"It seemed that every home in our block was up for foreclosure and we didn't think we had any way out. We knew that we owed more on the house than it was worth and were very tempted to just let the foreclosure process play out. Then my husband found out about foreclosure help from 1st Foreclosure Prevention. We contacted them and found that we could get out of the house without having to endure the foreclosure process. This company presented us with options that we didn't even know existed. Not only that, but we're glad we didn't go through the foreclosure process because my husband lost his job, got a new one and the employer did a credit check! This company really helped us out."
"We called 1st Foreclosure Prevention right away because a friend of ours who went through foreclosure in Florida told us about them. We knew that the sooner we acted to stop foreclosure, the better our chances. They gave us a lot of help and we were able to prevent foreclosure. Their loss mitigation specialists were great, too. They knew the laws in our state better than we did and they also had a lot of options for us that we never would have considered. Thanks to them, we are much better off. We're glad our friend recommended them and now we will do the same for others."
"We were struggling every month to try to pay our mortgage and kept falling further and further behind on everything else. The place was a mess because we didn't have the money to fix it up, but we didn't think we could sell it because of the state of disrepair. My wife and I were like hamsters on a wheel, just trying to get through each day to make payments on a house we grew to dislike. But we knew that foreclosure would destroy our credit, so we held on. Then we found out about 1st Foreclosure Prevention. They were able to give us foreclosure help and even helped us with the sale of our home. We got to walk away from that mess and have started a new life, without a foreclosure on our credit report."
"I was going through a divorce and was about to lose the house. I didn't want to keep the house but I didn't want to go through the foreclosure process, either. But I had no idea that there were other options open to me in my state until I contacted 1st Foreclosure Prevention. I talked everything over with a very nice loss mitigation specialist and they gave me a personal and free foreclosure consultation. They were able to actually stop the foreclosure process and I was able to stay in my home until it was sold. After the divorce, I was able to buy a new home for myself and my children."
"I wanted out of my mortgage in the worst way - it was the worst investment that I could make. The roof leaked and there were tons of other issues. But I didn't want to go through the foreclosure process because I knew it would screw up my credit. So when I found out about 1st Foreclosure Prevention, I figured I would give it a try. I was struggling to make payments on a piece of property that I didn't want. I got a free foreclosure consultation from them and they told me different things that I could do to get out of it. They gave me great foreclosure help and even helped me get rid of the property. Now I have a great place and no foreclosure on my record. And working with them was easy, too. Thanks, guys!"
"We didn't want to go through the foreclosure process. We were so embarrassed that we were facing a foreclosure and knew that all our neighbors would find out. A couple down the street had a foreclosure and they posted a sign on the property. It was so embarrassing. But we knew that it was coming. My husband lost his job and we were really struggling to make ends meet. We didn't want to lose our home, but felt we had no choice. We were really ashamed of what happened to us. Then we talked to 1st Foreclosure Prevention and they made us feel so much better. They didn't make us feel ashamed and actually gave us the foreclosure help we needed. Thanks to them, we didn't have to go through the foreclosure process that would have pained the entire family."
Home / Foreclosure Help & Solutions For Payment Option Mortgages
Foreclosure Help & Solutions For Payment Option Mortgages
Are you upside down in your mortgage? Being upside down in your mortgage means that you owe more on the property than the property is worth. This usually happens when you take out a second mortgage or have refinanced your mortgage. Many homeowners refinanced their mortgages to draw on their equity to over inflated housing prices. When the housing prices fell, many people found themselves in such a predicament. Much of this is due to the fact that during the time the housing prices were high, many lenders offered payment option adjustable rate mortgages as a way to afford larger mortgages.
The current foreclosure crisis in the United States has many people considering ways to stop foreclosure, especially those who are in a payment option mortgage. To find foreclosure solutions for payment option mortgages, you need to understand how these type of mortgages worked and how they enticed people into getting such a mortgage and getting to the point where they became upside down with regards to their equity. Here are some facts about payment options mortgages that lenders did not discuss when they offered these mortgages to those in 2005, when home prices were at their peak:
- Loans that were based on a 30 year term that required full payment of a mortgage that was figured against an over inflated home price;
- Loans that were based on a 15 year term that required full payment of a mortgage that was figured against an over inflated home price;
- Interest only payments for those who wanted lower monthly payments for a term with the principal being due at the end of the term of the mortgage;
- Teaser low interest rates that were adjusted much higher when interest rates rose;
- Teaser rates that rose every year, regardless of interest rates;
- Refinances based on over inflated housing prices.
Lenders were so eager to make payment option loans to borrowers that they did not fully explain the implication. Many lenders were allowing refinances for over 100 percent of the equity that was in the property.
If you find that you are upside down in your mortgage, owe more than your home is worth and are facing foreclosure because of this type of lending practice, you have many options to stop foreclosure from happening. Even if you are already in the foreclosure process, you can get a free foreclosure evaluation to tell you what these options are.
Foreclosure Solutions For Payment Option Mortgages
If you are due to be recast because you have exceeded the negative amortization cap of your home and are facing even higher mortgage payments than you initially paid when you received your loan, you may need foreclosure help. Those with some of the payment option mortgages may find that they are now getting notices that their mortgage rate is going up to an amount that they cannot afford. This is often unexpected and disconcerting for any homeowner and for many, is leading to foreclosure. If you have a payment option mortgage and are worried about recasting and cannot afford new payments that are being offered to you from the lender, you have options to save your home and stop foreclosure. You can avoid foreclosure by getting a free foreclosure evaluation of your situation from qualified loss mitigation specialists who can explain these options to you. Some of the options that you can take to stop foreclosure are as follows:
Refinance With Another Lender
You should always seek to refinance with a new lender instead of with your original lender because they tend to offer the best rates to new customers instead of existing customers. Look for a low, fixed rate mortgage that you can afford to stop foreclosure. If you have a 15 year ARM on which the mortgage payments are rising, you can opt for a 30 year fixed and cut your payments by quite a bit.
Loan Modification
If you are upside down in your mortgage, you may not be able to refinance your property because you owe more than the property is worth. However, you can seek a loan modification from your lender based upon financial hardship. Loss mitigation specialists can help negotiate a loan modification for you that you can afford and can stop foreclosure. This often involves extending the term of the mortgage.
Pre-Foreclosure Sale Or Short Sale
This is an option to stop foreclosure even if you are upside down in your mortgage. You can sell your home prior to the foreclosure and avoid having to go through the foreclosure process. Many loss mitigation firms specialize in organizing a short sale and can help you through this process that can enable you in many cases to walk away from the mortgage without incurring more debt, without bankruptcy or foreclosure on your record and start life fresh. If you are considering the short sale, contact your loss mitigation specialist for a free foreclosure consultation to see if you qualify.
Ask For A Forbearance
Forbearance puts a halt on the mortgage payments and can temporarily stop foreclosure, but it is not a permanent solution to the problem. It can, however, stop the foreclosure process to allow you to regroup. You can find out how to ask for forbearance when you contact loss mitigation specialists for a free foreclosure evaluation. In some cases, the loss mitigation firms may help you with this request. Again, this is only a temporary solution to stop foreclosure.
Deed-In-Lieu Of Foreclosure
This is when you offer to deed the property back to the lender in exchange for them not pursuing a foreclosure against you or, in some states, a deficiency judgment. You can offer the lender the Deed-in-Lieu of foreclosure so that the debt will show up on your credit history as paid. Not all lenders will accept this and many people use loss mitigation companies to help them negotiate this type of arrangement.
File Bankruptcy
If you have over 20 percent equity in your property, this is not a good idea. If you have under 20 percent equity and have amassed a lot of unsecured debt, this may work. If you want to consolidate your debt and stop foreclosure, you can opt for filing a Chapter 13 bankruptcy. However, the impact that this has on your credit is just as bad as the impact from a foreclosure. In many cases, those who file bankruptcy often end up in foreclosure anyway. So think long and hard before you consider bankruptcy as a way to stop foreclosure.
The best way to stop foreclosure is to act the minute that you begin to struggle making the payments on your property. Although it may be easier to avoid the situation and not have to deal with this type of stress, the more action you take and the earlier, the more options you have to stop foreclosure.
One way to stop foreclosure if you have a payment option mortgage is to contact a loss mitigation specialist (866-477-7750) to receive the foreclosure help that you need with a free foreclosure consultation and explain the options available to you to stop foreclosure.
