Falling behind on your mortgage can be stressful, but there are alternatives to foreclosure. If you have defaulted on your home loan, you may be able to find a way out without losing your home. Read on to learn how Stlbankruptcyfirm.com can save your home and your credit rating from foreclosure.
Start a Payment Plan
If you are in arrears with your mortgage, many lenders have repayment plans. These plans allow you to gradually repay what you owe, rather than having to pay it all at one time. However, if you don’t have the cash to make payments, this arrangement won’t help much. If you have an impending foreclosure, you may need to ask for an extension and get it in writing.
Have a Short Sale
If you owe more than your business is worth, you’re said to be “upside down” on your loan. You may feel as if there’s no way out, but a short sale can help you avoid foreclosure. It involves selling your property for what it’s worth and negotiating with your lender to forgive the rest of the debt. However, short sales are complex and shouldn’t be undertaken without the help of a business bankruptcy attorney.
Get a Loan Modification
A loan modification is just what it sounds like; your loan’s terms are changed to make the loan more manageable. During modification negotiations it’s important to have the help of a real estate attorney, and a successful modification can help you stay out of foreclosure.
Refinancing
With a modification or repayment plan your payments will increase, which isn’t much help when money is tight. If this describes you, you may be able to lower your monthly payment. If the current home loan rate is lower than what you are paying, you can refinance to adjust the rate or you can switch to a fixed rate loan.
Re-Amortize the Loan
Another way to lower your monthly mortgage payment is to re-amortize the loan. The amount you’re behind is added to the loan amount, and a new loan is offered for a new term. The new loan may have higher or lower payments depending on interest rates.
Foreclosure can be a stressful and frightening time for home owners, but you don’t have to deal with it alone. With the help of a foreclosure or business bankruptcy attorney, you can get a short sale, a refinance, or a loan modification to stay out of foreclosure.
Visit Sean C. Paul Attorney at Law to know more.
