In the old days, the choice between the two has always been paying the mortgage and let the card companies expect. In this way, it could keep your home and deal with the card companies when he came back on its feet. With recent changes in lending practices, people who are in loans adjustable, or simply a loan that they can not pay, they have few options to try to refinance to lower your payments, thanks to all the greedy people that inflated the bubble Real estate.
Now, many people are in a mortgage that they can not afford, and are deciding to skip the mortgage, and keep current credit cards. We will see both situations. If you are facing this question, then you need some help, because you owe more than you earn, you are in a house that can not pay, or are in trouble of some kind.
Unless you are in a difficulty, must meet with a credit counselor and budgeting that makes sense. Find out where all your money goes, and eliminate things that do not need as Starbucks and $ 20 spent on a movie and popcorn each order week. If you tighten the belt, and was able to refinance, you should not have to worry about what to pay and what they are not paid.
You can also call your mortgage broker (If they are still in business!) or the lender to see if they would give a better price, as it could be left behind. You will have more luck if you are current with their payments face when you call them a few months back. Either way, they will try their best to keep at home.
If you are in a mortgage that can not afford the consequences of your credit card are more severe than non-payment cards, but if you is in a house they can not pay, you have to do something. You can stop paying the cards, for now, and take that money and apply it to pay the mortgage. The cards can be treated later by a process called debt mediation which will take 30-60 cents on the dollar after few months is delayed.
If you want to keep the house because it is too much for you, you can not pay the mortgage real, or if you are upside down, it's time to downsize to a smaller house or moving to an apartment. Keep credit card payments on current account allows you a break. In this way, you can recover costs and until they are paid monthly there is a good possibility that remains open, although some is taken up interest rates to 30%, and / or reduce your credit limit.
If you need help with what to do to get rid of the house, try the Department of Housing and Urban Development hud.gov, and can refer to a certified counselor who will give you options have, or try your existing lender for all programs they may have. A short sale is one of its last resources, and just leave the keys on the kitchen counter and west.
If you can re-finance, or cover mortgage payments and you have unpaid credit cards, you can find out more information about debt mediation over at our sister site, Debt Chemotherapy If you have bad credit that is preventing you from getting a refinance loan, or if you have already lost your home to foreclosure, did you know that you can legally remove negative credit items from your credit report? Visit our website for more information on how to clean up your credit report.
Christopher Winkler
Senior Debt Analyst
http://www.MyRestoredCredit.com
Mortgage Refinancing Secret Exposed www.RefiAdvisor.com
