3 Options When Facing Foreclosure
Your home mortgage is likely one of the biggest expenses you have to pay on a monthly basis. Many different things can happen that lead you to not being able to make a monthly payment or two. While you may face some penalties for missing a couple of payments, your lender may eventually move forward with the foreclosure process if the missed payments become a trend. The good news is you can sometimes stop the foreclosure before the process really gets going. With the help of a Houston foreclosure attorney, you can proceed with the best option for your current and future situation.
Forbearance
Forbearance is an agreement where the bank will accept a smaller monthly payment, or sometimes no payment at all, for a set amount of time. This agreement is usually the best option when you run into a temporary situation preventing you from making your mortgage payments, but will be able to resume payments again soon. The bank may force you to make significantly larger payments later in order to bring your balance back up to current, so make sure your Houston foreclosure attorney reviews the agreement thoroughly before proceeding with it.
Refinance
It’s possible your original mortgage has simply proven to be too much to handle. If you have a high interest rate or a 15-year mortgage, you could refinance to get a lower interest rate or change to a 30-year mortgage to lower the payments. When homeowners need foreclosure help, refinancing is the most common option if they want to keep their home and make payments more manageable for the long-term.
Permanent Loan Modification or Temporary Interest Rate Reduction
A Houston foreclosure attorney may also be able to get you a loan modification or a temporary interest rate reduction if you need foreclosure help. With a permanent loan modification, your options may include extending the mortgage, reducing the interest rate, forbearance and more. With a temporary interest rate reduction, your monthly payments can be reduced for a short period of time until you’re able to make the full payment again. In this situation, you’ll likely have to prove your financial hardships are temporary and you’ll be back in a better spot financially in the near future.
Bryeans & Garcia, PLLC wants every homeowner to know their options if they’re looking to stop foreclosure. Every situation is unique, so the best option for one of our clients may not be the best for another client. We will take the time to review your entire financial situation, evaluate your current mortgage and put together the best options to benefit you in the short-term and long-term. If you’re in a situation where you’re facing foreclosure and need help, contact us at our Houston or Ft. Worth offices today to schedule a consultation and see how we can help.