Foreclosure Options – Behind On My Mortgage Payments

Getting behind on a mortgage stinks! Not only does it hurt your credit, it can hurt your ego. No one likes to go to the water cooler at work and talk about their mortgage and credit problems. So if you have found yourself in a jam with your mortgage here are some foreclosure options for you in case no one is talking about them around the break room at work.

Foreclosure Options

Call you lender – If you have had some type of financial hardship your lender is more likely to work with you on a loan modification than if you just decided that you didn’t want to make payments anymore because your mortgage balance is more then your home’s value. By talking to your lender you can put them on notice that you know you have a problem and you are looking for solutions.

Consider getting professional loan modification help – There are a lot of resources to look into from government sponsored or approved non profit credit and counseling agencies to paid professional law firms. Make sure that you check with the Better Business Bureau and ask for references to ensure that the company you decide to reach out to is legitimate. There are a lot of foreclosure and mortgage modification scams out there.

Check with HAMP and HARP to see what options you may have from the US Government – There are some government programs designed to help you with loan modification help or a mortgage refinance if you have gotten behind on your mortgage.

Short Sale your home – This option is one that can allow you to get out of your mortgage and be done with any future financial responsibilities from your home and the mortgage. You will have to get approval from your mortgage company to sell your home for less than what you owe them. You also want to make sure that you negotiate with your lender to ensure that they are not going to come after you in the future for any deficiency balances from letting you sell the home for less than what you owe them. You may have some tax consequences to deal with, so make sure that you ask a tax professional about what you could face if you do short sale your home.

Offer a deed in lieu of foreclosure – Deed in lieu of foreclosure is when you give your home to your lender and they agree to flat out take if from you without imposing any future financial burdens on you because of the deficit that you caused when you gave the home to the bank. You will need to get approval from your lender to do this.

Just let the home go into foreclosure – This is probably the least preferable option as it has the longest running impacts on your in terms of your credit. Letting your home go into foreclosure also has potentially the largest negative financial impact on your pocketbook stemming from the deficit between the your mortgage balance and the amount that your bank eventually lets your home sold for after they have taken it from you.

Catch up quick – If you happen to have an IRA with money in it, you may be able to tap into it to get your mortgage payments caught back up.You may be able to tap into your IRA without penalty under the right circumstances like a medical emergency got you behind. You should weigh your situation carefully and talk to your financial planner if you are considering this option.

Hopefully with this list you have some ideas about what options you have with getting behind on your mortgage. Remember, if you do get behind, take quick action – the quicker the better. If you want to speak to someone about your situation, please complete the form below.