Both the prior writers are correct. Start a dialogue with the lender. They will interview you and give you options ranging from some type of workout such as lower interest rate, capitalization (add delinquency to backend), or extend the life of the loan. They may advise you to list the home and sell either at market or "short." That is usually better than foreclosure on your credit. The banks will do a lot in order not to foreclose. Even if you are listed on the market they will move forward with foreclosure but typically will delay the courthouse auction or bank repossession as much as possible. Jon Tucker with RE/MAX 100.
Why There's No Mortgage Help in Stimulus Package
right now there are associations like this one that offer some assistance:
Help My House Payment
this association is offering housing payment assistance
and even has deals on monthly services to help you reduce
bills and save money. associations like this are starting to
pop up as more people need help in the worsening economy.
I'd suggest them to anyone who is looking for some quick help.
Maryland is one of only a few States that recently passed laws giving homeowners 12-months to work out payments on their homes directly with the lenders before the lender can foreclose on the home. However, most lenders are not accepting partial payments on back mortgage payments as this would reset the 12-month rule for the lender to be able to move forward with foreclosure. I would suggest you call the Hagerstown Home Store and speak directly to a counselor or the Washington County Housing Authority. Both places may be able to inform you about certain State Programs available or help homeowners negotiate with your mortgage lender. There is typically no fee to speak to either organization. The Hagerstown Home Store is next to City Hall in Downtown Hagerstown and you may want to ask for Barb Spielman. She would most likely be able to help you or at least get you to the correct person. Do you know what your current home is worth at this time? Do you think you owe more then what the homes current market value is?
2. Call an attorney that specialized in real estate because you can file bankruptcy and stall the foreclosure sale - but that costs you money too!
3. Good Luck, if I can help feel free to contact me.