What should you do when you are up-side-down on your mortgage?

You have several options:
#1 Contact your lender to work out a payment plan if you are behind.
#2 Try to ask for a loan modification-make sure you follow exactly the lender's guildlines-This process may take from 3-6 months, and you may or may not qualify. I know, it's frustrating. Sometimes, lenders even come back to tell borrowers that they are qualified for a lower interest rate, and yet their monthly payment ends up higher than they were originally (since many of these mortgages are interest only loan with an adjustable rates, now lenders only want to refinance or modify the loan with both interest and principal-this results a higher monthly payment that there are no ways the borrowers can afford! But, now here is another problem that the borrowers have to face, a 'ding' to their credit since they are late on their payments while waiting months for the lenders's approval on their loan modification. There are no turning back now that their credits have just been ruined. So, often, borrowers just give up and let things go without hope.  In reality, the problem is still there but many unhappy and angry homeowners just don't know what to do next.  They don't where they will move to now that they are on the verge of loosing their homes.
#4 If this is what happening to you, to your friends or family members you should immediately contact your real estate attorney and your real estate agent to explore your options.
The sooner you find out about your rights and what options available to best suit you, the better you are in negotiating with your lenders.
Note: All cases are varied from one another, should you have any questions on loan modification, shortsale, or foreclosure, feel free to email me
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July 21 2009 - San Jose
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If it is your intention to remain in your home, contact an experienced attorney in your area who does loan modifications to renegotiate your loan.  If you intend to move, contact an experienced real estate agent to handle your short sale.  You can also work with an attorney or short sale company to handle negotiations with your lender, however, do not pay anything up front for this service.  Reputable companies will get their fees directly from the lender.
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July 21 2009
#5 Keep pay your mortgage and don't call for anyone!
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July 21 2009
#6 Prove hardship, and request a temp payment reduction during the home mod process.

#7 If you are denied the home affordability plan, or if it's taking too long, and the mortgage company wants to starrt foreclosure, submit the in-house paperwork for another type of home mod, to delay things until they catch up with their paperwork. Otherwise saying, flood them with paperwork!
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July 23 2009
A survey by the California Association of Realtors found that sales of California real estate have actually increased from the end of 2008 to the beginning of 2009. Survey respondents indicated that attractive prices and low mortgage rates were the leading factors motivating them to buy. The glut of bank-owned properties on the market has kept California's housing inventory stocked, giving buyers many options. First-timers are leading the market spurred on by record low interest rates and the greatest affordability. Using the internet and area papers, you can soon get an idea of the market worth for different types of homes in the area. Identifying the right market & finding the best property holds the key to success.
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July 24 2009
it depends no what your goal is
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July 25 2009
#8 assuming you're in a good neighborhood with the home you like, pay extra principal diligently and remove the debt. Then no matter what its worth in 12-15 years you're debt free. best of luck.
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July 25 2009
 
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