Having trouble paying your mortgage? A few tips to help you.

By
Real Estate Agent with Platinum Partners Realtors

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
Broker Associate.
Platinum Partners Realtors®
630-654-3600
http://www.hankroeters.com/

Comments (9)

Mike Klijanowicz
Cummings & Co. Realtors - Perry Hall, MD
Associate Broker @ Cummings & Co. Realtors
Great Tips!  I'll pass them along to my clients who may be in this situation!
Jan 19, 2008 01:44 PM
Carol Culkin, ReeceNichols
ReeceNichols Real Estate - Overland Park, KS
Overland Park Residential Real Estate
That is wonderful advice. However, the #3 point is one most people are too much in denial to ever get there before it's too late. I think more and more people are getting it though.
Jan 19, 2008 02:08 PM
Hank Roeters
Platinum Partners Realtors - Darien, IL
Michael and Carol, thanks for your comments. Denial is a big problem and a lot of people wait until it's too late.
Jan 19, 2008 10:35 PM
Keith Hoffman
1st Advantage Mortgage - Lombard, IL
1st Advantage Mortgage - Residential Mortgage Specialist

Hank,

 Looks good. NOw lets hope those in need read this and follow your information. Lets have lunch this week!

Jan 21, 2008 02:55 AM
Hank Roeters
Platinum Partners Realtors - Darien, IL
Thanks for your comment Keith, and your right, stop the denial and start doing something about it. Talk to you later about lunch.
Jan 21, 2008 04:40 AM
M A
Boston, MA

Hank,

Good advice.  So many people ignore the bad situations and just assume they'll get better.  You have to take initiative and MAKE it better.

(I wrote a post about you today.... Hank)

(Not really about you.)

Jan 25, 2008 07:02 AM
Hank Roeters
Platinum Partners Realtors - Darien, IL
Thanks for your comments Martin, and thanks for the Hank. (i think) :~)
Jan 25, 2008 08:58 AM
Greg Zaccagni
The Federal Savings Bank - Wheaton, IL
Illinois Mortgage Lender

Please consider using equity to buy down the rate to a more comfortable fixed payment.  While many consumers are reluctant to pay discount points, as prepaid interest they are likely deductible (consult your tax advisor) and can help match their income to a more affordable payment.

www.MortgageAdvisor.info

 

Jul 02, 2008 01:27 AM
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Oct 19, 2015 06:03 PM
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