For most homeowners, mortgages are long-term financing arrangements that can last several decades. Over this time, interest rates could increase or economic circumstances could change, making it more difficult to meet monthly payments. While falling behind your home loan can be stressful, taking action as soon as possible will allow you to get your finances back on track. If you can’t make mortgage payments, here are a few ways to handle the situation and how an attorney can help.

4 Ways to Handle Past-Due Mortgage Payments

1. Apply for Loan Modification

People experiencing financial hardship may be able to take advantage of government loan modification programs to reduce their expenses. To apply, speak to your loan servicer as early as you can before the debt grows.

For modification approval, the home must be your primary residence and have been mortgaged before January 1, 2009. You must also owe less than $729,750 on the mortgage and have contributed payments that total more than 31% of your current gross income.

2. Correct the Default

If your financial hardship is a short-term problem, you may be able to reinstate the mortgage by working with your loan service. This process may involve submitting the unpaid debt by an agreed-upon date or creating a repayment plan.

3. Short Sale

When homeownership is too costly, but you want to avoid the financial consequences of foreclosure, you can short sell the property. Through this option, you sell the property and may be able to recoup money if you have substantial equity in the home.

4. File for Bankruptcy

If you’re facing foreclosure, filing for personal bankruptcy will delay the process and give you more time to work out a strategy with an attorney. Chapter 13 bankruptcy allows you to keep your home but will require you to restructure and repay debts. Chapter 7 bankruptcy discharges most unsecured debts but will usually involve losing your home to cover a portion of those balances.

Specializing in debt relief and bankruptcy law for more than three decades, Donald L. Spafford, Jr., Attorney at Law, is a leading resource for Oahu residents struggling to make mortgage payments. Taking a compassionate, individualized approach, this Honolulu, HI, attorney will review your circumstances to determine which strategies can work for you, such as personal bankruptcy. He is also qualified to build and represent cases that require court decisions. To learn more about these services and schedule a free consultation, call this debt relief lawyer at (808) 532-6300.