How To Know When The Time Is Right To Modify Your Mortgage

Falling behind on your house payments is no one’s idea of fun, but it does happen. If you have had a drop in income, have lost your job, or experienced an emergency that caused your monthly expenses to skyrocket you do have options. But it can be hard to make the right choice, and making the right choice depends on your personal circumstances and needs. For some people the decision to file for bankruptcy is the right one, and for others it is more beneficial to look at alternatives.

One alternative is to ask your mortgage holder to modify your loan. A mortgage modification can lower your payments, because the key element in a mortgage modification is lowering the interest rate. 

Here are some ways to know if the time is right for you to modify your mortgage:

•         You are behind on your monthly mortgage payments.

•         You are not able to make a full payment.

•         You are not able to pay your mortgage and keep up with all of your other bills and living expenses.

•         Your salary is lower now than when you bought your house.

•         Your house is worth less now than when it was purchased.

•         Your interest rate is higher than the current mortgage loan rates.

If any of these apply to you, you should consider modifying your mortgage. The lower payment will help you to make on time payments and in many cases the past due amount can be wrapped into the modified loan. This saves you from having to come up with a lump sum payment to get current, while keeping you in your house. A modification will also help you stay on track with all of your monthly obligations, because when your house payment is lowered you have more disposable income to pay other bills. Being able to pay all of your expenses without going into further debt is the first step towards becoming debt free. It is also the first step towards getting your expenses in line with you income, so you don’t overspend. Our goal is to help you put your finances right, and keep them that way so you have enough money to meet your obligations and even put some aside for an emergency. Call us for help.

For more information about how to handle overwhelming debt, contact us at www.law-ri.com. We will help by coming up with solutions that work for you and have multiple locations to meet your needs for office visits.