When someone signs a mortgage, they are optimistic that they can make it. At the end of all the payments, they will have their own space, free and clear of debt. However, things don’t always go according to plan. For people who are behind on their mortgage – especially with threats of foreclosure, it can be a terrifying experience. To help you navigate your way through the process, here’s what you should do when you’re behind on your mortgage payment, according to a Florida foreclosure attorney.
Florida Foreclosure Attorney Reveals the Steps to Take if You’re Behind on Your Mortgage
Negotiate the Terms
There are a couple of ways to do this, and which one you choose should reflect your current and future financial situation. If your problem with payment has more to do with timing, then talk to your bank and negotiate to pay the full amount due plus penalties at a certain date, or ask them if they could modify the terms of payment or the interest rate.
You can ask your loan servicer to help you come up with a repayment plan that’s doable for your monthly budget. This is perfect if you’ve only incurred a few months worth of late payments, and you’re willing to shoulder the amount staggered over the next months.
Forgiving the Debt
This references to the Mortgage Forgiveness Debt Relief Act of 2007. This was written right around the occurrence of mass foreclosures due to the recession. The point of the Act was to ensure that more families would get to keep their homes. This allows you to negotiate and cut out parts of your debt or lower the interest rate. For some people who have the ability and intent to pay, this small push is all they need to be in the clear.
Another approach if you have a temporarily lower income, rendering you unable to pay, is forbearance. This lets you suspend or reduce your payments for as long as you are still in that situation or until your bank allows it. Once that period lapses, you will go back to paying your regular mortgage and a lump sum to cover the months that you were not paying.
Sell the property
Heartbreaking as it sounds, selling your home may be the only viable option unless you contact a foreclosure attorney. In some situations, banks would even settle for how much you sell the house for, instead of how much you still owe them. Others would require you to pay the remaining balance if the selling price of the house is lower than the total amount of your debt.