What Are My Options?

Depending on your circumstances, there are several different options that you may have, but going through with foreclosure is the worst option. Ideally, you would like to get a workout or a loan modification done. If those don’t work, you can try to sell outright or do a Short Sale, a Deed in Lieu of foreclosure or Bankruptcy.

A workout is when they take the amount of money that you are behind and add it to your monthly payment until it is re-paid. This usually does not work because if you were having trouble paying a $700 per month payment, then it is even hard to pay $1100 per month to get you caught up on what you were behind.

A Loan Modification is the best and popular way to go right now. It could get you into a lower rate, that will lower your payments, and the amount that you are behind gets put onto the back of the loan along with a few hefty fees that your bank will probably charge. The government is even giving incentives to banks to do loan modifications right now.