Debt is not always a bad thing. Many DC-metro area residents carry student loans from their educational pursuits and car loans for their personal vehicles. One common form of debt that can also be positive is mortgage debt. When a person takes on a mortgage, they take on loan payments to eventually own real property.
However, mortgages can quickly become problematic when individuals cannot maintain their payments. When an individual falls behind on their mortgage, they may receive notices from their lender of their default and possible actions against them like foreclosure. These actions can be costly and can deprive individuals of their homes.
When mortgage debt becomes an issue, individuals should know that they may have options to modify their loans. This post will introduce some of the ways that mortgage loans can be modified, but readers are reminded that this post does not offer any legal or financial advice.
Types of mortgage loan modifications
Depending on the type of loan a person has, and the terms that their lender will agree to, there are different ways that mortgages can be modified. Some of the common modification options include:
- Seeking a forbearance or temporary stop to mortgage payments
- Lowering the mortgage interest rate
- Lowering the amount of principal that is paid each month
- Adding missed loan payments to the principal still owed
- Adding time to the length of the loan
As stated, the options that may work for a borrower will depend on factors related to their specific loan relationship. A debt relief and bankruptcy attorney can help a mortgage debtor understand their options.
Timing and seeking mortgage loan modifications
It can be difficult to ask for help when mortgage payments start to get burdensome. However, individuals should not hesitate to seek help when they begin to experience problems staying current on their loans. The farther behind they get on payments, the more difficult it may be for them to get out from under their debts. When mortgage debt begins, individuals can take important steps to contact trusted debt relief attorneys in their communities.