Perhaps few things can affect and upset every aspect of your life like falling behind on your mortgage payments. Lenders can be ruthless in collecting on their loans, even if it means removing you and your family from your home. In these uncertain and unprecedented times, you may be facing hardships for which you could never have prepared. Facing foreclosure and the loss of your home may not have to be one of them.
What many in Texas may not know is that there are options available for those who fall behind on their mortgage. Too often, mortgage lenders convince homeowners that the only way to save their house is to come up with the lump sum of delinquent payments. They may even refuse to accept a single mortgage payment until you catch up on your past-due amount. However, there are methods of getting back on track with your lender.
You have more choices than you think
Your lender may not be forthcoming about the various paths available for those who are struggling to catch up on mortgage payments. In fact, it may seem like your lender is not willing to work with you. They may even tell you there is nothing you can do once they begin the foreclosure process. This is not necessarily true, but you may benefit from the advocacy of an experienced attorney who is knowledgeable in Texas real estate law. Some options your attorney may recommend and assist you with include:
- Negotiating a reasonable plan for repaying the past-due amount
- Spreading the overdue amount over the next few payments
- Refinancing the loan to include the overdue amount
- Applying for a new loan for just the overdue amount
- Asking the lender to waive the amount overdue and allow you to start fresh with the next payment, which is not often successful
- Modifying the terms of your loan, such as freezing or lowering the interest rate
Lenders are often reluctant to agree to many of these options, but loan modification may have many benefits, including stopping the foreclosure process and getting you back on track. Even if your lender will not concede to the modification, you may qualify for other programs that could help you meet your goals, or you may choose to take more aggressive action to stop the foreclosure of your home. An attorney with a history of success in this area can guide you in the most appropriate methods.