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The amount owed on mortgages in the United States far outstrips credit card debt.
- The average principle amount owed on a mortgage is $69,227.
- Nearly 14 million homeowners, about 19% of all homeowners, owe more than $100,000.
- More than 1 million homeowners have 3 or more mortgages.
- 1.8 million homeowners have outstanding loans equal to 100% or more of the value of their home.
Home foreclosures are up, in part because of defaults on riskier sub-prime loans. In recent years, millions of Americans took out adjustable-rate mortgages (ARMs) that offer a low rate for the first few years, then "reset" to a higher rate.
Call your lender if you missed or are about to miss a payment to discuss your options, which can include negotiating a repayment plan, moving a lump repayment to the end of the loan or extending the length of time of the mortgage.
Sell the house if all else fails because a foreclosure can damage your credit record more than a bankruptcy, hurting your chances of buying a house in the near future.
If you're struggling with mortgage payments, the following are steps you can take to save your home:
- Contact the Union Plus Mortgage Program (1-800-416-5786, 8:30 am to 7 pm ET, M-F) or your lender as soon as possible. Talk to your lender before you fall too far behind in payments. Many lenders will work out payment plans and other options.
- Refinancing options. Generally you'll want to choose more secure fixed interest loans and avoid zero-interest or adjustable rate mortgage (ARM) loans since your payments can balloon to a size that you are unable to pay in the future.
- Call the Union Plus Credit Counseling Program at 1-877-833-1745 or complete a confidential, secure online form. Experienced financial advisors can provide a free budget analysis and help you manage your money.
- Contact a bankruptcy attorney through the Union Plus Legal Service at 1-888-993-8886 (9 am to 7 pm ET, M-F) to find out if bankruptcy is a better way to save your home.
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