Tweet

Save Our Home: Mortgage Help for Struggling Homeowners

Guest post by: Bud Gragg

Article Overview: If you're struggling financially and you're looking for mortgage help to save your home, we're sorry but we don't have any easy answers for you. You could try doing what so many of us did earlier this decade-borrow against your home. But that assumes you have equity to borrow against and that there's no chance your house's value won't go down and leave you underwater on your mortgage and loan. Given the tsunami of underwater mortgages right now, with more to come, that's not a very good option.

Save Our Home: Mortgage Help for Struggling Homeowners

If you're struggling financially and you're looking for mortgage help to save your home, we're sorry but we don't have any easy answers for you. You could try doing what so many of us did earlier this decade—borrow against your home.

But that assumes you have equity to borrow against and that there's no chance your house's value won't go down and leave you underwater on your mortgage and loan.

Given the tsunami of underwater mortgages right now, with more to come, that's not a very good option.

Now, you can apply for a loan modification. But you need to know going in that only 2.8% of the homeowners who have applied thus far have gotten this kind of help with their mortgages. And some of this form of “help” isn't that helpful at all! Here are the options with mortgage modifications:

1. Extend the term of the mortgage. In effect, this lowers your monthly payments. It also means you're going to be paying that mortgage longer, and paying more on it, than you're contracted to pay now!

2. Lowering your monthly payment. This is pretty much the same help, if you want to call it that, as you're getting in number 1.

3. Reduce the interest rate on your mortgage. This option could help your bottom line, as long as you're not stuck in an ARM. An ARM is a mortgage that resets to reflect the current interest rate. If you get a mortgage modification and you're in an ARM, you may well end up screwed down the road when your ARM resets.

So let's look at these options and think about when it might make sense to take them—if you can get approved. The first 2 options might be helpful if you only have a short time left with your mortgage and you have reasonable expectations that your financial situation is going to improve. At the very least, those options will keep you from having to walk away from a mortgage after you've thrown, say, over $100,000 or so into it.

If you don't have an ARM, the third option is the only one that will actually save you money. And if the only problem you're having right now is a financial setback, this option might allow you to save your home. Again, if you can get it.

So what happens to the rest of us—the people who can't qualify for mortgage modifications? As a rule, we don't end up being able to save our homes. We go through short sales or we foreclose, and we go on to new lives without the house and the mortgage that was killing our finances.

But, there is one option that, if you plan it right and you're lucky, could help you save your home even after a short sale . . .

Hire a Realtor to negotiate a short sale with your lender, and then sell your house to someone who's willing to rent it to you! That's what Kristin and I actually did, and now we’re still living in our home and we're paying half of what we used to pay on our mortgage!

Please don’t stress about finding a professional, certified Realtor who specializes in short sales. Just contact us and we’ll be happy to help you find a great short sale Realtor in your area.

Now, this is tricky. Your lender might want you to sign a document saying that you're not getting any benefit out of selling your home. It’s called an Arms Length Transaction Agreement. If that happens, you'll have to move or you'll be committing fraud.

We wish we could give you more mortgage help that will actually save your home, but the situation out there is pretty bleak right now. If you can, look on the bright side—you might have to manage your way through a short sale or a foreclosure, but you'll be able to start a new life!

Related Articles
  Underwater Mortgage Loan Modification: Just a Band-Aid?
  Do You Qualify for the Obama Loan Modification Plan?
  Deed in Lieu of Foreclosure - Might Be An Answer
  Home Short Sales: What They Are, How They Can Help
  LTV: The Key to the Underwater Mortgage
  Florida Homeowners Insurance Provider
  How Did We Get Here? Why Underwater Mortgages Are at an All-Time High
  Dealing with the Bank on Your Underwater Mortgage Short Sale
  Should I pay off my home mortgage?
  Debt Consolidation and Refinancing – Is it Right for You?
  No Money Down Mortgage – No Strings Attached
  Make sure your Mortgage gets Paid!
  Short Sale? Foreclosure? Options for the Underwater Mortgage Holder
  How to do a Short Sale on Your Underwater Mortgage and Avoid Foreclosure
  Need Underwater Mortgage Help? Here’s Where to Turn
  A Stroll through the Short Sale Process
  More People Walking Away from Underwater Mortgages
  What is an Underwater Mortgage?
  Underwater Mortgage Solutions: What Is a Short Sale?
  Underwater Mortgage Meltdown: What Caused This Mess?

Article Tags: bank short sale, home short sales, house short sale, how to do a short sale, how to short sale, mortgage short sale, short sale, short sale definition, short sale foreclosure, short sale help, short sale information, short sale process, short sale training, what is short sale
Referred by: http://www.meetkarennewman.com/



Related Forum Posts
Re: Hi - Thanks guys! I have been helping Real Estate and Mortgage professionals generate leads from the Internet for 5 years now!. I'd be glad to exchange some ideas. Have a great day=)
Re: Trade Shows - Are They Worth It? - HI, I have used trade shows (not participated) to collect potential clients. For example, the Home & Garden Industry is extremely behind the time in regards to their websites. I attended an Home & Garden Expo in Denver and collected all the companies contact information. I plan on cold calling & mailing information to each business. It also gave me time to research the industry more, talk directly to the owners in many cases, and learn more about what they need. Jeff
Re: Are you satisfied with your ISP's services? - The same in my case my ISP holds my phone number. What i don't like is that if i have a technical problem the process take to much time and they will never hurry up to solve the problem. Save God this it not happening to often. Another think that bugs me is the advertising .... to many offers and advertisements that are annoying people.
Time to get rich in real estate? - Another thing I'd do if I had a million bucks...or more... would be to start buying up distressed real estate. Sounds ghoulish, I know, but prices are down so much now that anyone who can afford to buy houses and hold onto them until the market "corrects" itself, could make a bundle in a few years. I've been reading a great deal about the current mortgage crisis, and I've got to say that whatever genius came up with the Adjustable Rate Mortgage - and worse, actually persuaded people to buy using it - deserves to be boiled in his own oil and buried with a spring of holly through his heart! What a ridiculous thing - just asking for trouble!
Try wikipedia.com for more information - That depends what type of business you are involved in. Maybe if you share that, we can help you a little better. I work mostly in the Work at Home industry so my advice would only be along those lines.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Are You An Accidental Consultant?

Mistakes Made by New or Inexperienced Sales Staff

Creating a Better Place to Work

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.