Mortgage Debt Options

Missed mortgage payments are not something to be ignored. Whether you are simply behind on payments or under risk of foreclosure, dealing with mortgage debt is challenging. There are several options for resolving mortgage debt problems, some of which may be more or less beneficial depending on your financial situation.

Mortgage Debt Solutions

In many cases, you can avoid foreclosure by applying for a loan modification, or you may be able to negotiate a repayment plan with the lender. You may also be able to refinance your mortgage to obtain a lower rate or longer term. If you are facing foreclosure, you may qualify for a short sale or deed–in–lieu of foreclosure. A short sale, or “deed in lieu of foreclosure,” is a process by which the lender agrees to accept a lower sale price for your home in exchange for avoiding foreclosure. This is usually a good option for someone who wants to keep their home, but is unable to pay their mortgage. It is a good option for you if you have negative equity (the value of your home is less than the remaining balance of your mortgage loan). A short sale is also a good option if you have sufficient savings and other assets to absorb the loss. A short sale can help you avoid foreclosure and may help you obtain a clean credit report. A short sale will not, however, completely resolve your mortgage debt problem.

You could also refinance your home to obtain a lower interest rate and payment. This may be an option if you owe more on your mortgage than your home is worth, and you do not qualify for a short sale or deed–in–lieu of foreclosure. The downside to refinancing is that you will still have a mortgage on your home, and you will be responsible for paying the new loan. If you are struggling to make your mortgage payments, you should call your lender immediately and discuss your options.

You may be able to avoid foreclosure by applying for a loan modification, or you may be able to negotiate a repayment plan with the lender.A loan modification is a change in your loan terms to help you avoid foreclosure. To apply for a loan modification, you should contact your lender directly. If you are behind on your mortgage payments and your lender will not work with you to modify your loan, you may be able to sell your home before it is foreclosed on and repay the loan balance owed to your lender. If you are concerned about your ability to pay your mortgage payments, you should contact your lender and make arrangements to meet your obligations. You should also contact your lender if you have any questions about loan modifications or other options to avoid foreclosure.

Contact a foreclosure and mortgage debt specialist at our office today. One of our experienced Houston bankruptcy lawyers can help you learn more about your mortgage debt options and work to keep you in your home.