Free Consultation 24/7
516-712-2969
Current Clients Call 516-227-2662

Alternative ways to get out of debt

You've been struggling to pay your mortgage, and as a first-time homebuyer, you didn't think things would go this way. Sometimes, life gets in the way of making payments, but when it's always a struggle to cover the bills, it's time to take action.

One of the things you can do to get out from under the stress of a mortgage is to go through a foreclosure. With a foreclosure, you lose your home. If you've received a notice that a foreclosure is looming, it's not too late to stop the process and look for other ways out of debt. Here are a few possible alternatives.

Use negotiation tactics

Sometimes the solution is as easy as talking to your lender about lowering your monthly payments, extending your loan or giving you a month or two to recover from a financial hardship. Your attorney can help you reach out to your creditor and discuss your situation. It may be possible to lower the amount you owe each month for a period of time or to extend your mortgage to make sure you always have an affordable payment.

Sometimes, the lenders will forgive missed payments and add them onto your mortgage to be paid back at the end of the term, which can help you avoid foreclosure. The important thing to remember is that you have to contact your lender as soon as you can. If you wait, the lender may not be as willing to work with you.

Consider a short sale

Another alternative is to move forward with a short sale. This will still result in you losing your home, but it won't be as detrimental to your credit. With a short sale, you ask the mortgage lender to forgive the balance of the loan if you sell the home for a fair market price. The lender has to agree to any buyer's offer, so this process can take a while, and you need to make payments in the meantime.

Opt for bankruptcy

A bankruptcy can also help you protect your home by helping you eliminate debt. A bankruptcy comes in many forms, and one, Chapter 7, liquidates many of your assets to reduce your overall debt load. If you want to keep your home, you may be able to thanks to the bankruptcy's exemptions.

These are just a few options. Remember that the sooner you take action, the b etter.

No Comments

Leave a comment
Comment Information

Contact Us

Rubin Licatesi, P.C.

How Can We Help You?

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Rubin Licatesi, P.C.
591 Stewart Avenue 4th Floor
Garden City, NY 11530

Toll Free: 888-318-2146
Phone: 516-712-2969
Fax: 516-227-3374
Map & Directions

Brooklyn Office
3857 Kings Highway Suite 1F
Brooklyn, NY 11234

Toll Free: 888-318-2146
Phone: 516-712-2969
Phone: 718-712-6864
Map & Directions

Current Clients: 516-712-2969
map
map
Attorneys
Back To Top