Second Mortgage

Before taking any new loan, always ask yourself if the payments are to much for you.

If they are, then you may want to sell, and start over. If you have equity you will have some cash in hand to buy a cheaper place. If not you may want to short sell, and walk away with your cerdit saved.

If the reason your in forclosure is not because your payments are to much for you, then you have otions. 

If there is equity in the home, you can refinance and take out enough money to come current and have a saftey net. If there is no equity, you will have to find someone to loan you enough money to pay all the payments due and the penalties that have been added. You will have to be able to afford you house payments and the repayment of the loan.

Moreover, you need to ask yourself a few more questions like: Did you try a refinance? Did you talk to your loan company to see if they could help you by putting the back owed amount on the end of the loan?

There are also aid programs that assist with this but they may not all programs will be suitable in general. Did you try bankruptcy? There are bankruptcy’s where you do not lose your house, yet you will need to have a way to pay the debts. Talk to a free legal aid about that.

If you are not getting the response you think is necessary from the people you are speaking with at the mortgage company, request to speak to the Loss Mitigation manager. Tell him/her of your desire to keep your home.

See if they will allow you a forbearance agreement. If so this might be the best way to get by and keep your home.

A forbearance agreement will allow the mortgage company to add all the late mortgage payments and fees to collect the late payments into another mortgage. Now you will have two mortgages.

You will have to tell them when and how long it will take you to pay off the late mortgage payments so they can make a monthly payment for you. This payment will be in addition to your regular mortgage payment.

Now the trick to this it that if you were laid off, you must prove to the lender, based on federal guidelines that you are back at work and earning enough to cover the monthly mortgage payments as well as have enough left over for every day expenses like groceries, utilities, entertainment etc.