Â
We’re starting to get a lot of posts on the Your Money message board from folks who are in mortgage hell. Often their payments have reset to higher, unmanageable levels, but home prices in their area have fallen so they’re no longer able to refinance their way out of trouble. Many were suckered into so-called “option” mortgages that allowed them to make interest-only or payments that didn’t even cover their interest, which means their mortgages balances have grown over time, putting them further underwater.
A few thoughts: if you’re facing a mortgage reset, your credit is decent AND you still have equity in your house, the time to refinance is probably now. If prices fall in your area, your equity could disappear and then you could be in the same boat as the folks in mortgage hell.
If you’re already there (in hell, I mean), consider contacting a HUD-approved housing counselor to discuss your options. Don’t delay. The longer you wait, the fewer–and worse–your options.
