Mortgage Meltdown and your Options

December 22, 2008
Matt Isleib

 

In a perfect world we find a home that we like, purchase it and then seek out a suitable mortgage to help finance the purchase. And in that perfect world we pay the mortgage, have no financial worries and live happily ever after. And we all know that this is a dream and reality is their are financial struggles and their are people struggling to pay their bills. I wanted to go over and inform you of different options that you have as a mortgage holder during these difficult times. All of these options are available to you before what should always be your last and final resort which is foreclosure.

 

If you are unaware that the U.S. economy is struggling you are presently living under a rock! That said there are options available to you if you do find yourself in financial disarray.

 

1) Loan Modification- contact your lender and see what they can do. The lender will modify your loan meaning the payment based upon your current income.

2) Forbearance Agreement- If you have fallen behind on your mortgage and are in risk of heading to foreclosure you can work this written agreement out with your lenders loss mitigation department. It will allow you to work a repayment plan to catch up on the past due payments so that the bank does not have to foreclose.

3) Short Sale- If you are selling your home and owe more than the home is worth you arrange a short sale. It is an agreement with your lender to sell the your home ans the lender will take a loss on the property. Allot of times lenders would rather take less on the payoff than bear the expense of going through foreclosure.

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