Morgan once again had a brilliant post about what to do if your ARM is resetting. Thanks Morgan!

1.  Determine your rate adjustment date. 

2. Determine what your new interest rate and monthly mortgage payment will be. 

3. Determine your credit score. 

4. Determine your home value. 

5.  Pull together your income, asset and credit information. 

I will have to suggest you head over there and read the whole post.

My point here is that today it is very hard for people to get a new loan if they don't have a lot of equity or have a poor payment record or a poor credit score. If that is where you find yourself, take heart. There is a lot you can do.

1. Make sure you communicate with your lender. Don't just put them off. Don't ignore them. Communication is key.

2. Prove to them you have very little or no equity. That tells them that if they foreclose they will lose possibly tens of thousands of dollars.

3. Show them things aren't selling in your neighborhood. A BPO, or Broker's Price Opinion, is helpful. Costs maybe $60 or you could even get one free from a broker who hopes to have an inside track on listing your house.

4. And show them you have the income and ability to pay a lesser amount each month.

You have just one house. The lender has thousands of people just like you. It's the person who calls the loss mitigation department and works things out with proof that will get a loan modification agreement. Ane please put in your name and email and get on my list, for Gosh sakes, so you can get inside info that I can't even put on this blog as it is too sensitive. I never share your info and you can unsubscribe in a heartbeat (but why would you want to).