Be Smart Before Taking Flight From Your Mortgage

I just want out... what are my options... 

Short Sale
In this process the borrower asks the lender for permission to sell the house for less than what is owed on the mortgage. For example, the market value of a property is $250,000, but $300,000 is owed and the lender is asked to take a $50,000 hit. short Sales hurt credit scores, but not as much as a foreclosure.
Foreclosure
Walking away from your property letting a lender foreclose has the greatest effect on your credit, remaining on your report as a negative item for 7 years.

More than three years after Utah's real estate bubble popped, tens of thousands of homeowners have some tough decisions to make.  Am estimated 8 percent of Utah households with a mortgage are behind on their payments. About one in five homeowners in Salt Lake City are "under water" meaning they owe more than their homes are worth.  another 6% are close to that point according to housing data from Corelogic.

Should they try to get their lender to modify their mortgage? Should they hold on and wait for better times? Is trying to get a lender to agree to short sale a better option? Or should they just give up and walk away?

Each situation is different of course, but the solutions are often universally complicated and can be painful. "A lot of people believe, or hope there's a government program that can fix everything for them," said Ryan Carver, director of housing counseling of AAA Fair Credit Foundation  "But there just isn't one."

I am in mortgage trouble, but want to keep my home - so what now?  Here is what to do if you are having trouble making your  mortgage payment and can't sell your house because yu owe more than it's worth:

• Start with your lender or HUD approved counselor- call 211 to find a counselor in yuor area.
• Your lender's offer is likely to dissapoint- the lender will do what is best for them.
• You must prove hardship in order to get help
• Be persistent, and keep track of your conversations.
• Help is not guaranteed- Your lender doesn't ahve to help you.
• You may want to change your spending habits - the bank will see what you spend your money on.
• think twice before you stop making your mortgage payment - you may think that is the only way toget help, this really may not be the best decsion
• Denied modification? Try, try again.

For more of this article please go to: http://www.sltrib.com/sltrib/money/51583950-79/mortgage-loan-lender-payments.html.csp

Salt Lake Tribune  - Lesley Mitchell