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      Short sale, loan modification, and principal reduction are among the measures available for New Orleans homeowners upside-down in their mortgages.

      Getting Right-Side-Up Again Is Possible

      If you’re behind on your mortgage and can’t afford to catch up promptly, you’re likely feeling very stuck. But you do have several options for making the best of a bad situation. Here are a few options that can help you get right-side-up again on your mortgage.

      Principal Reduction

      One of the best ways to turn an upside-down house right-side-up again is through a principal-reduction program available through the government or your existing lender. Mortgage companies are generally not in the habit of reducing the principal amount of your mortgage unless your home is worth less than your loan, but it’s definitely worth your time to ask.

      Short Sale

      If you can get your lender’s blessings to sell the house for less than you owe and agree to wipe out the debt, you will have completed what is known as a short sale. Although a short sale might be a viable option in the case of an upside-down mortgage, be aware that some lenders will expect you to pay part or all of the balance due on your loan, although you’ll still owe considerably less than the full amount of your mortgage.

      Loan Modification

      If you do not want to move out of your home, your lender might be willing to lower your monthly payments through a loan modification, which will change your loan agreement and keep you from defaulting on your loan. Many lenders offer loan modification because it can be less expensive than foreclosure and more profitable because you will continue to make payments, albeit lower ones. To qualify for a loan modification, you must be ineligible to refinance, be facing long-term hardship, and be several months behind on your mortgage payments.

      Streamline Refinance

      If your loan was financed through either Fannie Mae or Freddie Mac, you may qualify for streamline refinance with minimum eligibility requirements, but the loan has to have been originated and sold to Fannie Mae or Freddie Mac before June 1, 2009; newer loans will not qualify. The Federal Housing Administration (FHA) and Department of Veterans Affairs also offer streamline refinance with less strict requirements. If your mortgage was financed directly through your lender, they may be willing to refinance.

      Partial Claim

      A partial claim, available only to those with FHA-insured loans, allows a borrower to receive a second loan, with no interest, in an amount large enough to bring the delinquent mortgage current again. The loan does not need to be repaid until the first mortgage is paid off or the house is sold. If you don’t have an FHA loan, you can ask your lender if an “advance claim” option is available.

      Sell The House… Fast

      Homeowners with an upside-down mortgage sometimes find that selling the home is their best option. But selling through traditional means with a realtor and buyer financing can take months, plus the cost of necessary repairs and realtor fees. That’s where Big Easy Buyers comes in.

      If you have an upside-down mortgage and don’t know where to turn, Big Easy Buyers offers fast and easy solutions for homeowners looking to sell throughout the New Orleans area. We can meet you at your home and make you a cash offer on the spot. For most sellers, we can close within 30 days. Contact us via phone or by filling out a quick form to learn about our 4-step process and how it can help you move forward today.