Can we just stop making payments?
July 12th, 2009
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.
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Posted in Behind On Mortgage, Foreclosure, Help with mortgage, Home Loan Refinancing, Loan Modification Help, Refinance Questions, Upside Down Mortgage FAQs | 
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You MUST NOT just stop making payments or the bank will consider you in default. You must talk with the bank now to see what they might be able to do to help. You have what they refer to as a house ‘under water’. That’s when the mortgage is more than what the house is worth. Sucks but that’s what about a million americans are facing right now. Some banks/mortgage companies are willing to work with folks, some aren’t. You have to talk to them now though and get things moving.