Gillespie & Murphy, P.A.
Call For A Free Consultation : (252) 558-1374

UPDATE: To protect your safety during the coronavirus (COVID-19) crisis, we offer telephone conferences, in place of face-to-face meetings. Please contact our office today to set up a remote consultation.

“10% off Chapter 7 and 13 bankruptcy filings” - More details

What are my options if I am struggling to pay the mortgage?

Living in the New Bern area has enabled you to establish a comfortable lifestyle for your family. You have a good job, decent income and own a nice home. Though you work hard for everything you have, you might not have enough money set aside to help when a financial emergency strikes. 

When you experience an event that causes a drastic drop in income and makes it harder for you to pay your bills, you might start to wonder what you should do about your mortgage. The home is one of the most important expenses you have and often the biggest source of stress for many individuals. If you ever find yourself falling behind on your mortgage and in danger of losing your home, consider the following options. 

First and foremost, you should contact your lender to explain your circumstances. The longer you wait, the fewer options you will have. Lenders would rather receive payment and are willing to work with homeowners who have fallen behind on their mortgages

Ask for a forbearance 

Depending on your situation and mortgage agreement, you might qualify for a forbearance. To receive a forbearance, you must prove you are experiencing financial hardship and send in supporting documentation. If granted, forbearance allows you to skip making payments for a certain length of time. The missed payments do not disappear. They are added back into the principal balance on the mortgage. 

Apply for a loan modification 

If your situation is so dire that you cannot benefit from a forbearance, you might qualify to modify your mortgage loan. A loan modification makes your payments lower and more affordable. However, it also extends the length of the loan so you have to make payments for a longer period of time. 

File bankruptcy 

If the above options are not feasible for your situation and you have exhausted all other resources, you might benefit from bankruptcy. It is important for you to know the difference between Chapter 7 and Chapter 13 bankruptcy so you can choose the one that is appropriate for your circumstances. 

No Comments

Leave a comment
Comment Information
Attorneys Email Us For A Response

Need Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Four Different Locations To Serve You Schedule an appointment at our New Bern, Wilmington, Greenville, or Jacksonville office.

Wilmington Office
321 North Front Street
Wilmington, NC 28401

Phone: 252-558-1374
Fax: 910-254-3444
Wilmington Law Office Map

Gillespie & Murphy, P.A.
320 Middle Street
New Bern, NC 28560

Phone: 252-558-1374
Fax: 252-636-0625
New Bern Law Office Map

Jacksonville Office
200 Valencia Drive, Suite 119
Jacksonville, NC 28546

Phone: 252-558-1374
Jacksonville Law Office Map

Greenville Office
101 W 14th St, Suite 101
Greenville, NC 27834

Phone: 252-558-1374
Greenville Law Office Map