Is it wise to stop making payments and let the bank restructure our loan?

Do we have to go that route to get help?

We have never been late before and we both have good credit, but we are having a very difficult time making our mortgage payments - probably like a lot of people today.

Does anyone have any suggestions?

Thank you for your help and advice.

Can we just stop making payments? is a post from: Upside Down Mortgage

I'm trying to find out what the first step is and if my lender will be willing. My understanding of the new bill is that it is voluntary are the part of the lender, no mandatory.

I’m Upside Down. How Can the New Bill Help Me? is a post from: Upside Down Mortgage

What about when it's on short sale. If it's still the process, am I still liable to pay for the property tax I already owe? What about those weeks or months that is up for short sale, am I still liable for prop taxes during those weeks and months? pls someone help! I feel like my lender is lying to me about wiping the property tax. I'm so confused, scared, and not sure what to do!

Questions about Short Sale, Property Tax and Loan Modification is a post from: Upside Down Mortgage

Buy Understanding Mortgages: A Beginners Guide to Mortgages and Refinancing for the First Time Homebuyers (Paperback) at Amazon

A Beginners Guide to Mortgages and Refinancing for first time home buyers

A Beginners Guide to Mortgages and Refinancing for First Time Homebuyers is a post from: Upside Down Mortgage

What is a Cancellation of Debt?

If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the canceled amount in income for tax purposes, depending on the circumstances. When you borrowed the money you were not required to include the loan proceeds in income because you had an obligation to repay the lender. When that obligation is subsequently forgiven, the amount you received as loan proceeds is normally reportable as income because you no longer have an obligation to repay the lender. The lender is usually required to report the amount of the canceled debt to you and the IRS on a Form 1099-C, Cancellation of Debt.

Example of a Cancellation of Debt

Here’s a very simplified example of how cancellation of debt works. You borrow $10,000 and default on the loan after paying back $2,000. If the lender is unable to collect the remaining debt from you, there is a cancellation of debt of $8,000, which generally is taxable income to you.

Is it likely that your debt will be canceled?

When people cannot pay their mortgage payments, they hope that their debts will be cancelled, especially when they have upside down mortgages. However, the reality is that all lenders will do anything to recoup some of the money, if not all, first. Cancelling the debts is really something that they will not do if they can help it at all.

Cancellation of Debt is a post from: Upside Down Mortgage

So many people cite personal finance problems as a leading cause of divorce and long-term, debilitating stress that it is rather surprising so few products are available that help people manage this important aspect of life. As well, given the severity of such problems, it stands to reason that dealing with financial problems needs to be done effectively. This will not only allow you to improve your own, financial and mental health, but will allow you to avoid dealing with difficult debt collectors.

The easiest way to start dealing with debt is to figure out your total debt obligations. Organize unpaid bills and debt from the lowest amount due to the largest. With these payments in mind, determine the amount you can repay every month. You will need to complete a budget to arrive at this number. For a more comprehensive strategy, prioritize debt based on the rates your creditors charge you. High-rate debt will take a higher priority than low-rate debt.

Debts that need to be paid immediately should always take priority. If they remain unpaid, the creditors have the ability to take severe action against you, which is something you do not want. Past due rent and mortgage payments are examples of ultra-high priority debts. If you are seriously past due and cannot repay any debt without risk, consider delaying payments until a full budget has been completed, which we discuss next.

The next step when dealing with debt and managing personal finances is to fine-tune your budget. This helps you calculate your monthly expenses and determine if there is anything "extra" that can get earmarked for debt repayment. Another advantage with preparing a budget is that you can pinpoint areas that you can reduce spending and, thereby, start saving money in terms of expenses.

If you are far past due, one way you can start dealing with debt is to talk with your creditors. Once you have completed a budget and decided the amount that you can afford to pay each month, you should negotiate with your creditors (if your financial situation warrants it) and agree on an amount that you can repay each month. You can either interact with them over the phone or write them a letter mentioning about your current financial situation.

Now that lenders are taking a bit of heat about responsible lending practices, nearly all of them offer third-party services to people who are having a tough time dealing with debt. These no-cost services will offer tips and knowledge about how to remedy your debt situation and regain control of your personal finances. If you are having problems surviving from month to month or if you are stressed to the max about whether you can overcome your debt, you should consider taking advantage of such programs.

Since every situation is unique, it becomes difficult to give general recommendations about dealing with debt and handling personal finances. However, the above guidelines certainly provide a basic overview. To take your personal finances to the next level, you should visit sites like Help Fix My Finances.com to work through your own, unique financial plan.

Dealing With Debt Effectively is a post from: Upside Down Mortgage

I owe more than my house is worth? Felt like I was scammed is a post from: Upside Down Mortgage

How to Refinance with an Upside Down Mortgage? is a post from: Upside Down Mortgage

How do I Refinance My House when I owe More than it is Worth? is a post from: Upside Down Mortgage