Housing Bubble Blog: Mortgage Hacks

Mortgage Hacks
Sunday, January 04, 2009

I've noticed a lot of people these days starting or ending their sentences with "...In this economy..." Times are tough and many are concerned about how they're going to pay their mortgage. Let's face it, many won't be able to make that payment each month. Is foreclosure the answer? Maybe, but before giving up, check out these ways to Hack your Mortgage.

Sell your car. Seriously, what's more important, the car you drive, or the roof over your head? Sell your car and buy a bus pass. Selling your call will also save you a lot on other things like trips to the bar or random visits to the grocery store.
Cancel your cell phone. Get one of those 'pay as you go' phones. The monthly fee will be much less than the contract with your cell carrier. If not, then tell people to stop calling you.
Cancel your cable/satellite. Some people spend up to $100 on their cable bill. Ridiculous! Did you know that your local library has DVD titles? A library card is free.
Buy in bulk. This one is a no brainer and you should already be doing this. Groceries, not vodka.

I realize that many people may already be closely watching their finances, yet still unable to make their mortgage payment.

Here are a couple of options before considering foreclosure:

Refinance. With rates in the low 4's, it could possibly save you a few hundred bucks a month on your mortgage payment. Keep in mind that you will be paying closing costs when refinancing.
Rent your house. Why not move into a cheap apartment and rent your home to somebody able to make a monthly payment equal (or more) to your mortgage payment?
Forbearance. You may be able to work out a deal whereby the lender allows you to 'catch up' on your mortgage payments. Most banks don't want to have a foreclosed property on their hands and are willing to work out special terms for you to get back on track with mortgage payments. Pick up the phone and call your lender. Do it now.
Loss mitigation. This is another solutions just short of a foreclosure where a third party assists with negotiating mortgage terms between the homeowner and the mortgage company. Like a forbearance, loss mitigation is intended to help the homeowner with making their payments and ultimately keep their home. Often times this may mean that the loan is modified to accommodate the lender's ability to pay.

More ways to live frugal and Hack your Mortgage:
All Things Frugal
FatWallet Finance

The Simple Dollar

Dough Roller

Get Rich Slowly

posted by author @ 9:00 PM,

2 Comments:

At 9:17 AM, SMALA P2-85 said...: Intelligent tips, but I don't it work for a particular cicumstances. It's better to try, anyway.
At 11:20 PM, Myraine said...: It looks like your blog has so many things to offer... Interesting and informative! Keep it up! Will be introducing it to my friends.

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