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Re-Negotiating Terms of An Existing ARM

Posted on: 25th Apr, 2007 06:31 pm
I have an ARM on a single family home that is going to increase my monthly payment by $250. I can't manage this kind of an increase on my limited salary.

If I can get the lender to maintain the current payment amount, I am able to keep up with it. What are the chances that I can go to the lender to request they do so or I will have to hand the property over to them?
hi rick,

welcome to mortgagefit discussion board.

you do not have to hand over the property, don't even think like that.

with your financial position if you cannot afford the payment increase then look to refinance it. contact your lender and discuss if a refinance will be possible or not and what rates you can get for the refinance.

Posted on: 25th Apr, 2007 06:48 pm
It would really depend on what your current credit scores are. This would be what the lender would be looking at, along with your mortgage history for the past 12-24 months. This would dictate what you would be offered by the lender.

From your friend,
Posted on: 25th Apr, 2007 08:21 pm
Hi Rick,

If you think you will not be able to carry on the current payment plan, you may request the lender to modify the plan. You need to explain your situation clearly. Be straightforward and let the lender understand that you are in real trouble but still trying to pay him for the loan.

Posted on: 25th Apr, 2007 11:44 pm
Thanks to all for replying. James, your advice gives support to the idea of renegotiating the existing mortgage(s) - there's a second as well.

Although I didn't go into all of the details in my initial post, we did try to refinance. Even though a refinance application was conditionally approved, we couldn't find an affordable way to proceed.

This home is in a severely depressed market (Michigan) so the debt is much greater than the current appraised value. With negative equity, it appears to be best to try to some how "buy time" until the market turns around. When it does, it will then make a lot more sense to refinance.
Posted on: 26th Apr, 2007 07:31 am

You need to call your lender. Assuming they are either a locally based regional company or a national lender more than likely they will find a way to re-do your existing note without refinancing. They understand what is going on particularly in Michigan and they don't want the property back either. Some national lenders are proactively offering streamline refinances to existing customers with expiring fixed interest rates to help them stay in the home.

good luck.
Posted on: 26th Apr, 2007 11:25 am
Thanks for replying Ken. Your advice is both encouraging and helpful. The lender in this case is Citifinancial Mortgage in Irving Texas.
Posted on: 27th Apr, 2007 06:38 am
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