If you are struggling to pay your bills, it may be a good idea to contact your mortgage lender. There is a chance that the lender will allow you to pay less than what you owe on your Texas home for a period of several months. By postponing your mortgage payment, it may be easier to take care of an unexpected medical expense or manage your finances while unemployed.
You’ll still have to pay your mortgage in full
Obtaining a mortgage forbearance doesn’t mean that a portion of your loan is forgiven. Instead, the amount that you would have paid your lender will now be paid at a later date. It’s possible that your lender will require you to make a lump sum payment at the end of the forbearance period to remain current on the loan. However, it’s also possible that your lender will spread the balance that accumulated during the forbearance period over the remainder of the loan’s term.
What happens if your financial situation doesn’t improve?
If forbearance isn’t enough to help you overcome your financial issues, it may be necessary to look into other options such as selling your home. It may also be in your best interest to consider filing for bankruptcy. Depending on your circumstances, doing so could help you reorganize your existing debts without losing your home. Alternatively, it might be possible to retain equity in the property even if it’s eventually liquidated to repay creditors.
An attorney may be able to help you navigate the process of obtaining a mortgage forbearance. A legal adviser might also explain the potential benefits of filing for bankruptcy in the event that it represents your best chance of getting a better handle on your finances.