Mortgage Debt Elimination

Mortgage Debt Elimination
Over half of all American house owners have troubles with their monthly mortgage payments and are constantly getting deeper into debt. So if you are currently dealing with your mortgage debt and trying to decrease it – you are not alone.

There are two kinds of loans: secured and unsecured. Secured ones are usually tied to assets, like your house; so if you stop making payments the lender can foreclose on your house. Unsecured debts on the other hand are not tied to any assets and include most credit card debt, medical care bills, signature loans and debts for other types of services.

If you are experiencing troubles with your monthly payments contact your lender immediately to avoid foreclosure, don’t wait for several months. Most lenders will cooperate with you if they believe that the situation is temporary; but it is not a good idea to give your lender incorrect information on your situation because it can lead you in even more trouble, though.

One of thing that can be done for your debt elimination is your monthly payments can be decreased for a certain period of time. When your debt is eliminated you will only have to pay a small addition to your original monthly payment. Some lenders can also increase your repayment time in order to reduce your monthly debt. Nevertheless, additional fees may be charged for this operation; so you need to ask your lender about all the details and calculate the total amount those fees will make in a long run.

If you still can’t work out a plan with your lender another choice for you is to contact a housing counseling agency. Some of them limit their counseling services to homeowners with FHA mortgages but some will offer you advice on your mortgage debt, at no cost. If nothing helps or you have any questions call the local office of the Department of Housing and Urban Development or the housing authority in your state, city, or county for help in finding a legitimate housing counseling agency near you.

© 2010, Jericho Mortgage — Mortgage Debt Elimination