Upside Down Mortgage

Posts Tagged ‘upside down’

I'm currently seriously past due on my 2nd mortgage. I called my bank right now to once again discuss options. The gentleman said your loan has been "charged off." He said, "give me some time to see if i can pull it back into the loss mitigation dept."

He's gonna call me back tomorrow, but until then I just want to know what charge off means in mortgage term.

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My situation is this. We owe more than our home is worth and we are having a difficult time making payments. We want to refinance but need to know how being upside down would affect our decision.

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.

When a homeowner is upside down on his or her current mortgage, buying another home is far from what would be on his/her mind. But, it should not be. After all, most people who are upside down end up selling their current homes and move into smaller homes. So, while you are trying to find a solution of how to get out of your mortgage that you currently hold, you might want to also think about what you are going to do after you have sold or got rid of that mortgage that is causing you a headache.

Since the home value has dropped and the mortgage balance has not, people can easily find themselves having to downsize. Selling the home that they are upside down on is a natural solution. But with the real estate market the way it is, it might be hard to sell for what you are hoping for. You can either cough up the difference or let the bank foreclose and take the home. But that will destroy your credit and most people think that it means they cannot get into another home. This is not always the case. This book called "Who Says You Can't Buy a Home!: How to Put Credit Problems, Down Payment Challenges, and Income Issues Behind You -- And Get a Mortgage Now" can show you many ways of how you can buy a home even when your credit has been shot because you were upside down and then foreclosed on.

Buy Who Says You Can't Buy a Home!: How to Put Credit Problems, Down Payment Challenges, and Income Issues Behind You -- And Get a Mortgage Now (Paperback) at Amazon