borrow against your home equity. Equity is the amount your property is currently worth, minus the amount of any mortgage on your
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