Fix the Mortgage.

Modification. You should never think that there is no way you can come up with a solution to solve your mortgage problems. You should at least try to negotiate/modify your mortgage loan with one of the following: (1) a repayment plan which allows you to make up missed payments over time and stay current on your ongoing payments (2) a forbearance agreement where the Bank agrees to reduce or suspend your mortgage payments for a period of time (3) a reduction in your interest rate (4) a conversion of your mortgage from a variable-rate to a fixed-rate (5) an extension of the loan’s repayment period (6) refinance—replace the current loan with one that has a new interest rate and a new repayment period. 

New Homeowner Rules. These rules provide for the reduction in certain mortgage loans. The rules are specifically designed to help homeowners avoid foreclosures so they can stay in their homes. 

Reverse Mortgage. If you are at least 62 years old and have significant equity in your home (equity is the excess of the home’s value over the mortgage loan), you might consider a reverse mortgage. You can use this type of loan to pay off the lender and receive some money each month. You don’t have to pay off a reverse mortgage—instead, the loan is collected after your death, from the home equity. These mortgages are not for everybody. Plus, some of the companies in this business will rip you off.