Under the new law that George Bush signed in November or December 2007 you can get out from under your home mortgage.
The President signed a law called the Mortgage Debt … Forgiveness Relief Act, forgiving the owners of the fiscal burden associated with mortgage debt.
Prior to this action, forgiven mortgage debt due to foreclosure, short sale or deed in lieu of foreclosure is considered taxable income. The new law, however, temporarily waives these taxes for debts (up to 35%) from early 2007 until late 2009. The bill also extends the tax deduction for mortgage insurance premiums through 2014.
Your choices are: short sale, the deity of foreclosure. The best route is a short sale. It will not affect your credit as bad as a foreclosure. You have to talk to your mortgage company, see what options you have. You will know the step by step process.
You also need to obtain a real estate agent and get on the market ASAP! You can not do a short sale w / out it.
How to Get Out of Mortgage Debt
•Assess the situation. Many factors contribute to being in mortgage debt. A decline in market value of housing can result in a situation where you owe more on your house than it’s worth. Pulling equity of the house to use for other purposes is another way for mortgage debt may have increased and possibly put in a financial bind. In order to eliminate the mortgage debt you must first identify and assess the situation. Having identified the factors that cause mortgage being in debt, you can begin to establish a course of action.
•Establish a budget. Money management plays an important role in getting out of mortgage debt. Establish a budget for anticipated expenses weekly, monthly and yearly. This gives you a perspective on the amount of money left after paying your expenses to make additional payments to reduce your mortgage debt.
•Reduce unnecessary spending. It is also necessary to find areas where expenses can be cut or reduced. This may require classifying expenses as necessary and unnecessary expenses. Once you identify some of your unnecessary expenses, you can reallocate these funds to reduce your mortgage balance.
•Refinancing your loan. You can save money by refinancing your mortgage. By refinancing you may be able to reduce your interest rate and reduce monthly mortgage payments. Talk to your lender and a couple of other mortgage lenders to compare mortgage programs and determine if you are able to refinance your mortgage.
•Get help. If you are able to reduce your mortgage debt on your own, you can also rely on professional financial advisers for advice. A financial advisor can help you organize your assets and liabilities, such as a mortgage so that the information are personally and financially beneficial for you.
•Sell the house. If you still can not afford to pay your monthly mortgage payments or reduce your mortgage debt at a manageable level, you can also try to sell the house. The sale of the house may help you earn enough money to pay the mortgage debt. You can then shrink to a smaller home or less expensive one.