Behind on My Mortgage and Can't Afford the Payments

I'm behind on my mortgage and can't afford the payments. My mortgage is with Chase bank. What can I do?

2 Answers

There are a couple of options available to homeowner's that find themselves behind on payments and unable to afford the payments they had before they fell behind:

  • Loan Modifications - Servicers may allow you to modify the terms of your mortgage.  They do this by lowering the interst rate or lengthening the time you have left to pay off the balance of your mortgage.  With a loan modification, the changes may be temporary, such as offering a fixed period ARM, or permamnent, such as offering a fixed rate for the remaining life of the loan.


  • Short Sales - The servicer may allow you to sell your home for less than what you owe and settle the account.  This option will have an adverse impact on your credit if it is reported to the credit bureaus.

The first step is to contact your servicer and discuss the options that they are willing to provide to you and how to go about getting an agreement in place.

Good afternoon and thanks for your question; hopefully I can give you some insight.  My first piece of advice is be as proactive as possible concerning communication with your lender.  Contact the number on your statements and speak to the loan modification department.  They will inquire as to what (if anything) has caused you to fall behind and offer some possible solutions; hopefully one of those solutions will be a loan modification.  Your lender will also request some financial documentation in order to give them a clearer picture of what your specific financial situation is and determine what would be an affordable payment for you.

Also, if you get no satisfaction from contacting your lender directly there are a number of third party loan modification companies out there along with a government sponsored agency that assists homeowners in obtaining a loan modification.  Take your time (not too much though) and do your homework; as with anything there are excellent providers of this service as well as those I would stay away from.  Be aware that most of these entities work on an up-front fee basis.

Lenders have become much more willing to work with homeowners on keeping them in their home than even 6 months ago; due to the sheer numbers of homeowners who find themselves in a less than wonderful situation.

If a loan modification is not warranted or you don't qualify; another option is a short sale.  The one question each homeowner in a similar situation needs to ask themselves is: Do I want to keep the property and what am I willing to do in order to make that happen?

I hope this has helped. Best of luck.