There have been many problems lately with mortgage loans.

In the United States there has been an incredible amount of backlash and financial instability due to the mortgage crisis. We have all read the news as to why this has happened but forget to realize that it is a continual thing. People are still suffering because they are not able to pay off a mortgage loan.

It is the case that a number of banks have been very unresponsive in working with people that cannot afford their mortgage loans. It is a good idea to have a basic understanding of what it is that you can do in order to try and help yourself to cope with these payments. If you are having troubles with you mortgage loans, there are four basic options that you have for dealing with this problem:

1-You can get a loan modification. What this means is basically that your mortgage loan lender can agree to reduce the payments so that you can have payments that are more affordable for you. It is a good idea to shop around and to see if you can have your mortgage transferred to a bank that is willing to create a consolidation account for you. These accounts are basically created by taking all of your debts and putting them into one basic account. Instead of paying a whole bunch of different lenders, you are paying only one for one large sum. If you can find a lender that can create a consolidation account for you, the fact that you are also taking all your other debt payments and running them through their banks, might also enable you to reduce the mortgage payments that you are making. Essentially since you’re giving that one lender more business, they are willing to decrease your mortgage payments in the long-term.

2-Another thing that you can try if you are in deep trouble is to have a short sale. In order to have a short sale, your lender has to agree to let you sell your home for whatever you can get at today’s market. With a short sale even if you get less than the amount that you actually owe, the lender will agree to forgive the excess amount owing. Always make sure that you completely understand the contract that you’re filling out when you’re doing a short sale; make sure that you will not be asked to pay the extra amount that you would still owe, also make sure that you understand the minimum amount that you can sell the property for. Remember that the real trick here will be trying to sell your home in a very difficult market.

3-You might also be required to do a deed in Lieu of foreclosure
. This basically means that you give the house back to the lender and that the lender agrees to not go through foreclosure. This is a rare occurrence but you can ask your lender about it. Lenders will usually require that you attempt to do a short sale before they consider this type of action.

4-If you are not able to participate with the lender in any of the above actions, then foreclosure is usually the final outcome. If foreclosure does happen be aware that in some states, the lender can sue you for any losses that they incur if the sale price is less than the outstanding mortgage balance.

It is always a good idea to stay well informed as to what the State and the Federal government are offering in order to help you in your particular geographical area. Stay informed by contacting the State and the Federal government agencies in your area. The laws between states can be quite different so you must stay aware of these differences so that you can use them to your benefit.