Question:

What to do if I have mortgage payment problems?

Answer:

If you have mortgage payment problems, consider refinancing early enough. Refinancing to lower your mortgage payment is another shot. However, if you miss several payments, your credit will drop and you may be getting higher rates and might not be able to reduce payments.

The same goes for debt consolidation. If your non-mortgage debt is hurting you, consolidate into your mortgage payment so that you get decent affordable rates. And do it before your credit gets hurt.

If you have enough equity, use it to get cash and pay off what you owe on the first mortgage. While this is no help and doesn't solve anything, a HELOC or a second mortgage will give you time to get another job to pay your mortgages.

Should I sell the house if I have mortgage payment problems?

Yes. If you can't find a way to pay off your two now mortgages, consider selling the house while paying the first mortgage current with the proceeds from the HELOC.

Even though telling your lender might help, they may only put you on forbearance but there isn't much they can do. It depends on you to convince the lender your situation will improve within a year or less.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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