Payment Deferral

MortgageMaster:

I am in trouble. I have 2 mortgages on my home. It was last appraised inJan 2007 for $950k. Both mortgages total $840k and I am now out of moneyand work. What should I do? I will begin another job in 90 days and I canmake my payments then. Do I contact my mortgage companies and ask toreduce payments for 90 days? Do I file bankruptcy? I don't want to lose myhome but food on the table is more important.
Thank you, Mike

Dear Mike,

I am sorry to hear about your situation. I doubt you have any equity to sell. Thus, your options are to 1) Short-sell, 2) Walk, or 3) Call the lender. I am absolutely sure that a call to the lender is easier than the former options. Even if it is aggravating, EVERYONE should use this option first. Loss Mitigation Departments are there to try and keep you in the home! More often than not, they will explore opportunities to keep you in the house. Given that you are starting another job in 90 days and assuming that you can cover the payment at that time, I am very sure that the lender can help you. They may do a loan modification,: defer the delinquent payments for later, spread-out the late payments over a given number of months, etc. They have many tools at their disposal...particularly given the current enviroment. PLEASE CALL YOUR LENDER ASAP!

MortgageMaster