Depending on who you talk to the foreclosure issue is a myth or a full blown major catastrophe. Some people will tell you that the housing market is not depressed, there’s nothing to worry about and it’s all good. Talk to someone else and they will tell you the ranks of the homeless is about to swell. The truth is there is a foreclosure issue. But it only affect certain people.

If you’ve got a fixed rate mortgage, odds are you don’t have anything more to worry about. Your Payment is not going to skyrocket on you. Before you get too complacent you may want to have an attorney look over your mortgage and confirm that it really is a fixed rate mortgage and there are no surprises in the fine print.

However on the other side of the coin if you signed a mortgage with a “teaser” rate or you have an Adjustable Rate Mortgage(ARM), you could be facing problems. The problem is that interest rates on those type of mortgages are rising to reflect the Prime Rate. I’m not going to get into all the technical stuff. What I am going to say is this. There are Americans facing foreclosure on their homes and they don’t know what to do.

First and foremost consult with a real estate attorney to see what options you havebefore you fall behind in your payments. They may be able to come up with solutions that will forestall missed payments. Even if you have fallen behind, a real estate attorney may be able to help you find solutions such as forbearances to bring you current. In a worst case scenario, they may be able to help you get out of the mortgage without ruining your credit.

The thing is that you have options. but you need to know what those options are and how to take advantage of them, for that you need someone to advise you that knows the ins and outs of real estate law.

Categories: Money and Financial
Tags: adjustable rate mortgage, facing foreclosure, fixed rate mortgage, housing market, interest rates, mortgages, real estate law