Have you fallen behind on your mortgage loan payments? If so, there are a couple ptions you might want to discuss with your mortgage loan lender before you consider filing for bankruptcy or taking a foreclosure. Although bankruptcy may be the step that you ultimately take, it should be considered your final resort. Here’s a look at a couple options you should ask your lender to consider.

Forbearance

If you only expect to have financial troubles for a short period of time, you might want to discuss forbearance with your lender. With this option, your lender either reduces or suspends your payments for a period of time. Of course, there are generally fees associated with this option and interest fees will continue to accumulate. Nonetheless, this can give you the window of time that you need to get your finances back in order so you can start making your payments on a regular basis.

Once you are capable of making payments again, you will either need to pay all of the past due amount at one time or you will need to make larger payment each month until you are caught up with your payments. If you are required to pay the entire past due amount at one time, it is referred to as reinstatement. If you pay a little each moth, on the other hand, it is referred to as a repayment plan.

Loan Modification

If you expect to have financial difficulty for quite awhile, you might want to discuss a loan modification with your lender. With a loan modification, the lender allows a permanent change to be made to your mortgage agreement.

Some of the most common loan modifications include:

* Making a reduction to your interest rate (which will reduce your monthly payments while also helping you save money)
* Making the term of your loan longer so you pay lower payments each month (it should be noted, however, that this option will cost you more in interest in the long run)
* Adding your missed payments onto your loan balance rather than expecting you to pay the past due amount all at once or to pay more each month in order to get caught up

In rare cases, lenders may even reduce the amount of your loan in order to help reduce your monthly payments. Brand Cialis It should be noted that you will have to report the forgiven debt on your federal income taxes, but you do not have to claim it as taxable income.

Obviously, Viagra Professional you will have a better chance of persuading a lender to conduct a loan modification if you can demonstrate that you are making every effort to make your regular payments. Therefore, you should not approach a lender about a loan modification until after you have taken steps to reduce other expenses.

If you are unable to work out an arrangement with your lender, you may want to consider selling your home. Of course, depending upon how much you owe on the home propecia age and its current market value, you might not be able to recover the full amount of the loan. In this case, filing bankruptcy may be the only option you have left. Just be aware that a bankruptcy stays on your credit report for ten years. Therefore, you should be sure to exhaust all of your other options before deciding to take this route.

Author Bio: Ryan Lynch is in charge of the marketing team for a real estate company specializing in Lakeway TX real estate. They also help buyers and sellers with Lake Travis condos for sale and waterfront lots.

Category: Finance/Mortgage
Keywords: mortgage payments, upside down, late payments, foreclosure