The latest figures from the Central Bank show that up to 20,000 homeowners are two years or more behind with their mortgages. About 7000 buy-to-lets are in arrears.(Courtesy: Independent.ie). Well, the situation is pretty grim because the distressed mortgages are one of the most non recommendable situations both for financial institutions and loan payers.

Distressed mortgages may take place due to various reasons. Some people might start a loan paying a certain amount in the beginning, but might not be able to cope up with the increased mortgage amount when it changes from the fixed to the variable one. There might be other situations which might force them to go for a mortgage. The major reasons for them might be sudden loss of job, death of a near and dear one, critical illness expenditure as well as sudden family problems like divorce or separation cropping up in the family. These incidents leave a person shattered for life and also incur huge expenses. This easily makes them default in their regular payments thereby leading to distressed mortgages. One need not be fearful of such incidents as life is a mixture of ups and downs. When one faces such a situation where they cannot avoid going into a distressed mortgage, then they should search for the prevalent options available in the market to pick them up from the underwater. There are various online companies that are working on providing these homeowners with the most affordable solutions and guiding them in effectively reducing their mortgages. The government is also putting a serious effort in helping theses homeowners by organizing various programs which essentially helps the borrowers in sustaining their mortgage payments and reducing the scope of the losses suffered by the financial institutions in these mortgages. They are creating options which help the homeowners in retaining their property and also refinancing at a lower rate of interest.

The residential whole loans on the other hand take place in a situation where the commercial mortgage or a residential one is given to the lender by the borrower where the mortgage has not been securitized. In such cases normally the residential whole loan lenders sell off their loans in the secondary mortgage market to minimize their potential risks as well as capitalize on their principal gains.In case of residential whole loans, the borrower sells the whole loans in the secondary mortgage to collect the capital from the market which they further invest to provide the borrowers with additional loans.

So, if one searches for the correct avenues theres a ray of hope in the case of distressed mortgages as well as residential whole loans.