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 [content removed by moderator for being self promotional]
What should you do when you are up-side-down on your mortgage?