If you are struggling to make your mortgage payments, you have options to hire residential property lawyers Melbourne. There are a number of ways that you can modify your home loan or refinance it in order to avoid foreclosure. These solutions will help you get back on track financially so that you can avoid the most drastic consequences of foreclosure and keep your home.

• Modification of your loan

If you are unable to make your mortgage payment, it is important to keep the lender informed of your situation. If they are aware that you are struggling financially, they may be willing to work with you and modify the terms of your loan. Takes advice from residential property lawyers Melbourne today.

Modifying a loan means changing any one or more of these aspects:

• Interest rate
• Monthly payments
• Term (length) of the loan

• Forbearance

The first option is forbearance. This is where you ask your servicer to delay or suspend mortgage payments for a period of time. Forbearance is typically only available when a homeowner has good credit and can afford their mortgage payment, but they are temporarily unable to make it due to unexpected circumstances such as illness or job loss.

There are two types of forbearance: temporary (which generally lasts between three months and one year) and permanent (which can go on indefinitely).

The amount of the monthly payment that will be deferred depends on the type of forbearance chosen; however, most lenders require borrowers to make at least some sort of partial payment toward principal during each month’s grace period in order to keep their loan current on paper.

Temporary forbearance usually costs more than permanent monthly payments because there is no guarantee that your lender will continue accepting partial payments once your temporary agreement ends—a decision that could leave you stuck with an unpaid balance on your mortgage! 

It’s important not only that you understand what type of forbearance program may be best for yourself but also which one offers the lowest cost solution overall before signing anything with either lender or residential property lawyers Melbourne.

• Refinancing

If you’re current on your mortgage, refinancing is an option for getting a lower interest rate. The process of refinancing involves applying for a new loan with a different lender at a lower rate, which reduces your monthly payments. Your old lender will accept your offer in exchange for releasing their lien on the property, which allows them to obtain payment from the new lender.

If you’re not current on your mortgage, refinancing can be helpful if it allows you to catch up some missed payments or reduce what remains outstanding on the balance of your loan.

• Filing for bankruptcy protection

There are a few options available to you if you cannot afford your mortgage payment. One option is filing for bankruptcy protection. This is a legal process that allows you to get rid of debt by liquidating certain property, such as real estate, in order to pay off other bills. 

You can file for bankruptcy protection if your debts are too high or if you’re having trouble paying bills on time due to financial hardship.

Conclusion

If you find yourself having difficulty making your mortgage payments, there are several options available to you. Modifying your loan, forbearance and refinancing are all viable options for those who lack the financial resources necessary to keep up with their home loans.

However, before making any decision about which course of action to take it is important that you speak with a residential property lawyers Melbourne who can explain all of your options in detail and help guide you through this difficult time.