Anyone can fall on hard financial times. However, this doesn’t mean that your mortgage can go unpaid. If you are having difficulty paying your mortgage, what can you do to stop your lender from foreclosing on the property?
1) Ask For A Loan Modification
A loan modification allows a borrower to modify the terms of their current mortgage. In most cases, the lender will reduce the interest rate or extend the length of the mortgage. The goal is to create a lower monthly payment that is easier for the homeowner to handle. However, the lender does not have to agree to a modification just because you ask for one.
2) Apply For A Short Refinance
The short refinance is similar to a loan modification in several ways. However, unlike a loan modification, some of the past due debt is forgiven. Whatever is left is rolled into the rest of the mortgage and refinanced at a lower interest rate. This can be an option for those who have equity in their home and may be eligible to refinance regardless of their current financial situation.
3) Work Out A Repayment Plan
The repayment plan allows the homeowner to pay extra each month until the loan is current. For example, if you missed a $3,000 mortgage payment, you can pay $4,500 a month over the next two months to make up for the missed payment. If you are suffering through a long-term debt, it may be beneficial to work with a payday advance company, such as Power Finance Texas among others, to get the money that you need to cover your mortgage payment.
4) Consider Filing For Bankruptcy
Anyone who files for bankruptcy should understand that this is a nuclear option. It will have serious consequences for your credit moving forward. On the other hand, it will halt foreclosure proceedings against you. Your creditors may be willing to offer you a better deal as opposed to watching you have your debt completely discharged in bankruptcy. If you file for Chapter 13 bankruptcy, you are given up to 60 months to repay any amount owed that is past due.
Staying in your home should be a top priority regardless of your current financial situation. Anyone who struggling to pay their mortgage should look for help wherever possible. In most cases, your lender will be willing to work out an alternate payment plan to keep you in your home while ensuring that the lender gets their money back.
About the Author: Angela Prickette is a recent college graduate. She works for herself as a freelance writer and photographer. Her favorite activities include, skiing, rock climbing, and personal fitness.