Upside Down Mortgage

Mortgage Default Assistance

Question: Who & where do I start for assistance?

I inherited my home when my parent passed away. I'm now listed on the deed and have paid the mortgage on time for 3 yrs. Mom had an adjustable rate 3 yrs ago. Mortgage payment has jumped another $600.00 extra monthly.It's now $2000.00monthly. It was 4 yrs ago when I I filed for chapter 7. Now that my student loan is out of default do I contact the mortgage company to apply in my name or a broker to look for a lower mortgage home.? Also do I get the equity if any from paying this mortgage for 3 yrs?

Answer: First, I would contact a mortgage broker who can do both conventional and FHA loans. If you're in Nevada or California, contact me through my site www.MLS-Nevada.com and I'll point you in the right direction.

See if you can qualify for a refinance at a fixed rate with a monthly payment lower than you're currently paying.

About your equity:
Equity is the value of the home minus how much is owed on the home (and closing costs). So, whatever equity is in the house is yours. UNLESS you lose the house to foreclosure. Laws vary state to state, but in Nevada when the bank repossesses a home or it's sold at auction...the owner gets nothing regardless of how much equity was in the home.

If refinancing isn't possible right now, and you can't make up the difference in payments, consider renting out a room to pay the extra $600 until your credit is in better shape to refinance...just a thought.

One more point I should mention:
If your name is not on the loan, and there's no equity or negative equity in the home, and you simply want to walk away...as long as you're sure the loan is not in your name, it should not affect your credit if the home is foreclosed on. Laws vary state to state, but in Nevada it would take 5-8 months of non payment before you would be evicted. Check with an attorney before making a decision as described above!

Mortgage Assistance : What Happens if You Default on a Second Mortgage?

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