What happens if I can't afford the payments for a loan modification?

If you are unable to afford the payments for a loan modification in North Carolina, you may be eligible for a loan forbearance. A forbearance allows a homeowner to reduce or suspend mortgage payments for a period of time. During the forbearance period, you and the lender renegotiate a payment plan that fits your budget. Depending on the lender, this plan could include reducing your interest rate, extending the repayment period, or reducing the principal balance. It is important to note that the lender has the right to require repayment of the past due amount at the end of the forbearance period. You must still have the ability to make those payments in order to be eligible. Additionally, the lender may require collateral such as a second mortgage or other security in order to grant a forbearance. Another option available to you is filing for bankruptcy. While this should be considered a last resort, it can provide relief from foreclosure proceedings for a period of time and help you come up with a long-term solution. Bankruptcy can also discharge some or all of your debt and allow you to keep your home. No matter the situation, it is important to speak to a qualified foreclosure defense attorney in North Carolina to help you understand all your available options. An attorney can help you come up with a customized plan for your particular situation.

Related FAQs

Can I get a loan modification if I'm delinquent on my mortgage?
How can I access additional resources to help me with foreclosure defense?
What are the benefits of foreclosure counseling?
What is a foreclosure deficiency judgment?
Is foreclosure ever reversible?
What kind of help can I get to avoid a foreclosure auction?
What is the best way to fight foreclosure?
How can I find a foreclosure defense lawyer?
What should I do if I'm facing foreclosure?
What are the differences between foreclosure defense and loan modification?

What happens if I can't afford the payments for a loan modification?

Related FAQs

Related Blog Posts