I am 90 days past due on my mortgage

If you're 90 days past due you are almost forced into Chapter 13 bankruptcy. Which in reality is nothing more than a reorganization of your debt.

If the Sheriff has not posted a notice on your door or no attorney representing the mortgage company has contacted you, you can try to work out a deal with your current mortgage company! Your best option is a loan modification!! Try to get a fixed rate! Mortgage companies can do it, however, some do not like to. They may just be a servicer for the true owner of your mortgage, so it may seem difficult to negotiate! Just make sure they understand the grim reality of the economy and where home values are going!

Your second option is a forbearance agreement. This is not the best option because many times your current mortgage company will report you late. Therefore, your credit is damaged and the problem is not really addressed, especially if you have an adjustable rate mortgage. A forbearance agreement takes the amount of money you're behind and divides it by 12 or 24 months and raises your payment considerably!

The loan modification is the best course of action because the mortgage company will add the amount you are behind to your mortgage balance and your payments can go up. However, it would go up a lot less than the forbearance agreement, plus your credit is effected less! Because it makes you current! While you are at it, make it a fixed rate! Changing an adjustable rate mortgage to a fixed rate program solves a problem, if in fact the adjustable rate loan was moving up in rate and payment!

Please realize that before you start working out deals with your current mortgage company you must know what position you are in. You will be one of these three positions:

Position Number One: Your house is worth less than the amount of money you owe!
Position Number Two: Your house is worth about what you owe.
Position Number Three:You owe less than your home is worth.

Determining what your position is, is the most important thing to do before you start working deals. If you're in position one, your house being less than you owe, well, you're in the stronger or better position! You truly have nothing to lose. I am sorry you that you could lose your home. Why be worried about losing something that is not worth what you owe? I know you do not want to lose your home. However, if in reality you want to save it, act like you're ready to lose it, or give it back! Watch how fast your mortgage company modifies your loan when they realize your house is worth less than you owe and you could care less! If you play your cards right, you could walk away with your home, a low fixed rate loan and a balance slightly below the true value! The mortgage companies benefit, because, they have a loan that is performing and a tax write-off for that year!

Position number two, well you are in a similar boat as position number one! The real estate market in most places is going lower! So your most important fact is what is your home worth or better yet, what could you sell it for quickly! The best advice comes from a Realtor in your area! They will come to your home, and value it for you! Tell them you need to sell it fast. When you know that "number" or "value" placed on your home then you will truly know your position and how to negotiate with your bank, mortgage company or servicer!

Position number three. You owe less than the house is worth. It's hard to motivate a bank, mortgage company or servicer to forgive a portion of your mortgage if there's equity, but there is no harm in trying. If you're current on your mortgage some may work with you. if you ask them for a payoff that may prompt a call from their loan retention department. If they call you, then you know they want to keep you and you could work out a sweet deal! If you're behind on the mortgage try to work out a modification!

Again it's hard to predict what kind of deal you can get, because, you may not be dealing with the true owner of the mortgage. A bank is the direct holder of the loan! So you are dealing with the true owner! A mortgage company that you are paying could also be the owner of your loan. However, sometimes mortgage companies and or servicing companies are acting as a loan servicer on behalf of the true owner of the mortgage! That's why sometimes it could be hard to get answers in a timely manner!