Can't pay higher home loan payment but willing to sell?

My interest only loan rate is jacking up a ton in a few weeks and I'm working on refinancing right now. My credit rating is 618 and the refinancer is still looking at options but I have a feeling it's not going as smoothly as possible. I want to prep myself for the worst. I'd like to talk to my bank and ask them to work with me next month and I'll speak to my real estate agent next week and start putting my place up for sale. If there are any bankers out there, what are my options with the bank? What do I say to them? How do I go about this? Can I get a reprieve until I sell my place (I'm going back to renting for a while)?

Can't pay higher home loan payment but willing to sell?

Many feel your pain. Here, locally, many of our foreclosures are a result from adjustable rate mortgages and mortgage brokers initiating escrows on unimproved property taxes, then a year later, when mortgage companies have to adjust taxes calculated against improved property tax assessments, the adjustment raises their monthly mortgage out of budget, hence, foreclosure results. The worst part is that it could have been avoided had the unaware buyer not fallen prey to predator lending.

While I don't know the particulars of your situation, it doesn't hurt to ask your mortgage company if they'll accept a Short Sale. Basically, it's an upside down sale collecting less than what's due, but it'll save your credit and save you from filing bankruptcy. Only your mortgage company can say whether or not you can do a short sale.

Personally, if I don't get a satisfactory answer, I'd call again and speak with someone else, preferrably someone in authority at your mortgage company. If after calling enough times you continue to get the same answer, then you'll know you've gotten the right answer. I only suggest this because your situation is life altering and you're in dire need of getting set in the right direction.

Bless your heart. I sincerely hope you can re-finance..

Always keep in mind for future reference: 1) adjustable rate mortgages are often best left to the transferees who know they'll only have the property for a short period; 2) if one day you're buying a newly constructed home and financing with escrows, make sure they've calculated your taxes on improved property taxes upfront; 3) get educated first on the different loans before financing or even re-financing, and get the one best suited to your current and future status and lifestyle.

Best of luck. I sincerely hope, whatever the outcome, that it all works out to your benefit.

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Can't pay higher home loan payment but willing to sell?

Your troubles are affecting millions of Americans today and the banks don't like it any more than you do,yes call your mortgage company and talk with them.Explain you want to keep your home and ask them to refinance you in a loan that's a fixed rate.Most company's will work with you and honestly a credit score of 618 is good enough to qualify you a new mortgage.

Can't pay higher home loan payment but willing to sell?

I agree with that answer.