Managing Mortgage Debt during challenging economic situations

The economic activity has been stalled globally due to the unforeseen circumstances caused by the COVID-19 pandemic. The magnitude of such a devastating impact can easily derail the financial plans as well as the ability to pay-off mortgages. The situation has become grim due to the salary cuts, loss of jobs, as well as income losses for the businesses. The long-term effect related to Mortgage Debt is beginning to manifest on many people.

Impact of Mortgage Loan

Despite brief moratorium being offered, the Mortgage Debt can have a long-term impact. Many borrowers are finding it very difficult to repay the Mortgage Loan and are thereby considering the option of relocating to their home country since no alternate options are available.  

However, choosing such an option can have immense ramifications, and there can be serious legal consequences. Unpaid Mortgage with time can turn into a monstrous sum with the interest as penalties get added to the loan. However, there are other options to help tide over these difficult times. 

Importance of Getting a Qualified Advice to Managing Mortgage Debt

In such grueling times, getting the help of a professional debt management expert can help to tide over the difficulties associated with managing Mortgage loan. With the right advice, you can regain control over the prevailing financial situation.

As a first step, you need to identify the problems that are making your loan repayment program difficult. To achieve such an objective, you need to gather all the important documents related to bank statements, cash-flow position, borrowings, salary reduction or termination letter, and information regarding other assets. After identifying the problems, and gathering necessary documents, start consulting a mortgage debt expert and then understand the available solutions to solve the problems that you are facing. 

A Brief about Debt Restructuring

Debt restructuring is a legal process that can allow altering the Mortgage contract for repaying the debt obligations. Based on the financial situation as well as the repayment record, there is a possibility to get relief from banks. Such relief measures can include an extension of timeline or lowering of interest rates or a brief moratorium.

Steps Involved in the Successful Management of Mortgage Debt

You will need to prepare a cover letter that explains about the events leading to such a situation and why you are looking for settling or restructuring your debt. For an expert handling Mortgage Debt, such documents can help to hasten the process of debt management. A few steps that are involved to complete the whole process systematically are discussed as under. 

  • The mortgage management debt expert will begin with analyzing the present financial situation, debt-burden ratio, and the valuation of the assets. The plan of action will be made which will further decide whether the mortgage debt will be settled or restructured. 
  • Further, the expert will be recommending a Power of Attorney for representing your case. After getting a Power of Attorney, the negotiations with the bank officials will initiate an effective repayment plan. 
  • During the negotiation, the expert may put forward certain options such as, lowering of interest rates, extending the tenure, brief moratorium, or step-up option. In cases,where borrowers have opted to relocate
  • After getting bank acceptance, an official letter of revised terms or release letter will be issued towards the settlement / restructure of the loan. 
  • to their home country, the expert shall discuss the possibility of conversion of loan to Non-resident or a settlement plan may be proposed.
  • Upon completing the negotiations with the bank, the expert shall recommend the best solution offered. Thereafter, a formal request shall be made to the bank along with all necessary papers. 
  • The bank based on the papers submitted will conduct an independent investigation. Such investigation may include verification of income statement, credit bureau check, as well as the initiation of property valuation.


As the top Mortgage Debt Management company in UAE, FREED Financial Services will help you handle your finances wisely and settle your debt without any drastic measures. Call at +971 4 3691880 or email at to know your options and avail our services.