Because values have dropped your home won't appraise at what it did a couple years ago. And now the 2 year fixed rate loan that allowed you to buy your home and make affordable payments has just reset increasing the payment.

Your obvious first choice is to refinance the loan. That's what your loan originator expected to happen at the end of the fixed-rate period. Unfortunately what wasn't expected was the decrease in value. What now?

Try a call to your current lender and explain that there is just no way you can keep making this larger payment. Ask about renegotiating the loan (loan modification). Are they prepared to assist their consumers or take a loss when a forclosure becomes the only alternative?

Also contact a mortgage broker. Ask what options, if any, there may be. Ask them about 100% financing, special government programs designed just for this may be available.

There's no need to wait until you have been forced to make a late payment on your home loan.  Take a proactive stand, make as many phone calls as necessary and ask questions!

CA Consumer Home MortgageInformation

© Copyright  2007 by Lynnette Phillips