Mortgage Fearbuster 4

Posted by  on Feb 08, 2010

Q: I'm underemployed and need to reduce my mortgage rate and payments. I'm not sure I can qualify for a refinance. Current mortgage rates can help me afford my monthly payments. What other options do I have?

A: An FHA refinance may help as their qualifying requirements are more flexible than those of conventional mortgage lenders. Other options include the government's Making Home Affordable program which assists homeowners who have experienced property devaluation and/or loss of income. Contact your mortgage lender or a HUD approved counseling counselor for determining Making Home Affordable eligibility.

Q: My house is now worth a lot less than I owe on my mortgage. My husband is unemployed, and I'm scraping by on two part time jobs. I'm one emergency away from defaulting on my mortgage. Should I sell my home or try to keep it?

A: You'll have to decide whether keeping your home or selling it bests serves your needs, but mortgage lenders offer programs that can assist with either scenario. You may qualify for a refinance or modification of your mortgage loan terms through the Making Home Affordable program. If you decide to sell, you may qualify for approval of a short sale (also called a pre-foreclosure sale) These programs require demonstrating a hardship beyond your control, and in the case of a modification or refinance, proof that you can afford refinanced or modified payments,


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