Irvine Mortgage Debt Management Attorneys

Helping You Attain Relief from Unmanageable Payments

While home ownership is part of the American Dream, it is also a substantial debt burden, as it is often the biggest recurring payment a person has. While you might have signed up for a mortgage option at a favorable interest rate that allows you 15, 20, or even 30 years to pay off the debt, the monthly payments can put a significant strain on your budget. As circumstances change, your mortgage may become more of a burden than you had once anticipated

Fortunately, mortgage debt relief is possible with qualified guidance and support. Our Irvine mortgage debt lawyers at McFarlin LLP are well-versed in California law regarding what types of relief may apply to your particular circumstances. Since your options are dependent upon several factors, the best way to learn what those options are is to contact us for a free, no-obligation consultation.

Call us today at (949) 570-5025 or contact us online to find out how our mortgage debt attorneys can help.

Your Mortgage Debt Relief Options

Many homeowners struggle to keep up with their mortgage payments. Here are some alternatives to consider:

• Refinancing your mortgage – Replace your existing mortgage with a new one under more favorable terms. You can reduce your payment by getting a new mortgage with a lower interest rate and/or longer term. The new mortgage you acquire will depend on your credit score and market conditions, but, if you qualify, it's worth considering. Usually, a mortgage broker can answer your questions.

• Modifying your existing mortgage – If you and your lender agree, you can change the terms of your current loan to try to lower your payments. Whether or not a bank agrees to modify your loan is completely within its discretion, unless you are a homeowner who qualifies under certain federal programs. Even if you are eligible, this process can take a lot of time and requires you to produce a lot of documentation.

• Settling your debt – Under certain circumstances, you might be able to reduce the principal and interest owed on your home mortgage. An attorney can work to negotiate your mortgage debt settlement on your behalf if you are underwater on your first or second mortgage or your HELOC. Once your mortgage is settled, the lien is released from the property.

• Trying for a short sale – You can try to sell the property for less than what you owe, as long as the lender agrees to a first and second mortgage debt settlement. If you short sale your home, you are completely released of liability after the sale and will not owe anything to the lenders. Your best bet is to work with a lawyer to negotiate with the lenders on your behalf.

• Filing for Chapter 13 bankruptcy – Often, Chapter 13 bankruptcy can be used for mortgage debt settlement purposes. It triggers an automatic stay, which prevents lenders from initiating foreclosure and pauses any open proceedings. During the 3-5-year repayment plan, homeowners can catch up on payments without the immediate threat of losing their home. To see if this is an option, consult our bankruptcy attorneys.