Many Appleton residents may find that “home is where the heart is.” A home is the place where you put your feet up after a hard day’s work and a place where family memories are created. However, the unexpected can always happen. Whether it is due to a job loss, a serious illness or for a variety of other reasons, a homeowner may some day find him or herself unable to pay their mortgage. What options for debt relief do homeowners have in such situations?

One option homeowners who cannot make their mortgage payments may want to look into is a special forbearance. A special forbearance reduces or suspends a person’s mortgage payments for a period of time, so that the homeowner can remedy the situation that caused him or her to lose income. In some circumstances a homeowner can then enter into a payment plan to pay down the amount of money he or she owed during the time of the forbearance.

Another option homeowners may want to consider is a partial claim. In a partial claim, the homeowner will obtain an additional loan valued at the amount the homeowner needs to make good on his or her delinquent payments. Such loans may in some circumstances be interest free. In addition, a homeowner need not make a payment on a partial claim until either he or she sells his or her home or until his or her original mortgage is paid off. However, a partial claim may only be available to homeowners who have a Federal Housing Administration insured mortgage.

In addition, struggling homeowners may want to explore the possibility of obtaining a mortgage modification. A mortgage modification alters the homeowner’s loan by adding the overdue payments to the total amount of the mortgage, giving the homeowner additional time to pay off his or her mortgage. However, in such situations the interest rate on the mortgage may change.

These are only three options that homeowners in Appleton may want to take into account if they find they are unable to make their mortgage payments. A bankruptcy attorney may be able to help homeowners going through a tough financial time learn more about any debt relief options they may have.

Source: Federal Housing Administration, “Save Your Home Tips to Avoid Foreclosure,” accessed Aug. 30, 2015