If you are currently in foreclosure, then you must take action now to resolve the situation. Depending on your particular situation, you may be able to receive mortgage default assistance, either from your lender or from a professional mortgage default assistance company. However, you should first ask yourself the question of what it is that you are trying to accomplish. Can you afford the mortgage payment? Is it in your best interest to keep the home? If so, then start from there. Or would you be better off trying to sell the home?



Let's take a look at the first question. What are you trying to accomplish? If keeping the home is your main goal, then let's take a look at your options. After all, before bothering to contact a mortgage default assistance firm, you should first learn your options. When it comes to keeping the home, you'll need to do an analysis of your budget to prove that you can indeed afford the mortgage payment. This amount needs to include your property taxes and insurance. Are those costs escrowed, meaning part of your mortgage payment, or do you pay them separately? Then, go down through the remainder of your monthly bills, including but not limited to your car payments, car insurance, your grocery bills, etc. Then, determine what your take home pay is, that is the amount of money you bring home after taxes and other deductions are taken from your paychecks. Now, simply subtract your bills from your income. Is there a surplus, or are you in a negative zone? If there is a surplus, then there is hope. If not, then you should consider alternatives.

Let's say you do have a surplus. Now figure out what caused you to get behind in the first place. Was it due to a temporary hardship that has now been resolved? Perhaps a loss of employment or maybe major repairs of some kind. Either way, the million dollar questions is whether that hardship has been resolved. In other words, if it weren't for all the back payments that are now due, could you now afford your mortgage payment? Keep in mind that the hardship that your lender will consider the most serious is a medical hardship or personal trauma such as a divorce. But don't think for a second that you can just make that up. Everything you say will need to be verified.

At this point, you should contact your lender and see if they will offer you mortgage default assistance. They may ask you for current pay stubs or other proof of income, as well as an explanation of your hardship. If this is sounding too easy?well you're right. Unfortunately, this simple process turns into a complicated one due to many factors. For one thing, you may be dealing with the collection department whom can sometimes be difficult. If you find yourself in an impossible situation, or one that is taking too long, you may want to consider pursuing a mortgage default assistance firm.

If you can now afford your home, you may qualify for programs such as a forbearance which allows you to make up your past due payments within a specified period of time. A similar program is a special forbearance. Another program is a loan modification which may allow you to put the past due payments onto the end of the loan. Some modifications allow you to stretch your loan out further and possibly reduce your interest rates. This sometimes includes altering your loan so that an adjustable loan becomes a fixed loan.

If you cannot afford your mortgage, you may want to consider a short sale. This is where either you or a mortgage default assistance company would negotiate with your lender to get a reduced price for the home. In a slow real estate market, this may make your attempts at selling your home much easier. Of course if you sell your home through a short sale, you should consult with a tax advisor to find out about any tax implications you may incur. Another option is a deed in lieu of foreclosure. This is where you deed your home over to your lender. Although this forgives your debt to your lender, it has a negative effect on your credit report. Clearly, you have options but they take time and a good understanding.