Your Adjustable mortgage rate has just adjusted. Your mortgage payments have increased dramatically and you are having a hard time making the payments.
Is there anything you can do?
The answer is yes.
The first step is going to be talk to a lender and do it sooner than later. If you feel like you are in a situation where you will not be able to make payments, talk to a lender to see if you can re-finance your loan into a fixed rate. This may help stabilize the payments give you the peace of mind that you can afford to stay in your home.
What if you talk with a lender and it is not possible for you to refinance?
It may be that you are in a situation where you can't refinance. Maybe the house is financed for more than it can be appraised for, or maybe your credit has taken a hit and you can't get approved for a new loan, or maybe you are in a situation where you feel like you have more house you can afford.
There are options. You can sell your home. This may not be what you are thinking, but this is one way to deal with your situation if you can't refinance. You will want to talk to a Realtor to see what your situation looks like. There are two avenues of sale at this point.
1. A Standard Sale
2. A Short Sale
A standard sale is where you are able to sell the home for more than than you owe. This is what most think of traditionally when selling the home.
A short sale is where you are selling the home for less than you owe. This can be a tough situation and you will want to involve a Realtor early on to help you navigate a short sale. See my next blog for the ins and outs of a short sale.
If you are feeling like your mortgage payments are getting away from you do remember that there are options to you. Just make sure to be honest with yourself and your situation and contact a professional earlier than later.
If you have any questions or would like further information, you can contact me at 510.213.1139 or at lcartolano@apr.com
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