If you are having trouble paying your mortgage, you are not alone.
The good news (and we can all use some in this economy!) is that there are other options available. While the prospect of losing a home to foreclosure is almost too upsetting to think about, it is worthwhile to know your options. Gone are the days when refinancing was the only viable option. These days your mortgage company may be committed to helping you avoid foreclosure, which is an expensive option for everyone involved.
Here are some other options:
- Modification of the existing mortgage. The terms of the existing mortgage can be modified by agreement of all the parties. This can be accomplished privately on your own, with the help of an attorney, or through the U.S. Treasury Department’s Home Affordable Modification Program (HAMP)
- Forbearance. Your mortgage company may agree to temporarily suspend monthly mortgage payments or to reduce them because you are facing a special, short-term hardship (death of a spouse or family member, health issue). There are special forbearance options available to persons who need help because of the death or injury of a spouse in active military duty.
- Negotiation of a Repayment Plan: This is an agreed plan to help you catch up on past due amounts.
- Deed in Lieu of Foreclosure: In this option you deed your property over to the mortgage company rather than forcing the mortgage company to pursue an expensive foreclosure, which would appear on your credit report as a foreclosure. In this option you may be able to lease back your home for a specific amount of time and continue to live there.
- Sale of the Property: Although this can be difficult to accomplish, you may be able to do it if you are willing to price your property to sell, even if it means losing some of your investment. You also should be ready to assist your realtor in any way possible, by making recommended cosmetic changes within your budget, getting the word out through your own networking contacts and being open to suggestions for moving the property.
If you are having trouble paying your mortgage now, or are behind, don’t wait until it is too late to take advantage of other alternatives. An attorney who is knowledgeable in real estate law and familiar with your geographic area can assist you in deciding on what options you should consider. A consultation is well worth your time, as you will leave the law office armed with knowledge that is tailored for your particular situation.
Bob Kalish has been practicing real estate law since 1984. Kalish Law Office is located in The Woodlands Texas, north of Houston 281-363-3700.
