Ask your mortgage lender if you can restructure your mortgage loan. Mortgage companies know you need a roof over your head and they are usually the last payments you will let slide. They also already realize you are probably having other financial problems.
The mortgage company may allow you to restructure your loan if you have some equity in your home. They may even allow you add the past amount due into the new loan.
Another option is to ask your lender to help you get a one-time payment from the government’s FHA-insurance Fund to bring your mortgage loan up to date. If your loan is at least 4 months behind, but no more than 12, you may qualify and you must be able to begin making full mortgage payments also.
If your problem can not be settled in a reasonable amount of time, it may be better for you to sell your home and find one with more manageable payments. Sell the home, pay off both the mortgage loan balance, delinquent debt and avoid home foreclosure.
If you can’t sell your home, it could be possible to sign it over to the mortgage lender. This is a voluntary foreclosure and may damage your credit record. Your home will be gone, but you will not be liable if the home sells below the debt amount.
When all your options fail, declare bankruptcy. Home foreclosure proceedings are usually stopped until the bankruptcy is settled. This may save your home, but you will damage your credit for 7 years and won’t be able to control your own finances.
