Avoiding Foreclosure
Apr 1st, 2008 @ 4:50 PM by MortgageMentor
Many homeowners are finding themselves facing mortgage problems these days. Whether the problem is the current market values or you have experienced a sudden job loss or illness, there are solutions out there. If you are concerned about keeping up with your mortgage problems, the best thing to do is contact a non-profit counseling agency. Be sure that you pick one that is approved by HUD, available here: http://www.hud.gov/offices/hsg/sfh/hcc/hcc_home.cfm
A counselor will help you to review your financial situation; he or she may find options that you did not know were available. Counselors can also walk you through the various kinds of “workout options” that lenders generally offer, helping you to decide which one works best for you. Many counselors help create monthly budgets, and even help you find other financial or legal assistance if you need it. Some will phone the lender on your behalf, to discuss how you can reach an agreeable plan.
If you believe, after meeting with a counselor, that you can no longer afford your home, there are still solutions. The lender may allow you to place the home on the market. If its value has dropped below the amount you owe, your lender may agree to accept a payoff that is less, or let a buyer assume a loan that was not originally assumable. The important thing is to communicate – and not give up!
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Needing to re-fi desperately due to high credit card debt. Have a low (horrible) credit score. Have never been late with a mortgage payment, but credit card companies are hounding us. Our 1st is an ARM and our 2nd is not. Threats to garnishee salary are being made and if that happens – mortgage payments will become late.