Des Moines, IA (Law Firm Newswire) March 1, 2013 – Not being able to pay the mortgage is a stark reality for many Americans these days. There are some tips to deal with this issue.
It is not always easy to pay the mortgage when the economy is bad, remarked Iowa bankruptcy lawyer, Kevin Ahrenholz. In fact, more people find themselves defaulting, going under, struggling to hang on and losing, and are right up against the wall with worry. There are some options to consider.
One of the first things to do is to talk to the mortgage lender. While this idea might frighten homeowners and make them feel they have failed their financial obligations, the lender sees this kind of thing just about daily. They are not without compassion and understanding. The lender may be willing to work towards a lower interest rate or get creative to find ways to make payments affordable. If the homeowner already has an interest only loan, this may limit their options, but it is still worth asking what else can be done to lower payments.
While getting a break from the lender is not always an easy process, because they want their money back, they do realize there is no point in repossessing the house. That would leave them holding the bag and without any income. Negotiating becomes a better option for them, but they would be loathe to admit it.
Option number two may be filing bankruptcy. What chapter to file under would be a discussion to have with an Iowa bankruptcy lawyer, but generally speaking, it would be a Chapter 13 bankruptcy. This would allow the homeowner to create a plan to repay their debts, including the mortgage, over a five year time frame. That may mean re-negotiating for a lower interest rate, a longer repayment period or the choice of lumping past due payments into the total balance owing.
Some homeowners will also try protesting their taxes. Property taxes always seem to be out of line and one way to tackle that problem is to file a protest as soon as the property tax notice arrives. That means producing proof that taxes are out of line with comparables in the same area. Ask a real estate agent for help with those figures suggested Ahrenholz, an Iowa bankruptcy lawyer.
If push comes to shove, consider moving. There are some cases where the payments to be made are just too much for the income the individual makes. When there are no more alternatives to pursue, it may be time to pack up and leave. Downsizing is often a good option, and the simplest method to reduce a mortgage payment.
Kevin Ahrenholz is an Iowa bankruptcy lawyer and Iowa bankruptcy attorney. To contact an Iowa bankruptcy attorney, Iowa bankruptcy lawyer, or set up an appointment, visit http://www.iowachapter7.com or call 1.877.888.1766.
309 Court Ave., Suite 805
Des Moines, IA 50309
Offices in Des Moines, Cedar Rapids, Waterloo, Mason City, and Vinton.
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