October 2007
Struggling with Rising Mortgage Payments?
During the height of the real estate boom, low interest adjustable rate mortgages were an enticing option. But the low initial rates of ARMs that were written a few years ago are beginning to reset, often outside of the affordability of borrowers. This has led to an increase in foreclosures across the country - up 55% from last year in the first half of 2007.*
Avoid Foreclosure
If you have an adjustable-rate mortgage, you might have seen your mortgage payment begin to adjust upward recently. Perhaps you cut some luxuries from your budget at first, and made the higher payment without a problem. But then the car broke down and your hours were cut at work, and little by little, you're getting in over your head.
If unexpected expenses, job loss or rising payments are causing you to fall behind, it's best to head things off before they get worse. Contact the lender that handles your mortgage as soon as you realize you might miss a payment. Mortgage issuers are often willing to work with you to come up with a payment plan, or allow you to temporarily reduce or suspend your payments. Don't ignore the letters or calls from your lender. Once the foreclosure process begins, it can be difficult to stop.
We Can Help
If you're saddled with a difficult mortgage and rising payments, Great Basin Federal Credit Union may be able to help. Call us at 775-789-3117 to find out more about refinancing to a fixed-rate mortgage. We also have financial counseling resources that can help you get back on track.
* Source: RealtyTrac.
