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Mortgage Help

Mortgage Help.

Many homeowners currently face losing their homes to foreclosure. As home values continue to decline across the nation, adjustable rate mortgages start adjusting, and sub-prime borrowers struggle to make payments, we are looking at one of the largest housing problems in a long time. If you are currently behind on mortgage payments, you may have options. Please keep in mind we are not a legal service, and you should always consult an attorney prior to making large financial decisions.
   
Options to Avoid Foreclosure
       
1. Sell your home:   
       
A lot of people think they are entitled to home ownership because it is the "American Dream". The truth of the matter is that if you are behind on your mortgage payments one of the first things you should consider doing is selling your home, and then purchasing a cheaper home, or renting a cheaper home. Selling a home can be a very sad and difficult choice to make, but when it is a matter of necessity, you should just be grateful that you are able to sell it and get out from under it.   
       
2. Short Sale:   
       
A short sale is something that can be used when you want to sell your home, but you owe more on the property than what it is valued. You will need to call your bank and try to negotiate with them in order for them to take less than what is owed. Usually to be approved, the home will have needed to be listed for sale for at least 6 months, you will need to be late on your mortgage payments, and your income will have to be low compared to your monthly debts. If you are still spending money on luxuries, they will most likely not approve you. In order to be approved they will ask for paystubs, bank statements, retirement account statements, and a letter explaining your situation. If this is something you are interested in doing, you will want to call your bank right away.   
       
3. Bankruptcy:   
   
Bankruptcy is an option of last resort for many people. Although, sometimes there are no other options and in some types of bankruptcy you are able to maintain home ownership. If you are considering bankruptcy, you will want to consult with an attorney as it is a serious matter, and the consequences are long lasting.   
   
4. Hope Now:   
   
Hope Now is an agency that was set up to counsel people and help people who have fallen behind on mortgage payments. They provide free advice, and you can reach them at Hope Now 1-888-995-HOPE or the website is http://www.hopenow.com.   
       
5. Refinance:   
   
If you are behind on your mortgage payments, you may want to contact your mortgage company and see if you qualify for a refinance. You may qualify for a lower interest rate and monthly payment. You may also want to take a look at paying off high interest credit cards with high monthly payments by using the equity in your home. This could potentially lower your outgoing monthly cash flow.   
       
In conclusion, there are a lot of options for people who are struggling with their mortgage payments, and you should investigate all of your potential options.