Mortgage Assistance – What Options are Ready For Homeowners and How Do You Get Started

Mortgage Assistance – What Options are Ready For Homeowners and How Do You Get Started

Article by Nick Adama

In recent times a lot of property owners have found themselves in need of some financial help. With high rates of unemployment and hours and wages cut back, more people are finding meeting their financial responsibilities is becoming harder every time they turn around.

Priorities have to be set and the first one needs to be food for the family; and those who hold your mortage don’t seem to be very sympathetic for the people who find themselves in this dilemma. Let’s take a look at what kind of help is out there.For those who live in areas where home prices have not dropped to the ground, refinancing might be the answer to their troubles. If a homeowner bought their home when mortgage rates were at the peak, then they might be able to refinance their loan at a lower rate. This would lessen the monthly budget and for some this is exactly what they are looking for. But banks shy away from refinancing anyone who has can now show solid employment in the recent past.

Even being hired in a new line of business, their credit rating may have been affected by past due payments. But there is one point of good news. The federal government has assigned billions of dollars in aid to help these get over their nerves and to provide mortgage help to those that need it.Then there are the less fortunate home owners. Millions of people live in houses that are located in areas where house prices have fallen through the basement. In some areas values have plummeted over 20% in the last two years. For those people who bought when prices were high, options are few. Many of them now are in an upside down financial position.

How do they deal with their lender now? They often have to collect interest, along with 100% of the money owed. If one of the unlucky consumers falls behind on the mortgage, they have limited answers. Selling their property won’t produce enough money to pay off the note. For these people, mortgage help needs to happen with a note modification. This is when the bank permanently changes the terms of the loan to assist the hardship victim.

What other types of foreclosure help are available? Well, if the foreclosure victim can find another person willing to buy their home, but not at a high enough amount that will eliminate the entire debt, the foreclosure victim could be able to negotiate a short sale. A short sale is when the bank agrees to forgive any amount of money still owed on a debt once a home has sold. Most banks will not agree to this unless they have few other options (such as a note modification. But the costs of eviction and foreclosure can be an excellent way to argue for it. But don’t forget, there can be consequences to the home owner. Unless the outstanding balance is negotiated with the lender, they could try to collect a deficiency judgment. This is why we usually advise looking for an experienced company to handle your short sale.

If the short sale is denied, a different solution might be to find a renter and get a lease on the property for an amount that will cover the mortgage payment and taxes. But that can be complicated since many people don’t know anything about being a landlord. There are also unforeseen expenses and worries involved with being a landlord. Another issue is that your mortgage contract is probably for an owner occupied house and not a leased property. But the point here is that regardless of your situation is, there is almost always mortgage help available that doesn’t involve losing your home to foreclosure.

About the Author

You can read more of Nick’s articles by visiting his site, listed below. He specializes in publishing information that is useful to homeowners in danger of losing their properties to foreclosure, and who are looking for options to save their homes and repair their credit. Visit the site today to download an e-book explaining the basics of the foreclosure process.

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