A mortgage is a loan that millions of people utilize to get on the property ladder. Generally, a deal is worked out along with repayments after considering the person’s income and savings.
However, life can be unpredictable and your financial position may not always stay the same. If you’re fortunate, you may land a better-paying job. On the other hand, you may lose your job. In such a scenario, it may be necessary to ask for a mortgage modification. Outlined below are some of the more common situations when this might be necessary.
Change in family circumstances
When purchasing a joint home, the income of both you and your spouse was considered. Unfortunately, soon after moving in, you and your spouse hit some relationship troubles. You ended up getting divorced and you’ve essentially lost half of your household income. At a time like this, it may be necessary to ask for a mortgage modification. The same might apply if either you or your spouse have been diagnosed with a long-term illness or disability.
Natural disasters such as storms, hurricanes, forest fires and earthquakes are out of your control. The damage these events can do can be catastrophic. Individuals may lose properties, possessions and family members. If you can provide evidence that your life has been significantly impacted by a natural disaster, then the mortgage company may agree to a loan modification.
In certain circumstances, you may be able to extend, reduce and modify your mortgage repayments. Seeking legal guidance will give you a better idea if this is a feasible option in your case.