We fell behind on our payments over the last year and we tho

katie_winans · Joined: 22 Aug 2008 Posts: 1 1.36 Dollars($)

We fell behind on our payments over the last year and we thought we had paid everything up to date, but now after we paid everything(my husband spoke with someone that said everything was current) The mortgage company calls to say they are raising are payment from 1458.00 to 2300.00 a month and saying we owe more late fees (400.00) and that are escrow is negative 2000.00. Does this sound wrong?

Guest 0.10 Dollars($)

Hello.

It this is a ARM? I think because of the rate adjustment your mortgage payments has been increased. Why don't you try to refinance and turn the mortgage into FRM? Do you have a good credit score?

cliff · Posted: Fri Aug 22, 2008 10:17 am Post subject:

Hello Katie,

You may try to refinance. But you may also talk to your lender and ask for a loan modification to get a Fixed Rate Mortgage. Be sure to try to speak to someone within the Loss Mitigation department of your lender. Be sure to let them know that you want/need a fixed rate. And even go ahead and ask for them to try to lower your rate.

Hope we have been of help to you. Let us know if you still have other questions.

Good luck.

laphillips

Welcome Katie,

Sometimes it seems lenders speak another language. When you asked if you were caught up they were probably only looking at the payments. They probably took as much of the fees (late charges, etc.) from the money you sent that applied to their income & applied it your account. Your escrow would deal with your hazard insurance & property taxes so it came last.

I would ask for a complete accounting (statement) of how the money was applied along with any that was paid out for taxes & insurance (you want to avoid surprises as far as tax liens & insurance coverage go). If they say you still owe them money make them show you!

When you're satisfied, if you can't afford the increased payments, explain this to them, tell them you're afraid this will force you into foreclosure proceedings and ask them how they can help you avoid this situation. There should be several options available.

You might be interested in perusing this report published by FREDDIE MAC (Federal Home Loan Mortgage Corp.)
http://www.freddiemac.com/service/msp/pdf/foreclosure_avoidance_dec200 5.pdf
"FEWER THAN HALF OF HOMEOWNERS CONTACT THEIR LENDERS BEFORE ENTERING FORECLOSURE.
Contrary to popular belief, banks and lenders substantially prefer mortgage workout plans and debt solutions to foreclosing on defaulted mortgage property – foreclosure can be far more costly and worsens America’s credit situation in an already weakening economy."

Don't hesitate to ask questions!

0.10 Dollars($)

Escrow balance a negative $2,000? Perhaps you talking about an escrow shortgage. $2,000 cash deficit is $166.67/month but that's only the start. Escrow shortage will be greater than that; think of it on a pro rata basis although that is NOT the way it's calculated. After that add the monthly increase is the tax or insurance figure that increased.

The last thing you want to do is refinance your way out of a good rate, if in fact you have one, to cure a temporary situation. If it is the result of an escrow shortage, see if your lender will go for a 24-month recoupement period.

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