FAQ - I am having difficulties making my mortgage payment(s). Should I contact my lender(s)?

Q: I am having difficulties making my mortgage payment(s). Should I contact my lender(s)?

A: Notifying your lender of your hardship is the only way to find out if you have any workout options available to you. The most common workout options are loan modification and short sale but there are several others options that may be available to you. If you have enough equity (or more commonly not too much loss of equity) in your home and depending upon who bought your loan on the secondary market you may actually have the option of refinancing. This may or may not help you depending upon the cause of your difficulties making payments.

You do not have to be behind on payments before you make contact with your lender. Waiting until you are late on your payments may reduce the number of programs that you can qualify for. When you call into your lender they will direct you to a department called home retention or something similar. They will verify your identity and then collect information on your financial situation so that they can get a full picture of the problem. Once they see how your income compares to you expenses they will tell you whether or not you qualify for any of their workout options.

To be eligible for a loan modification your income cannot have decreased too dramatically. Conversely, to qualify for a short sale you must demonstrate some sort of signification financial hardship. Common causes would be job loss, hospitalization, divorce, or even the need to relocate. When neither of these options work for you some lenders offer a deed in lieu of foreclosure.

If your financial difficulties lead you to bankruptcy that's a whole new can of worms! Please contact an attorney for more information on bankruptcy proceedings and the impact on your home.

If you have questions about listing your home as a short sale in the greater Phoenix area
please visit www.FreeShortSaleAZ.info or contact 602-818-0473 to for more information.