Mortgage Loan Forbearance Lawyer Texas
If you are in danger of losing your home, you may want to speak with a Texas mortgage loan forbearance lawyer from our firm. The idea of losing your house can be very scary. An experienced lawyer may be able to help you into forbearance.
What Is Mortgage Forbearance?
Whether due to job loss or unexpected medical bills, many people fall behind on their mortgage payments. They can no longer afford their monthly payments and may fear getting kicked out of their homes. If you are currently in this situation, you may be eligible for forbearance. Mortgage forbearance allows homeowners to remain in their homes and temporarily stop their mortgage payments until they improve their financial situation.
Benefits of Mortgage Forbearance
If you need a little extra time to get back on your feet, mortgage forbearance may be the right choice for you. Here are some of the benefits of mortgage forbearance.
- Avoid foreclosure. The most obvious benefit of mortgage forbearance is that it lets you avoid foreclosure. You may have lived in your home for a long time and do not want to let it go. Foreclosure can come with many negative effects, such as significantly lowering your credit score and making it more difficult to obtain another mortgage in the future.
- Have more time to repair your finances. Financial hardship is an inevitable part of life sometimes. If you get a mortgage forbearance approved, however, you can get some extra time to improve your financial situation. As a Texas mortgage loan forbearance lawyer can confirm, forbearance can give you several months to get you back on your feet.
- Establish lender goodwill. If you opt for forbearance instead of foreclosure, you can also show your mortgage lender good faith. If you establish goodwill, your lender may be more willing to help you with future hardships.
Downsides of Mortgage Forbearance
Although mortgage forbearance can be beneficial for some, it does come with certain downsides, like:
- Repay missed payments. Before you enter into mortgage forbearance, understand that you will be required to repay your missed payments once the forbearance comes to an end. If you do not have your financial situation under control by then, you may not be able to make these payments when they’re due.
- Harm credit rating. Although your credit score may not take as hard of a hit as it would with foreclosure, your score can still go down. If loan providers see a forbearance on your record in the future, they may deny you loans.
- Not helpful for long-term financial problems. Mortgage loan forbearance is designed to provide temporary financial relief. If you have long-term financial problems and do not know when you can realistically afford your mortgage again, forbearance might not be a suitable option.
If you are thinking about entering into mortgage loan forbearance, you should schedule a meeting with a Texas mortgage loan forbearance lawyer from Leinart Law Firm to talk about your situation.