Before the financial crisis and housing bubble burst in 2008, many people were purchasing new homes with mortgages based upon adjustable interest rates. An adjustable interest rate can unfortunately be very problematic over time because it can change without warning, often raising the necessary payment amount above that which a homeowner can manage. When lenders can change your interest rate from month to month, you may not be able to make your monthly mortgage payment, putting you at risk of foreclosure.
If you or someone you know has an adjustable interest rate on your mortgage and are struggling financially, it is important for you to understand that you have options. A successful bankruptcy filing can help you to regain control of your financial situation and to keep your home. Contact the Milwaukee bankruptcy lawyers of the DeLadurantey Law Office, LLC, at 414-377-0518 to discuss your current struggles with a compassionate and capable legal representative.
Adjustable Interest Rate Problems
When a homeowner has an adjustable rate mortgage and the lender raises the rate, it may seem that their dreams of home ownership are suddenly at risk. With inaction, this is regrettably the case. Some common problems with adjustable interest rates include the following:
- Increasing the principal amount you owe on the mortgage
- Increasing the length of your mortgage
- Lead to a potential foreclosure because you cannot make payments
Unfortunately many home buyers were not fully informed about the future implications of their adjustable interest rates. Do not lose hope, however, if you are struggling to pay your mortgage, as bankruptcy may be able to stave off a disastrous outcome.
To learn more about how the Milwaukee bankruptcy attorneys of the DeLadurantey Law Office, LLC, can help you through this difficult time, contact us by calling 414-377-0518 today. An adjustable interest rate should not be allowed to stand between you and your dreams.