Has the mortgage crisis hit your Reno, Tahoe home?

Did you obtain an adjustable rate mortgage when purchasing your house? Are you now in danger of losing your house? There may be help for you.

The “experts” are recommending a variety of ways to attack your problem. Here are the do’s and don’ts:

1. Don’t do anything at all. This is the absolute worst thing you can do. Ignoring letters from lenders will only result in the worst case scenario: foreclosure. Try to open up lines of communication with your lender to see if you can delay any action from their end.

2. Asking your lender to help: Mortgage companies and other real estate lenders would NOT rather go into foreclosure, because generally it creates a loss for them, not to mention that they are the ones who will have to liquidate the property. The lender may be willing to extend the payoff period, lower your mortgage interest rate, or make up late payments on a new payment plan.

3. Have a plan: Instead of waving the white flag, maybe you should request a loan modification plan. Tell the institution how much you can now afford to pay. They just may listen.

4. Other Assistance: Believe it or not, the Federal Housing Administration can help the subprime lender who can pay the starter rate on their mortgage, but not the adjusted higher payments. Those with FHA secured loans can call 800-569-4287 for help. Another resource is the Hope Now alliance at 888-985-HOPE. Hope Now has counselors, servicers, investors and others that help subprime lenders. Some credit counseling services are helping by being liaisons between lenders and mortgage holders by working out loan modifications. Novadebt, a non-profit service based in Freehold NJ will help homeowners with both credit and mortgage issues.

It is important to remember to keep copies of all correspondence with your lender, and keep notes of any phone conversations with the name of the person you talked with, the date and time, and notes of the jest of the conversation. And, expect the unexpected. Try to work with your lender…and DO NOT ignore them!

Filed under: CURRENT STRATEGIES, LOAN INFORMATION, UNCATEGORIZED