i need help

[dc2mlbsm]

My parents just told me that they can no longer afford the house because the payments went up. They have not paid the last 2 months and I was wondering if there is anything they can do to switch from a variable rate to a fixed rate? or lower the payments? thanks in advance

[Mex]

I've worked in the mortgage industry for the last 8 years or so. I couldn't possibly answer your question without seeing their credit report and income levels. Best thing for them to do is see a Mortgage Broker/Loan Officer.

Most lenders won't take on a new mortgage if the current one is in arrears, as is the case with your situation.

But, they should still see if a Mortgage Broker can help.

[macdaddy3598]

OP - The first place to check is with the bank that holds the mortgage note.

No bank wants a foreclosed home; especially in today's market. Your parents can work out a repayment plan and request that their rates and terms are reaccessed.

If that doesn't work, as the other poster mentioned; look for another, fixed rate loan. The government has many new plans in place to prevent defaulting and your parents may be eligible for a state-backed program as opposed to a private loan option.

Most likely, if they've missed 2 payments, their credit may not be worthy of another private loan... In addition, they may owe more than it's value then they may be in more trouble still.

The thing NOT to do is ignore the problem. Granted, it'll take 6-8 months of nonpayment until the sheriff knocks on the door and gives you 10 days to move out, but there's better ways to bail out.

[dc2mlbsm]

k thanks guys i will tell my parents about this