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Guest

I have a first and second mortgage and I am currently going through some financial difficulties (bankruptcy). I am current on both, however the possibility of having to throw in the towel and walk away from my home has become very real. I have no equity. My interest rates are very much on the high side and because of the negative equity no one will or can refinance me. Is it possible for the current mortgage companies to refinance/lower the interest rate for me rather than have me walk away from my home? A more reasonable rate just might make the difference in me being able to keep the house rather than loose it. I've had many companies think they have something they can do only to be told after look into it they can't. Any ideas/comments? Thank you.

Guest

A mortgage modification can be possible where the interest rate is reduced and the default amounts are added to the principal balance with extension of the total term of your loan.

If this is agreed to by the lender then you would be in a better position to afford the payments and continue the mortgages.

Guest

Thank you for your response, that seems to be some encouraging news.
Is there anything particular or is there a certain name of what I would be asking for? Would I or should I just explain to them the circumstances as I mentioned in my post? I am currently and always have been up to date with my payments.

miller_st · Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)

You should contact the mortgage companies and explain the difficulties you are facing. As you have been current with the payments chances are they will try to develop a new payment plan which you can afford and continue the mortgage. Such provision by which your mortgage can be changed is called as mortgage modification which is considered when there are chances the borrower might default and the house would go into foreclosure.

You can read more about it from this page: http://www.mortgagefit.com/loss-mitigation.html

Miller

helping_user · Posted: Tue May 29, 2007 10:19 pm Post subject:

Hi Dad,

Welcome to our community.

It's a very common problem for now days. I suggest you to have a talk with the lender and brief him the complete financial scenario. And I am quite sure you get some positive result.

Because, no lender wants to take the steps like foreclose or something likes that. If you can explain him in very well manner that if he can suggest some better loan option than it will be easier for you to afford the loan. Definitely, you are going to get some loan option.

Let the community know what discussion you have.

Thanks,
Your Son Smile

Guest

Thank you all for the encouraging answers. The reality of the posibility of loosing your home is unbearable at times. I will take your advice and talk to my lenders. Hopefully their answers will be as encouraging as yours have been. Weather or not my lenders can work with me, I do thank you all. There is a definite feeling of at least a few bricks have come off my back. Whenever I find out what they can or can not do, I will let you know.

Guest

Sorry,but I thought of one more question. I have 2 mortgages (never late and up to date on both) Can I talk to "both" lenders about a modifacation or is it one or another? Thank you....again.

miller_st · Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)

Hi,

As 2 mortgages are from two different lenders you need to contact both of them to talk about possible modification of your loan. And let us know what they say.

Miller

helping_user · Posted: Wed May 30, 2007 9:23 pm Post subject:

Welcome Dad,

Definitely, you need to have a talk from both the lenders if you want to reduce the payment for both mortgages. And Since you never late and up to date on both the mortgage payment, I am expecting to hear positive response from both of them.

Thanks,
Your Son Smile

motomom716 · Joined: 18 Apr 2007 Posts: 14 7.61 Dollars($)

I have just gone through working out a repayment plan with our mortgage company and my best advice is to contact them sooner than later and there may be more options to help you out.

Samantha

Hi Dad,

I guess you are thinking of filing a bankruptcy or is it that you've already filed. Well, it is better to go for alternative options rather than do something that's going to affect your credit status. I shall agree with Motomom here. You need to talk to your lender immediately and fix upon an option that will help you pay off your loans and avoid bankruptcy. And, you can even consult a credit counselor. he can advice you on how to prepare a budget keeping in mind, your monthly payments on the 2 loans as well as your expenses.

Hope this helps...

God bless you.

Samantha

Guest

Well, I guess the last person out can turn off the lights and lock the door. I have just finished talking with my mortgage companies and none of them offered any kind of help at all. I can't explain the feeling I have now.

Guest

I would suggest that you talk with housing counselors at ACORN. They can try to convince the mortgage companies to come to a resolution which can help you save your house from foreclosure.

Posted: Tue Jun 12, 2007 6:11 pm Post subject:

Is there a site you might know of that could tell me what to expect or what to do in a foreclosure situation? Is there somewhere I might even be able to ask questions to someone who has gone through a foreclosure? My mind is hitting me with dumb (maybe not so dumb) questions like what to do with the utilities (gas-electric-etc.) and other things.

miller_st · Joined: 17 Jan 2007 Posts: 918 168.95 Dollars($)

If you are unable to make the payments and have defaulted then first thing to do would be to contact your lender and tell him about the financial trouble you are in.

It is possible that your loan is modified so that you are able to afford the payments. This is done by extending the loan term. Other possibility is that payments are stopped for some months if your problem will get corrected in a few months time.

These all options are called as loss mitigation options which can be started to save the mortgage and avoid foreclosure on the home.

Please go through the loss mitigation page I had referred in my earlier post on this page for more detailed information on these options that are possible to save your home from foreclosure.

And also please if possible let us know about the situation you are in so that we can try to provide more suggestion to help you out.

Miller

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