How to Negotiate a LOWER MORTGAGE Payment
- 1). ~ Keep Current on all Mortgage Payments ~
* Being current with mortgage payments may be difficult, but it is important to create credibility with your lender. It proves even though you are in a difficult financial situation, you can still make things work out.
* Even though they might not admit it, a lender will be far more likely to negotiate a lower mortgage payment with someone who plays by the rules and wants to honor their obligations. - 2). ~ Contact the Right Employees at the Lender ~
* All lenders have a Loss Mitigation Department. This is the department you want to contact, not customer service. Always ask for a direct number to this department so you don't have to go through customer service each time you call.
* Explain your situation to the employee and ask for a mortgage modification. Be prepared with a lower mortgage payment you are able to pay. They will want a number of financial documents and completed forms sent in proving you can actually make the new lowered payment each month.
* The process to negotiate a lower mortgage payment will be time consuming and frustrating, requiring daily calls often spending time on hold. However, if successful, the monthly amount owed may be significantly lowered. A loan modification will not lower the total amount owed on the loan, it will reduce the interest rate or extend the length of the loan in order to make the monthly amount affordable. - 3). ~ Contact a Foreclosure Help or Mortgage Negotiation Company ~
* Many borrowers may not have the time or skills to effectively negotiate with the lender. There are professional firms which can be hired to negotiate a lower mortgage payment on behalf of the borrower.
* Lenders are so busy with foreclosures and modifications that they need to be called daily until the homeowners are given an answer to their modification application. If the borrower can not call daily, a negotiation company should be considered.
* The mortgage negotiation company should be carefully screened and researched by searching online for customer reviews and checking with the Better Business Bureau website.
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