RENEGOTIATING YOUR LOAN

In the midst of the economic meltdown, many homeowners are finding themselves in mortgage mayhem as adjustable rate mortgages start to adjust and payments dramatically increase. If you find yourself worrying about how you are going to make your next mortgage payment while keeping the lights on, you may want to give your lending institution a call to permanently lower your monthly payment. Here’s how:

1. Call the Bank: This is the bank that you pay your mortgage to every month. Grab your monthly mortgage statement and you should be able to find the contact information on the upper left or right hand corner of the statement. Ask for the “Loss Mitigation” department. If you get routed to customer service first, escalate to the supervisors and be persistent about speaking to a representative in Loss Mitigation to restructure/renegotiate your loan.

2. Paint the Picture: Once you get to Loss Mitigation, explain to the representative why you are having a hard time paying your loan (you can also be proactive and do this prior to your loan adjusting). Be ready to provide solid financial documentation as they are not going to take your word for it. Once they receive all of your information they will run your Debt to Income Ratio just like they did when you were qualifying for your loan and determine whether you will be a candidate for renegotiation

3. Provide Paperwork: If your lender decides to let you renegotiate your loan, do WHATEVER they say and send in everything they ask for within the require time periods otherwise, you may blow the deal completely!

Once you provide everything they need, you should receive paperwork with new loan terms spelled out. CAREFULLY READ over the new terms carefully to ensure it’s what was agreed to over the phone.

See my post on http://factoidz.com/?p=467