Mortgage Loan Solutions and Bankruptcy Alternatives

: Chris Lee Law Firm

  Filed under: Mortgage

ForeclosureFiling for bankruptcy in Dallas is not always a welcome option. It damages your credit scores and can put your finances on hold for quite some time. If you are the type of person that would rather not file a chapter 7 or 13, here are a few bankruptcy alternatives to consider.

Mortgage loan solutions and bankruptcy alternatives

  • Negotiate with lenders: It is the first and most obvious step. Talk with your lender and work toward creating a different repayment schedule. This might involve you handing over some cash as a lump sum or even writing over an asset to the lender. It will work as a sign of good faith and open them up to negotiations. The two items that you can negotiate is the interest rates and the duration of the mortgage.
  • Consolidation: Consolidation is the process through which all the different debts come together. If you have, say a few credit cards, a mortgage, an auto loan, and a personal loan, keeping track is difficult. A consolidation brings them all together and makes it one payment. It is a bit easier to repay and keep track of. The terms of repayment are also likely to be a lot more manageable.
  • Debt management plans: Settlement plans, as they are also known are plans that will help both you and your lender. You get your entire debt redone with better terms and the lender actually gets to recover debts. Many lenders offer these solutions depending on your repayment history.
  • Short sale: Short sale of home or property is something that needs a lot of negotiation. The advantage is that you will not be under debt even if the property is no more with you in spite of it going for less.

The final option, but one that you might want to consider is doing nothing. You might not have anything that is worth suing for, especially if you don’t have assets.

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