what is the best thing to do if you fall behind on mortgage payments and you will not be able to refinance?

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no re-financing due InsolvenzArm loans and interest rates to 9.39% and every six months, or down to a certain extent.
Our current rate is 7.75% on $ 168,000 loan with lower interest rates, we want to explore refinancing. Are there any companies that do all the work for us? (This is where we work in the best possible financing.) If not, where do I start? I do not want to meet a ton of credit applications before me all the conditions of the loan. Thank you!

8 Comments
  1. Reply
    Landlord
    February 9, 2011 at 3:37 am

    Sell. The interest rates will not be going down anytime soon.

  2. Reply
    Bullie Baby
    February 9, 2011 at 3:59 am

    I would consider the following:

    Selling your home. Cash in on any retirement accounts. Ask family for help. Have your family or friends purchase the home for you and you make payments to them…since you have bad credit and would pay higher interest. Let the bank take it…bad choice but it happens?!

  3. Reply
    I'm My Son's Mom
    February 9, 2011 at 4:01 am

    well, let me tell you this is happening to my son right now….he has tried to sell the property but with the market being so down and falling more every day…he has been unable to sell. as of april he defaulted and on august 18th his home will be auctioned off.

    you could let it go into foreclosure and walk away…that is happening everywhere right now. you will be able to purchase property again (federal law gives you that right 24 months after foreclosure date).

    you should also contact your mortgage co. first and see if they can offer you any assistance.

    lastly, let me suggest —do not accept any of these offers on the internet where they guarantee to REFI you…..it will again be a scam similar to the Arm and you’ll be farther down than you are now.

    what you are looking for is a refi with a 30 yr fixed no early prepay penalty and this is really hard to find in this market right now unless you have exceptional credit.

    good luck and stay away from the scammers.

  4. Reply
    JordTeic
    February 9, 2011 at 4:41 am

    Short Sell.

    This is pretty much a damage-control way of taking care of an issue like you’re in. When you Short-Sell, let the lender know that you can’t make payments and you want to sell. You may sell the house for less than you owe on it, and you may possibly not make your money back, but those are always risks your bank and you take with real estate.

    This way, your credit won’t go down again and a bank doesn’t want to go through a foreclosure if they don’t have to.

  5. Reply
    Mary B
    February 9, 2011 at 5:06 am

    Call the lender and let them know that you absolutely cannot do those payments, and it will force you into foreclosure. I would speak to the loss litigation department and they have very broad authority to help you.

    Foreclosure is expensive, and so is moving.

    Try that as a last ditch effort before selling and see if it works.

    I wish you luck…anyone can find themselves in that situation.

  6. Reply
    linkus86
    February 9, 2011 at 6:05 am

    For the sake of time I suggest speaking to the lender directly to see if immediate arrangements can be made. If purchased as an FHA or VA loan, talk to them too.

    Second, put the house for sale immediately (the same day you speak to the lender) and price the house below market value, but just above Realtor commissions and loan payoff.

  7. Reply
    J k
    February 9, 2011 at 6:56 am

    Did you already speak w/ a lender? If your bankruptcy was more than 2 years ago it shouldn’t affect your application so long as you show that from that point on you’ve been taking care of your bills. I suggest you call your lender or one you feel comfortable with and ask about their different programs. Hopefully you will be able to refi. If not, you may want to consider getting a Realtor quick (if you’re in CA call/email me) and listing your property before things get worse. If he/she suggests a short sale, where the home would sell less than the amount you borrowed to buy it, you would need to have your Realtor contact your lender w/ your permission, and obtain the needed paperwork for a short sale. It’s almost like doing a loan app, plus you’ll need to write a letter to them explaining why you can no longer afford the payments. A short sale will save you from foreclosure w/out hurting your credit like a foreclosure would. Good luck

  8. Reply
    Terry
    February 9, 2011 at 7:35 am

    Call a mortgage broker – actually more than one. Ask them to find you the best refinance with zero points,and preferably reduced closing costs.

    Points and closing costs on a new loan can soon eat up any gains you get from the reduced mortgage payment (depending on how long you plan to stay in the house).

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