Financial Hardship And Mortgage Loans: 3 Legal Options For Managing Monthly Payments

Struggling to pay your mortgage each month can create a significant amount of stress. Mortgage loans are designed to be repaid over many years, but your financial circumstances can easily change at any time after your mortgage loan is secured.

If you are having trouble handling your current mortgage payment, hiring an attorney to help you negotiate with your lender could help you avoid foreclosure.

1. An attorney can help you set up a repayment plan.

Missed mortgage payments can quickly start to add up. Paying your initial mortgage payment plus any back payments owed in full can be a financial hardship your family isn't capable of bearing. Hiring an attorney to help you set up a repayment plan with your lender will allow you to bring your mortgage current without creating additional financial stress.

A repayment plan is designed to spread the total cost of your missed mortgage payments out over several months instead of having the total amount due at once. You can eliminate what you back-owe a little at a time.

2. An attorney can help you secure a forbearance.

Temporary changes in your financial situation can create long-lasting problems if you are unable to pay your mortgage. If your financial circumstances have changed due to a job loss, a hospital stay, or other temporary factor, an attorney may be able to help you keep your mortgage current.

Experienced real estate attorneys know how to negotiate with mortgage lenders to arrange a temporary forbearance for their clients. This forbearance allows you to reduce or completely suspend your mortgage payments for a limited time without the threat of foreclosure. You can use the forbearance period to get back on your feet before you start making your mortgage payments in full once again.

3. An attorney can help you modify your loan.

If the changes in your financial situation appear to be long-term, then you might need to permanently lower your monthly mortgage payments in order to stay in your home. A real estate attorney can help you coordinate with your lender to complete a loan modification.

Loan modifications change one or more of the terms outlined in your original mortgage agreement (interest rate, length of the loan, type of interest charged, etc.) in order to lower your monthly payment to a manageable amount. Since mortgage loans are legally binding documents, it is essential that you have an experienced real estate attorney represent your interests throughout the loan modification process.