What are our options with a mortgage we are struggling to pay.?

Asked by Kay s, Marlborough, MA Wed Aug 5, 2009

We need help and advice. Our mortgage is "upside down" we owe 315,000 and the house is worth 280,000. We tried to sell it in 2006 and couldn't. We are just making the mortgage payments but it's tough every month making ends meet and we have been late on several payments this year but our mortgage is current. Whats really frustrating is we met with a lawyer and apparently we make too much money to file chapter 7 bankruptcy and chapter 13 is our only option. Our biggest problem is our mortgage the monthly bills are ok but we feel so trapped. With chaper 13 if our house forecloses we will pay back a portion if not all of the difference. We feel like there's no way out and we are so stressed out. We called our mortgage company and because the mortgage is upside down there's nothing they can do to refinance it. Do we have any other options? I have read a little about short sales but it seems that we will be forced to pay back a loss on that also? Thanks, Kay

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Ken Lambert’s answer
Ken Lambert, , Exeter, NH
Mon May 17, 2010
Hello Kay- Are you still in your home, from last August? The modification world is a grat area and seems to change every 6 months or so- though this may be your best bet- if you like you home and if you have an income still.
Let me know if I can help. Thanks and good luck,
Ken L.
0 votes
Amy Mullen, Agent, Shrewsbury, MA
Sat May 15, 2010

First off...you're not alone in this situation. This is unfortunately very common these days. There are many options available for you but the right one depends on where you want to be in the future too!

Please either give me a call or drop me an email and we can set up a time to sit down and chat. I know it feels like your main concern is next month's mortgage payment or the grocery bill on Wednesday but it's important to get a look at the big picture before taking any advice or making any choices.

Have a great day and I hope to hear from you soon!

Amy Mullen, Realtor CPA MBA
0 votes
Dallas Texas, Agent, Dallas, TN
Fri Aug 7, 2009
Talk your lender determine what assistance they can provide. Many lenders are aware of current situation DON'T want a short sale or foreclosure trying work out direct with property owner.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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0 votes
Christopher…, Agent, Woburn, MA
Fri Aug 7, 2009
Prior to thinking about shortsales, have you spoken to your mortgage company to see if they are participating in the obama plan for stugling homeowners. Who is your mortgage company?
0 votes
Kelli Cassidy, , 01950
Thu Aug 6, 2009
Hi Kay,

I have done several short sales on both ends, They are a good alternative to foreclosure if you no longer want to stay in the property, if you do try a loan modification. The difference between foreclosure and short sales are on my website on the home page click on "Read my latest Newsletter" it will give you the differences between the two in an easy to read chart on page 2. Not always do you have to pay back the difference to the bank, it depends on how the agreement is set up. Please give me a call if you would like to know how to proceed forward.

Kelli Cassidy
Web Reference:  http://www.kellimovesre.com
0 votes
Jody Stemarie, , 01876
Wed Aug 5, 2009
SO many homewoners today are in this similar situation. Every situation differs slightly from one person to another so you should get some advice from a lawyer, Realtor etc. to understand the different options available to you. You should check out the site below to get your started.
0 votes
Gary Mast, Agent, Dublin, PA
Wed Aug 5, 2009
In no particular order, you can declare bankrupcy, stop paying your mortgage & allow property to go to forclosure, you can give the Lender a deed in lieu of forclosure, or do a short sale. Once you stop making mortgage payments you will get your Lender's attention. Then you might be able to work a mortage modification. You should be able to work a modification without starting down the road of default, but the said truth is many Lenders are swamped and until default starts they don't pay attention or are not receptivie to your requests for modification. You did not say, but I am assuming you wish to remain in the property, in which case a morftage modification is the best way to go. I hope this is some help to you.
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