Legal Question in Real Estate Law in California

regarding mortgage

I got into an adjustable rate mortgage in 2006. At the time I was happy just to get the house I always wanted wven though I couldn't afford the payment from the beginning. I brought home approx $7000 a month with a mortgage of $2800 a month, which included taxes. Is there anything I can do. my lender encouraged me to embelish my earnings to allow myself to get in to this loan. I spoke with my mortgage broker and was able to get a fix payment for approx $3000 which I cannot afford. Is foreclosure my only option.


Asked on 8/14/08, 7:51 pm

1 Answer from Attorneys
Phunphilas Viravan Law Offices of Phunphilas Viravan

Re: regarding mortgage

When you cannot make the monthly mortgage payments, foreclosure is your ultimate destination, but before it gets that far, there are things that you can do. A foreclosure will ruin your credit and will make it difficult for you to get another loan. You bought your house in 2006, when the market was hot, so likelihood is that your house is not worth as much now as you paid for it. List your house for sale, and if you get an offer but the offer is lower than what you owe on the loan, get the lender to approve a short sale. Most lenders would do the short sale because they don't want an inventory of houses. At least this would save your credit.

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Answered on 8/14/08, 10:04 pm


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