Ask Bill your personal finance question

Information on mortgage refinance and payment assistance

I cannot afford my mortgage on my own, what can I do if my husband won't support me?

I been given the opportunity to get my home out of foreclosure with a loan modification. I have to make 2 monthly down payments of $4556.00. But the problem is that I will have to pay $2517.00 a month by my self. I make about 4,000 a month on over time and about $2200.00 regularly. I also have a car note that is $555.00. Should take the offer for a loan modification? Or should I find my family an apartment and let my home go into foreclosure. I know my credit will be ruined but I don't know what to do. Please help.

Read full question
Bill's Answer
(7 Votes) | Find Learn Save

thank you for your question about your mortgage and the options that you have, given the tough circumstances you face.

it is hard for me to advise that you accept the loan modification offer, when the monthly payment exceeds your normal income and would be hard to cover when you are earning overtime (which is not something that one can rely on receiving indefinitely). one possible solution is to rent a room in your home to someone and cover the mortgage payment without major stress.

foreclosure forbearance

you should speak to your lender about foreclosure forbearance. in a foreclosure forbearance, you are allowed to delay foreclosure while your mortgage loan is either re-written (loan modification) or you are allowed to defer a few payments and get back on track.

if your lender agrees, it will then, temporarily, cease legal actions. lenders may agree to combine your forbearance with reinstatement or a repayment plan, if you are able to  to bring your account current by a specified date. this plan may work for people who have just experienced a sudden living expense increase or income loss.

try to refinance

even when in forbearance, being that the default on your mortgage is already reported to the credit bureaus, most lenders might be unwilling to fund your loan. but - you should always consider applying for a refinance. the worst that can happen is that you get turned down.

if you want an introduction to pre-screened mortgage lenders, makes it easy to compare mortgage offers and different loan types. please visit the loan page and find a loan that meets your needs at: free mortgage refinance quote

depending on your income, credit report, value of your home and the amount of your equity, you can apply with a new lender to refinance your existing mortgage. although it might be difficult to secure new financing with a default on your existing mortgage, if you have enough equity in your home, this option might be attractive to a new lender. although this option may likely create a loan with higher interest rates, a sizable upfront fee and a longer time for pay-off, it may be the best option for you. with your home refinanced, you will become immediately current, the foreclosure will cease and you will be able to enjoy your home. certainly your existing lender would be happy to have their loan paid off through a refinance.

you should contact several potential lenders to discuss the loan terms they can offer you on a refinance loan. after speaking with several lenders, you should be able to determine whether or not a refinance loan is a financially viable option for you. in case refinancing does not work out you can try these other alternatives:

  • a repayment plan - if your account is past due, but you can now make payments, the lender might agree to let you catch up by adding a portion of the past due amount to a certain number of monthly payments until your account is current.
  • selling your home - if catching up is not a possibility, the lender might agree to put foreclosure on hold to give you some time to attempt to sell your home. if your home is worth more than what you owe, then this option is worth considering. it will minimize the damage to your credit and leave you with some sort of a nest egg to use for another home purchase down the road, paying the costs to move and to rent a place (covering the first month, last month, and deposit you may need to pay), or use to otherwise stabilize your finances. if you owe more on your home than it is worth, you should speak to your lender about a short sale.
  • deed in lieu of foreclosure - a deed-in-lieu is when the lender allows you to give-back your property--and forgives the debt. it does have a negative impact on your credit record, but not as much as a foreclosure. the lender might require that you attempt to sell the house for a specific time period before agreeing to this option, and it might not be possible if there are other liens against the home. offers a wealth of information where you can learn more about all your financial needs. go to the foreclosure information page to read more.

i hope the information provided helps you find. learn. save!



(7 Votes)
Recent Oldest
1500 characters remaining
  • N
    Feb, 2008
    A forbearance agreement is usually made for people who are having trouble paying their mortgages. You will need to check your credit to see if it has been adversely affected. The best way to find out is to call multiple lenders to see if you do indeed qualify. You apply on, depending on the information you provide, you will be contacted by up to 4 lenders.
  • K
    Jan, 2008
    Is it possible to get pre-qualified for a new mortgage loan while you are in forbearance with your present mortgage company?