For many of us, owning a home can be a dream come true — and being at risk of losing a home can be a nightmare. But if you find yourself struggling to make mortgage payments for any reason, the worst thing you can do is go back to sleep and ignore the problem.
Your financial problems probably didn’t develop overnight, and they won’t go away easily either. And if you lose your home, you could be out of a place to live and have ruined your good credit. So what can you do? Take action to work with your lender. The following resources might help:
If you can’t sell your home for enough money to pay off your mortgage, the Federal Housing Administration offers refinancing options that can help. Lenders in the FHASecure program voluntarily agree to forgive any mortgage debt that exceeds 90 percent of the current appraisal value on the home, so the homeowner can refinance into an FHA-guaranteed loan.
If you need help talking to your lender, a housing-counseling agencyapproved by the Department of Housing and Urban Development can walk you through the appropriate steps with your lender and help you find out what options you may have.
If you are afraid that you’ve waited too long to deal with your mortgage issues, the HOPE NOW Alliance Web site can help — it’s full of information for homeowners who are on the verge of foreclosure.
If you are worried about your finances in general, the Department of Commerce's Economic Recovery.gov provides great resources to help you avoid financial troubles.