Last week, we talked about how resolving business disputes can be beneficial to yourself and your heirs. In addition to business financials, most individuals deal with some type of personal finance matters in their lifetimes, and those issues are often passed on to heirs through the estate process. This is especially true if a home and mortgage are factors in a person's life.
Whether or not you are dealing with the estate process, if you are having difficulty paying your mortgage and other debts, then amounts due might be piling up. Getting too deep with past due mortgage debt can happen before you know it, given the size of some mortgage payments. Missing or being late with just one or two payments can result in you suddenly owing thousands of dollars immediately. If you don't make the payment, you risk losing your home.
There are legal options for protecting your credit and other interests when you can't make the mortgage payment. These options also protect your estate and heirs, ensuring you won't pass debt on to your children or other loved ones. One option is the short sale, which involves working with the bank to sell the home for less than is owed on the mortgage. Often, a short sale occurs within the bounds of a Chapter 13 or other bankruptcy proceeding.
Other options for those struggling to make mortgage payments might include different forms of bankruptcy, refinancing and mortgage modification. Understanding what options are open to you and will work best for your current financial situation can be difficult, which is where we can help. We can also provide assistance in understanding how decisions of today might impact your estate planning and other goals of tomorrow.