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What can you do when you fall behind on your mortgage?

On Behalf of | Nov 11, 2021 | Consumer bankruptcy |

For months now, your financial issues made it hard to climb out of an ever-present quagmire. You may file for bankruptcy, but before that, you must ensure you and your family remain in your home.

Bankrate offers suggestions for catching up on your home loan. Use their insights to give yourself room to breathe.

Repay with a lump sum or installments

If you expect your financial situation to improve, your lender may let you catch up on your mortgage with a repayment plan or lump-sum payment. Repayment plans maintain your current payment, but you also make additional payments until you catch up. Making a lump-sum contribution reinstates your loan, but you need a lot of money to make the payment and included fees.


You pause mortgage payments with forbearance, decreasing or suspending your mortgage for a specific period. After that time, you pay your loan with installment payments or a lump-sum contribution. Forbearance often suits those experiencing short-term financial issues. If you like this option, research how much more interest you pay by increasing your mortgage term.

Lower the cost of homeownership

Perhaps the cost of home upkeep and maintenance keeps you from making mortgage payments on time. If so, look into reducing your home insurance premiums while enjoying the same protections as you have now. You could also qualify for property tax abatements in your zip code. Depending on how much home equity you have, you could eliminate private mortgage insurance payments.

Bankruptcy may help you and your financial health more than you realize. While weighing the pros and cons, take action to keep a roof over your head.