When it comes to choosing your house, many of us tend to purchase at the top of our budget, knowing this is a place our children may bring their children someday. So we silently resolve to eat out less and save more and stretch the budget enough to get the house that makes us proud. But when you have a home loan that spans the length of three decades and you’ve decided to sign on for a payment that stretches your budget, you may be putting yourself in a predicament.
Our grandparents tell us stories of their houses costing a mere $30,000 no more than 50 years ago, and we hope that our home, which is valued at more than 10 times that, will sound ridiculously inexpensive in another 50 years.
Perhaps you can get to the point where your home is worth far more than you owe on your mortgage. However, if that time is not now and you are facing financial hardships that leave you unable to keep up with monthly mortgage payments, you may want to explore other options besides foreclosure. Many solutions depend on how far behind you are on your payments. It is always better to speak to your loan servicer as soon as you are experiencing difficulties with your payment. While some loan servicers can be sticklers and will not offer much, others may work with you. Some options you may be offered or may suggest are:
- Forbearance. This is a viable option for a temporary hardship situation.
- Repayment plan. Servicer breaks up the past-due amount and tacks a portion onto each of your now-timely payments.
- Reinstatement. You are given a specified date to pay everything current and then go on as if nothing happened.
- Home sale. Selling your home may provide you the money to pay off your debt and even come out ahead, particularly if you are in an area that is on an incline for home values.
- Bankruptcy. Chapter 13 bankruptcy is an option that may allow you to achieve a system of debt management that will let you keep some of your property.
When it comes to your home, the decisions you make may be some of the most important of your life. This is when a Florida bankruptcy attorney may prove to be invaluable.