Printable Workbook
Trouble Due to an Increased Mortgage Payment Amount
Your mortgage payment may increase due to a rate adjustment, increase in escrow, or a balloon payment. If you are unable to handle the higher payments, take action to avoid foreclosure and protect your credit. Consider these options:
- Refinancing – Refinance if you can. If your loan principal balance is less than the current market value of your home, see a HUD-certified housing counselor or your credit union mortgage lender to see if you can refinance your mortgage loan to a better mortgage product with lower fixed rate and/or a longer term.
Click here for the information and documents you will need.
- Loan Modification – Ask for a loan modification if you owe more on your mortgage than the current market value of your home. Contact a HUD-certified housing counselor or your lender to ask for a loan modification to adjust the rate, term or principal amount of your current mortgage to decrease your payment amount.
Click here for the information and documents you will need.
- Government or Lender Programs – Contact a HUD-certified housing counselor to determine if you qualify for “Making Homes Affordable” or other current government or lender programs for mortgage rescue and assistance.
- Budgeting – Careful money management and budgeting can help while you are working out a solution.
- Community Resources – Call 2-1-1 or your local United Way office to identify community resources available for assistance while you are seeking a mortgage solution.
Avoid Fraud
No matter which choice you make, be careful to avoid fraud. Here's how:
- Never pay a fee up front.
- Never make your payments to anyone other than your servicer.
- Never sign over the deed to your home.
