Here’s a step-by-step action plan to take in the event that your mortgage is about to start adjusting.1. Try to refi. If you are worried about being upside down on your home (i.e., owing more than it’s worth), you might need to assess how sustainable this home is for you. If you simply bought way more home than you can ever realistically afford with a reasonable mortgage, you should jump straight to #3 and try to sell your home. If other events, like a temporary loss of income, are making it difficult for you to afford your home now but you think you can afford it over the long haul, work with an ethical mortgage broker to see if it makes sense for you to refinance your mortgage, and whether any affordable mortgage options that are sustainable over the long term are available to you.2. Loan modification. Call your lender!! Ask for the loss mitigation department; put together the hardship package they request (usually a bunch of your financial paperwork to show that you really can’t afford the upcoming adjustment); and then try to negotiate a few months with no payment, a reduction in the balance of your loan based on fair market value, an extension of the low-payment period for several more years, a reduction in interest rate, etc. Lenders vary widely in their amenability to making these sorts of arrangements.3. Get extreme about increasing your income. If you truly want to keep your home, consider going to extremes. I’ve seen people avoid foreclosure by renting out rooms, taking second jobs or taking in freelance work on the side.4. Short sale. If you just bought way more home than you can ever realistically afford, trying to liquidate your home through a short sale is a great option. Work with a Realtor who has experience successfully representing sellers in short sales. I’ve even seen homeowners have real estate investor friends purchase their home through a short sale, which may give the seller the opportunity to lease and later buy the home back. I now have a Broker working with me who is familiar with the Short-Sale process and can help you navigate!!!
Similar Posts:
If you enjoyed this post, make sure you subscribe to my RSS feed!
Janeese Jackson
Bill Norris
0 Responses to “WHAT TO DO IF YOUR MORTGAGE IS ADJUSTING!”