When a person’s financial situation takes a turn for the worse and they find themselves struggling to make their monthly mortgage payments, they may be in danger of losing their home via foreclosure. Even in seemingly hopeless situations, clients still have options for debt relief in Arnold, MO, and a bankruptcy lawyer from Stlbankruptcyfirm.com can help them explore those options. Below are several debt relief tactics that may, in some cases, help a homeowner avoid foreclosure.
Forbearance
If a person is struggling to make monthly payments on a home loan, it is important to talk to the mortgage lender as soon as possible. Forbearance is just one of many financial arrangements that are available to homeowners at risk of default. During the forbearance process, the borrower either makes lower or no mortgage payments for a certain period. When clients can prove that they’ll soon receive a significant amount of money, they’re more likely to get a forbearance.
Loan Reinstatement
A mortgage loan reinstatement is as simple as it sounds. In this debt relief arrangement, a borrower promises to make up all their missed mortgage payments by a certain date. By doing so, the homeowner can effectively stave off foreclosure and stay in their home, despite having failed to make some of their mortgage payments on time.
Loan Modification
If a debt relief client doesn’t believe they will receive a significant amount of money within a relatively short period of time, they may be eligible for a loan modification arrangement. If a lender agrees to a modification, they may change the mortgage repayment terms or interest rate to make the loan more affordable for the borrower.
Life comes with many unexpected and sometimes frightening events, and few things are as stressful as realizing that foreclosure is looming because the family can’t afford to make the monthly mortgage payment. If someone finds it hard to make even the monthly minimum payment on their home loan, they can turn to a lawyer for debt relief in Arnold, MO. Visit the website to learn more about various debt relief services, or call the office today to set up a consultation and free evaluation.
Visit Stlbankruptcyfirm.com for further details.
