When a homeowner is in trouble financially, meeting a mortgage obligation each and every month may suddenly become a struggle. One of the first things Florida homeowners may want to do is contact their lender and plead for a mortgage modification. While this may work for some, it can be a temporary fix and not economically sound in the long-run. Before deciding to seek a mortgage modification, it may be best to understand other options on the table, such as bankruptcy or perhaps stripping a second mortgage.
One option to consider is Chapter 7 bankruptcy. It can lead to the discharging of some debts, such as credit card debts. This can reduce debt overall for a family and give them the extra money needed to catch up on a mortgage. This alone could eliminate the need for any kind of mortgage modification.
One other option that may be appealing is Chapter 13 bankruptcy. If you file for this type of bankruptcy, you might be able to strip a second mortgage if you have one. This allows you to catch up on the primary mortgage payments and not have to worry about changing the terms of the mortgage you already have.
For those who are weighing the option of a mortgage modification, a fresh start may be all that is needed to eliminate financial insecurity. While adjusting the terms of a mortgage may be helpful for some in Florida, others may find bankruptcy options to be the most economically sound option for their unique situations. Our firm has more information on our website about the bankruptcy process and the facts about mortgage modification.