The majority of lenders are not in the business of real estate aquisition, they are in the business of lending money. Putting a home into the foreclosure process is very costly to a lender, therefore they really have no desire to add your home to the list. Most lenders will work with you if your current financial situation is temporary. For example, a temporary job layoff, injury or illness that requires several months for recovery. Contacting your lender before things spiral out of control is most important.
If this is not an option you can contact us and if you are not already late we may be able to place you in a program that is better for your current situation than you are currently in.
One advantage to refinancing is you get a 30 day reprieve of making a mortgage payment.
Most lenders don't want to be associated with putting a family out on the street, so it is always a good idea to contact your lender to make up your payment in a matter acceptable to both parties.
You should also examine why you cannot make your current payment, will a temporary fix actually solve or just delay the problem? You want to be sure that if you choose to refinance and get a lower rate will you still be able to make your payments even at a reduced level. If you do decide you just cannot continue to make payments at your current level you may want to consider selling your property and moving into something more within your means.
If refinancing does not cure your current situation, then selling is not a bad option. It is better than having a foreclosure or a bankruptcy on your credit report. People make the mistake of buying to much of a home all the time. Sell now and protect your credit score, and maybe your situation will change in the future, and you will then be able to purchase a different home.
Be very careful when dealing with "foreclosure specialists" who may approach you. Common tactics include transferring title of your home to another party, letting someone else make arrangements with your lender or trading some of the equity in your home in exchange for upfront cash.
If you encounter a "foreclosure specialist" be sure to avoid signing a quit claim deed where you actually assign ownership of your home to another individual or company. This could cause you to actually lose your home.
It is very important that you take immediate action once realizing that you no longer can afford your mortgage payments. Whether you want to modify the current mortgage with your lender, or refinance, you would have better terms and more options before you actually default on any payment.