If you're having a problem making your mortgage payments, or think you might in the months ahead, don't despair. there are things you can do to help keep you out of trouble.
•1.The best advice I can give you is to talk to you're lender. Don't ignore the problem and hope that it will go away. You are not alone and have nothing to be ashamed of. All lenders deal with this from time to time and may have options that will let you keep your home, and ride out the hard times. You won't know if you don't talk to them.
•2. Change to a fixed rate. If a rate hike on your adjustable-rate mortgage is going to be a hardship speak to your original mortgage originator to see if they can help in switching or refinancing to a fixed rate loan. Many have tried to contact their present mortgage company to change to a fixed rate mortgage, but very few will do so without requalifying them or refinancing their existing mortgage. While doing this see if they will extend the term of the loan. Going from a 30 year to a 35 or 40 year term might lower your payment and make your life a lot easier. Remember, it's better for the lender to refinance then to foreclose and lose money.
•3. Sell the home. If you don't see any way out of trouble, there is nothing wrong with selling. But don't wait until you go into foreclosure. If you have a true financial hardship the lender might allow you to do a short sale. A short sale is when you sell for less then you owe and the lender forgives the outstanding debt. Be sure to talk to the lender, and a real estate professional, before proceeding.
Hank Roeters, ABR,GRI,e-Pro
Platinum Partners Realtors®