Throughout the last boom in real estate there was a large group of people that took advantage of creative financing and invested in real estate. Alot of these investors used adjustable rate mortgage and other loan like negative amortization loans that wound up getting them in trouble!

Then out of the blue the bottom fell out of the US economy taking the property values down with them. The banks offering these creative loans soon followed and this left many new real estate investors with a rental property they could not refinance because of lower values and even if they could most of the lenders stopped offering the exotic loans these people needed to finance their properties.

If you are one of these property owners that is in this situation and are wondering what you can do to save your investment, get your payments back under control and avoid credit damaging foreclosure you are not alone or without help. Unfortunately most people are unaware of what to do before it is to late.

The best way to approach the situation you are in is to first contact your current lender and let them know about your situation. Explain to them that if you adjustable rate mortgage increases you will be unable to make the payment. Also mention if property values in the area have fallen. Then ask them if they are able to give you a loan modification to protect both you and their investment in you!

The lender is going to review your account history and make a decision based off of your past payment history. If you have always paid your payment on time and were never 30 days late you have a great chance. However if you paid late frequently then they may reject your request. The key is honesty and contacting them early before you get into to much trouble.