Are there any options we can take to avoid foreclosure and be able keep our home?


Question:
Currently, our mortgage loan rate has increased drastically (from 6.5% to 9.5%) since it is ARM. We were trying to refinance it but the market value of our home has decreased and it’s really hard to get a bank approve the refinancing.
Pay the bill on time
Working a second job to keep up the payments until the market improves or selling something to paydown the mortgage to less than the home is worth.
Call your lender and see if they will refinance with no cash out or help you with a temporary reduction. They don't want to foreclose on a house that is worth less than they are owed so maybe they could offer you 7.5% for a year while you figure it out.
You have a couple of options. You can go to your lender and ask them to extend the initial rate for a period of time. You will have to show that you can't afford the new payment.
Otherwise, you can operate a short sale. again negotiating with the bank, you can sell the home for a value that is less than what you owe. There are a couple of different types of short sales depending on your situation. Ask a realtor for help.
You are in a difficult situation, like so many others. I am in California where it is happening everywhere. If you can sell the home on your own you may be able to get out from under it. If you try to keep it, you will be paying too much for it. I work with a foreclosure specialist and he negotiates with the bank for a short sale and sells the home for today's value.
You have to look at all the facts. What else are you going to do, what are your options?
1. Sell the home ( you owe more than it will sell for )
2. Refinance ( owe more than it's currently worth )
3. Pay the increased payments to stay in the home ( is it worth it )
You can go to your lender and ask them to extend the initial rate for a period of time.

Foreclosure anwers here
http://www.foreclosureinfousa.net...
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