4 ways to fight for your home
If you're feeling pinched by an adjustable-rate mortgage or a falling salary, take action before the situation gets worse.
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Even if you're a fiscally conservative homeowner, you may be feeling the pressure of high housing costs, particularly if you have a mortgage with a rate that's headed up or if your income has taken a hit. Here's what to do if your home is on the line.
Spot trouble early. Assess where you stand, especially if your house payments are rising. For advice on cutting back your spending or increasing your income, consult a fee-only financial planner or a nonprofit credit counselor, such as one certified by the U.S. Department of Housing and Urban Development. Credit-counseling services should be free or low-cost -- say, less than $50 for a session.
Try a refi. Rates on 30-year, fixed-rate mortgages are still attractive and are generally lower than fully indexed rates on adjustable-rate loans. If you can't refinance because your financial prospects are poor, you have no equity in the home or you're looking at a large prepayment penalty, you may want to try selling your home. If you can't afford a full-service agent, try one who offers a limited package of services for a flat fee. See "3 ways to pay lower real estate commissions."
Doing it yourself is no easy task -- you have to price the property aggressively, make yourself and your home available for showings, and close the deal.
Take advantage of mortgage relief, if it's available. In Massachusetts, for example, the governor mandated that homeowners in financial trouble be allowed to request extra time to avoid foreclosure. Their cases will be considered individually. In California, legislators have proposed creating a mortgage pool to assist first-time homeowners in trouble. Fannie Mae and Freddie Mac soon will introduce their
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