If you are behind on mortgage payments you have a few options available they are:
Option one, workout plan: Workout plan is where the bank agrees to set up a payment plan to pay back what is owed to the bank. In most cases, the bank will want some money down and the remainder over the next few months on top of your normal payments.
Example: if you are 3 months behind on a 1,000 a month mortgage the bank will probably want 1,000 up front and the remaining 2,000 split up over the next 3 months on top of your normal 1,000 payment.
Option two, pay back what is owed: For most people if they had the money to pay the bank back they would not be behind on payments in the first place.
Option three, Deed in Lue: This is where you sign over the deed to the bank and this keeps the bank from having to foreclosure to be able to take position of the house. This option is almost as bad as a foreclosure on your credit.
Option four, Short Sale: Short Sale is where the bank agrees to expect less than what is owed on the loan. We are licensed Realtors that specialize is negotiating with the bank to accepting a short sale without the homeowner having to pay anything including the REALTOR fees.
Option five, foreclosure: Let the home go into foreclosure is the worst option for the homeowner’s credit. It is normal effects your credit for around 7 to 10 years.