Since the housing bubble crash, the number of homeowners who owe more on their mortgages than their home is worth has been steady and alarmingly high. Several programs have been developed to assist those who are suffering from underwater mortgages and other mortgage debt. These days a foreclosure attorney will be able to offer any number of mortgage debt solutions for those in need; the specifics will very from case to case, but in general there is help out there for those who need it.
Solution #1: Modification
Mortgage modification is a popular mortgage debt solution, says a foreclosure attorney. In modification, the borrower and the lender agree to a renegotiation of the terms of the mortgage, often at a more favorable rate for the lender, either with a lowered interest rate or extending the term of the loan, or by reducing the principal balance (although this last is more rare). Negotiations must include income statements by the borrower showing their ability to pay the renegotiated mortgage amount.
Solution #2: Refinancing
Refinancing can be a great way to lock in a better interest rate for a mortgage that is currently underwater. The catch to refinancing is that the borrower must have good credit and be in good standing with the loan; too often by the time the borrower comes to the lender to seek new terms, the mortgage has already lapsed into non-payment or even default. Don’t wait, says a foreclosure attorney; act in a timely manner.
The best mortgage debt solutions will be offered when you consult a foreclosure attorney to determine the future of your mortgage loan debt and look forward to a brighter future.