Upside Down Mortgage

Mortgage Modification Options

Question: Loan Modification Question please help?

I cannot afford to pay for my house anymore, I have recently lost my job, and i cannot afford to pay my house mortgage. I contacted the mortgage company and they have send me a sheet to fill out, now I don't know which option should i pick.

Should i do PAYMENT EXTENSION, LOAN MODIFICATION, SHORT SALE or DEED IN LIEU.

Does anybody know which is the best option. thank you so much in advance for your good advice.

Answer: That depends upon your situation and your goal.

Payment extension - They give you more time to get back into a position to make your payments. Ask yourself: How soon until you are re-employed and can make payments again?

Loan Mod - They lower the payment somehow. Lower interest rate, longer term, even lower the balance for you. That would work if smaller payments would make it work for you.

Short sale - You sell your house, but don't net enough to pay off what you owe. They "forgive" the difference, but might consider it earned income (that you'll pay taxes on next year).

Deed in Lieu of Foreclosure - You just sign the house back over to the lender instead of fighting in court over the foreclosure proceedings.

Note that in the first two, you stay in the house. In the last two, you move out.

Mortgage Modification Loans

If you're new around here, you might want to subscribe to our Upside-Down Mortgage RSS feed. It's quite likely the only feed of it's type on the internet!