(ARA) - Are you two months or more past due on your mortgage payments and sweating it out? If so you're not alone. Between the sub-prime mortgage crisis, rising interest rates and a tough economy, thousands of Americans are in the same situation, according to RealtyTrac, the leading online marketplace for foreclosure properties.Whether you've already received a warning letter from the bank, or are anticipating the arrival of one very soon, there are some proactive things you can do to save your home from foreclosure before it's too late.
1) Forbearance
In the short term, it would be a good idea to get in touch with your banker and let them know you're struggling to make your payments. If you've been a good customer, they will want to work with you. Among your options: working out a deal where you make payments at a reduced rate, or suspending payments altogether for a certain amount of time until you're back on your feet. This is a good tactic if you've been temporarily disabled due to injury or illness.
2) Mortgage modification
Another possibility is to modify your existing mortgage. This is where you get the lender to agree to an interest rate reduction, or to a longer payback period. It's a lot like refinancing, only you don't have to get another lender involved or credit-qualify.
3) Died in lieu of foreclosure
When you're in a tough situation, this may be the best option because in the end everyone wins. By doing a died in lieu, which is where the homeowner simply hands the home deed over to the lender and walks away, the homeowners is able to save their credit, and the lender avoids a costly foreclosure process.
Whether your goal is to stay in your home or simply to get out of it without going through foreclosure, you can turn to us RealtyOPTIONS for help. WE will work with you to come up with the plan that is in your best interest, then contact the lender on your behalf and work directly with them to reach a deal that's acceptable to all parties.
