If your interest rate is high you can possibly get a loan modification. You may rent your property to help cover the expenses. And you can sell the home. Every situation is unique. But it sounds like you are doing the right thing and exploring your options early instead of later.
I just found this post. I am so sorry some here hasn't poited you in the right direction yet.
The answer to your question is The Servicemembers Civil Relief Act.
This is a link to the complete SCRA Guidelines:
Just a blurb from the site:
Servicemembers Civil Relief Act
The Servicemember's Civil Relief Act (SCRA) expanded and improved the former Soldiers' and Sailors' Civil Relief Act (SSCRA). The SCRA provides a wide range of protections for individuals entering, called to active duty in the military, or deployed servicemembers. It is intended to postpone or suspend certain civil obligations to enable service members to devote full attention to duty and relieve stress on the family members of those deployed servicemembers. A few examples of such obligations you may be protected against are:
Outstanding credit card debt
Terminations of lease.
There are also Individual State Programs and Laws for military personell on active duty.
In New Jeresy they enacted:
New Jersey Servicemembers' Civil Relief Act of 2006
I would be willing to assist you at no charge.
Thank You for your service!
On a side note, be careful be safe, and come home in one piece. You have the hardest job there is, thank you for taking it.
Resolve, speak with your Attorney (provided by the military), have Him/Her resolve your issue(s); while you are "ACTIVE".
Further resolve, New Jersey (USA) would like to take this time in thanking you for all that you have done or will do to protect and serve our country.
THANK YOU SIR.
Make it home
God Bless you and yours
Thank you for taking care of our country and assisting those in need.
Wife of military member
If you are unable to afford your home any longer, and you are "upside down" on your equity than a short-sale may be your best option. One of the situations where a person can achieve a quick short-sale without even missing a payment is if the hardship is caused by military deployment or relocation. Are you deployed now? If you are deployed then your lender is actually not allowed to report late payments to your credit. I can give you information to help you make the decision that you will feel the most comfortable with. Feel free to contact me if you would like.
Heritage Texas Country Properties
I am giving you a link to some helpful information. There are protections in place, but with so many unknown variables in your situation, I think it best if you read through this information. Once you have a good understanding what your options are, you should speak with your mortgage company. If you don't get a good result, try contacting your local representative and ask to speak to their military liason. Our local one works wonders on behalf of soldiers. If you still need some ideas, please feel free to call me and I can brainstorm with you.
Best of luck, warrior!
Heritage Texas Country Properties
You have two great answers so far.
You have three options:
1. If you want to keep your home, then you might be able to re-negotiate your mortgage. This is called a "loan modification". Your challenge might be if you obtained the loan with "stated" income and assets, you will now have to apply with "full documentation". If you explain how it came to be that you can no longer afford the mortgage, the lender might work with you.
2. If it appears that you are not going to be able to bring your income up to the point where you can afford payments, then you need to see if you can qualify for a short sale. In this case, perhaps due to your deployment, you need to work quickly. Talk with a Realtor regarding your home's current market value. Your Realtor can then approach the lender and explain your hardship (the reason that you can no longer afford the payments) and persuade the lender that the best thing for them to do is to let you sell the home.
3. The worst option is foreclosure. A short sale will ding your credit, but a foreclosure is worse.
So the best thing to do is talk with a Realtor and start assessing you options NOW. Time is of the essence. Most of this can be done via phone and email, so do not wait.
As Jeremy stated, you do have some options but that depends on a number of factors. Are you current on your mortgage? Is your house upside down - do you owe more than its worth at this time or do you have equity in the property? Were you in an ARM and your rate adjusted? If so, you can definitely call your loan modification department to see if they will reset the rate to make the house affordable. There any different options to explore before you make any real decisions and many that can save the impact of a default of your loan on your credit report. If you are interested, please contact me and we can speak directly.
Good luck to you.
Gina Chirico, Sales Associate
Prudential New Jersey Properties
973-992-6363 ext 116