Interest rate on mortgage is going up, house is not selling what to do?

the interest rate on our house is going up and we can't get it sold, we will not be able to afford to make the payments for much longer and they tell us the interest will rise every 6 months...Does anyone have any advise on how we should Handel this, we are tying to get out of a foreclosure right now, but do you think we should just let it forcose or should we file bankrupcy? What really happens with a bankrupcy anyways-do the people you owe money just get screwed out of it or does the govt. some how help out.Interest rate on mortgage is going up, house is not selling what to do?
You are in a tough situation and you may be running out of options other than selling your home for a loss or rent it out.





Normally a refinance is recommended for your situation, but since you are now living in Germany and are in the process of selling your home, refinancing makes no sense and will cost you more in the long run. And it sounds like you've already worked out a deal with your lender, so you can't do much more there.





And the other folks are correct that you should avoid a bankruptcy and foreclosure at all costs. These will affect your credit for years and you won't be able to get another home or low interest loan for many years to come.





Can you have anyone help you rent out the home while you have it on the market? Maybe someone can live there and help you with the bills until it sells? If this isn't possible, you are best off selling at a loss and moving on.





There are a few options you can take and your lender may work with you on these. One such such option is ';selling short'; in which your lender will agree to buy back the property at a loss and you walk away with no debt. For example, if you owe 100,000 on your home but it's only selling for 80,000, you sell short 20,000 and the bank takes this as a loss.





This keeps your credit good and allows you and the bank to avoid going into foreclosure. The downside is that you are taxed on the 20,000 as income (which might not be too bad considering military are taxed less then the general population).





So I recommend renting until you sell or selling short. Besides for that, you don't have too many options left.





I hope your mortgage broker fully explained how an ARM works when it was sold to you. ARMs can be a great financial tool for the right people. Sometimes, less than scrupulous companies will push them on people who can't afford the rising rates and don't understand the difference that will make in payments until it is too late.





I wish I could give you more news, but I'm afraid your options are limited. I hope this works out for you as well as possible. Finally, check with the Army financial people. They may have loans that will help you cover expenses or offer assistance.Interest rate on mortgage is going up, house is not selling what to do?
Here is what you do....never ever get an ARM.
Your lender really doesn't want to foreclose on the house because that just adds to their inventory. Since your in the military, go talk to the Chaplin on base. Believe it or not they have more knowledge or can help you when you need it the most. If they don't know, they can direct you to the appropriate person.





Also there are many options out there. Just be careful on how much information you may give out. With you being out of the country, there are so many scam artists that can and will take advantage of your situation.





I know of some programs and am not selling anything here or otherwise. It is just some inofrmation that may help you understand the process better. You can email me if you like.
What you should do is find a mortgage broker and see if you can get out of that by refinancing. As long as the LTV isn't too high you might be able to pull it off. When a mortgage deal makes sense, it can get done. Bankruptcy will be on your credit for the next ten years and a forclosure is not much better.
The first thing to do is to talk to your lenders. Let them know what your situation is and see if they can help. They may be willing to help you out by extending the curent rates so long as you are actively trying to sell the home. Let them know what your options are you understand them and ask for their advice.





In todays market, lenders may be willing to work with you rather than foreclosing on a house that they will then have to try to sell.





The real estate has really slowed down in most areas. Even foreclosed homes are having to sit on the market for a while which is costing these lenders money on a daily basis.





Talk to them....
Refinance it may be an option for you. In some states you can borrow up to 70% of the home value.





Don't stress yourself out. As the bank if you can do a short sale...
The gov't is not going to come to your aid unless you are a war veteran, and I'm not sure even then.


Call your financial institution and explain your situation. They may agree to stop the increase in interest on your loan if you tell them that your only other alternative is to let it fall into foreclosure.


I highly suggest that you contact a financial lawyer.
Foreclosure rates are on the rise right now throughout the entire country. You need to change your mortgage program to payments that your family can afford. I am a mortgage broker. Email me and I will be glad to help your family stay in your home and pay off your debt.


--Vlad
If you can avoid foreclosure in any way, do so. It will trash your credit, your possibility to get rental housing and effect you in ways you probably cannot anticipate.





Talk to you lender, many are being very flexible to reduce the chance of foreclosure.





Are you down to your bottom dollar price to get out of the home without any out of pocket expense? If not, you may want to reduce the price. Is your home being shown and no offers?
They call it an ARM because in the end it will cost you an arm and a leg.





Adjustable Rate Morgages made a lot of sense when rates are going down. Now that they are going up and likely to be going up for many years to come they make absolutely no sense at all.





I have no idea what you should do.





Not enough information.





1. What state do you live in?


2. Have you hired an agent to sell the home?


3. How much below market is the home listed for?


4. What's the average days on market for your area?





Terry S.
Call your lender and try to work something out with them. You do NOT want either a foreclosure or a bankruptcy on your credit record.





Maybe lower the price on your house if you can so that it will sell more quickly. It is a buyer's market out there right now, big time.





Meanwhile, cut back on every household expense you can. If you can car pool or take public transportation, do it. Cancel cable tv and other extra services you can live without. Have a garage sale. Buy groceries at discount grocers and eat meals at home, bring lunch to work, etc.