There is a lot that goes into becoming a homeowner, from home hunting to qualifying for a mortgage and keeping up with your mortgage payments. All this can easily be overwhelming especially because you'll be juggling other adult and family responsibilities in tandem. If you find yourself in a position where you can no longer make your mortgage payments, you should know that you have options. One option is to modify your mortgage payments with the help of a real estate attorney. Read along to learn how this will work.
1. Review Your Mortgage Documents
Documentation of your mortgage is important as it enables you to establish what you're legally bound to do during the payment period. It also allows you to have something to review when you're thinking of modifying the payment plan.
This is because your mortgage documents will outline the terms of your loan and any potential penalties for missing payments or defaulting on the loan. Thus, your attorney can look into the documents when the terms no longer serve you to see what they can do to ease the financial pressure.
2. Negotiate With Your Lender
Once you have determined that you would like to pursue a modification of your mortgage payments, your next step will be to contact your lender. However, it would help if you didn't talk to them directly; instead, let your real estate attorney negotiate on your behalf. The negotiation process will include discussing your financial situation and proposing a new plan for making mortgage payments that is more manageable for you. They are experts in this field and will work to get you the best possible outcome.
3. Get a Loan Modification Agreement In Writing
After your attorney has negotiated with your lender, they will ensure they get you a written agreement that is legally binding. This way, your lender won't go back on their word after agreeing to new terms for your loan. The terms and conditions can include a new monthly payment amount, changes to the interest rate, and the length of the loan.
4. Make Sure You Can Afford the New Mortgage Payments
Before agreeing to a loan modification, it is important to make sure that you can actually afford the new monthly payments. That is why your attorney will take into account your other debts, expenses, and income. They will go as far as helping you calculate your monthly budget to see if the new payments are feasible. If not, they may be able to negotiate a different payment plan with your lender before the new agreement is signed.
If you struggle to make your mortgage payments, a real estate attorney can help you modify your payments. They will review your documents, negotiate with your lender, and help you get a new agreement in writing.