As discussed in the previous post, if you find yourself unable to make your current mortgage payments your options are foreclosure, deed in lieu of foreclosure, short sale or loan modification. The only option listed above that will allow you to stay in your home is the loan modification. Assuming that is your goal, you will need to be able to document your ability to repay the loan if some modifications to the terms are made. Some options that may be available are a temporary or possibly permanent interest rate reduction, or giving you an interest only payment option, modify your repayment terms from 30 years to 40 years or even 50 years, a principal balance reduction, a forbearance agreement or a combination of any of the above.
The Bank will take your entire budget into consideration including utilities, food, gas, credit card payments & cell phone bills. They don’t want your mortgage payment to consume your entire monthly income. You will need to complete an income vs expenses worksheet provided by your bank. Next post we will talk about principal balance reductions...
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment