Cant afford mortgage payments..?

Question

What are your options when you cant no longer afford your mortgage payments. How long before they try to take your home. Can we work out a deal with them? and usually what does this entail? Thanks in advance!

Answer 1

Yours is not an uncommon problem as the high cost of houes a few years back has dropped leaving people with less equity then they bought.

Add a reduced income or increased expenses and it is a disaster waiting to happen.

Many banks are being hit with this right now and, because it is a slow housing market they are motivated to work with the existing loan rather the go to the foreclosure process.

Call up your bank or go down there and have a heart to heart. They may be able to come up with a program that will work for you over a short term (deferred interest etc...) especially if you DO have some equity in the house.

After that it is the re-fi option or ultimatley a sale which may bring you more then a foreclosure .

Good luck to you......

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Answer 2

What is your interest rate now? Have you contacted your lender to see if you can lower your payments by refinancing thru them. Do you want to save your home? How late are your payments? If no more than 120 days late, it is not too late.

Options:
1. Refinance with a lower rate &/or a longer period of time. There are 40 year and 50 year mortgage now, that will lower your monthly payments.

2. There are interest only programs. But the interest is interest only, and NOTHING IS BEING PAID ON THE PRINCIPLE. I do not recomment this, but it does lower your payments until you get onto your feet again.. You do have the option to make a higher payment and apply it to your mortgage principle. It is listed as such on your mortgage payment coupon. Hope this helps, and Good luck to you.

Answer 3

You can work out a deal with your current company. It will wreck your credit though.

First thing to do is contact a mortgage broker and see if there is a program they have which can reduce your payments without you having to be late with your current lender.

If all fails and you sink, you will have to be behind 4 months before you are foreclosed on. After that you have a redemption period typically 6 months. After that they toss you out on your ***.
If you vacate the home after the sheriffs sale most banks will give you a couple grand to do the dead beat shuffle (get your stuff out of the house so they can sell it)

Answer 4

Try taking off the escrows, when my husband left and refused to pay any bills thats what I did. It saved the 300 bucks a month. Or try and refinance, or get on a payment plan. You could also rent the house out to cover the mortgage, or put it up for sale.

Forclosures depending on the banks, could take as little as 30 days to three months.

Answer 5

First, try to refinance your home to a more affordable payment. While doing that you maybe able to consolidate some of your debt and pay off high interest credit cards and other bills. If that doesn't work out then sell the house and move to something you can afford. You don't want a foreclosure on your credit record!

Answer 6

Contact the mortgage company! Look on your statement for a customer service number and call them. Explain your situation, and they'll transfer you to the appropriate department.

Tell them that you have a situation and you need their help! They will give you your options.

Good luck!!

Answer 7

Have you tried to refinance? You may be able to work something out but you wont know until you call and ask. Many companies have programs to help you becuase its expensive for them to foreclose. Also, banks have different polocies as to their length of time before they copmmence foreclosure proceedings.

Answer 8

Try refinancing contact me if you're interested. We can do 30, 40, and 50 year mortgages.