what can i do with a mortgage company who is not willing to negotiate lower more affordable payment plan ?

Question

house is about to go into foreclosure, i thought mortgage companys try to avoid this?

Answer 1

generally, foreclosure is a long, drawn-out process that costs the mortgage company money.

but keep in mind that a mortgage company, like all other companies, are in it for a profit.

they may not want to work with you if the new payment plan makes them lose more money than if they foreclosed on your property and sold it. if the mortgage company's financial position in your house is relatively low, they may proceed with the foreclosure just to recover their money.

Answer 2

Im not sure if you had an adjustable rate mortgage that just went up or what, but when you signed your closing documents, you agreed to the terms. I would try to refinance into a lower payment, or put the house on the market and sell. You could also lease the house to someone else if you could collect enough rent to cover the mortgage and expenses. But don't wait, take action, you do not want a foreclosure on your record! The mortgage company got what money you already paid, and are about to get the house too! They will sell the house themselves and make their money back plus what you have paid already, so they will still profit, plus they will writenit off as a loss!

Answer 3

If the mortgage company won't work with you on changing the terms, talk to them about doing a short sale.

In this scenario, the mortgage agrees to accept less than what is due on the note.

They set the terms and do not have to agree to do a short sale.

Try to get out of the house (sell or short sale) before letting the mortgage foreclose on you.

Answer 4

Your best bet is to try and get a loan from a bank, friends, or family (always, always, always write the terms down, everyone signs it, and notorize it when borrowing money from friends or family!!) and get it caught up.

Once it's caught up, they might be more willing to help you out with getting the loan terms changed.

If the loan is less than 3 years old, you are much less likely to get them to change it without putting down a huge chunk of money. If the loan has been late often, they are much less likely to change it. Yes, lowering it will help you out, but they aren't convinced of a good record.

If it's only been recently, and it's due to circumstances such as a lost job, you can maybe get help from the state, as long as you qualify.

You need to set up a budget in the mean time. Pare out ALL things that are not needed. A need in it's very basic form is something that is essential to your health- medications, food, shelter, heat, clothing. Items like cell phones, cable, internet, etc, are wants. As such, those should be the first things dropped. You can't afford them. Never confuse WANT with NEED.

Go to food banks to get food. You'll have more money to go towards your home. Try to keep the bills as low as possible by keeping lights off when not in use, turn the heat down a few degrees, and unplug appliances when not in use. A lot of appliances draw and use electricity when not used- VCR's, DVD players, Coffee Pots, Microwaves, etc. If it has a digital read out, or a light on it, unplug it. Turn your water heater down.

Sell items you don't need or use, and try to raise the money. Look for a part time job, or do errends & house/yard work to get some extra cash on the side around your neighborhood. Rake someone's yard for $20, watch their children for $20, shovel drives & sidewalks for $20- you get the idea.

Cut out all extra activities that require money- sports, movies, etc. Stop eating out -at all-. No quick stops at McDonalds, or Wendy's unless it's free.

I know you were not asking for info like this, but in your situation, I felt it would help some.

Answer 5

Lenders do not have an obligation to work with someone when the chips are down. Yes, most will as a courtsey.

As a lender, I know bad things do happen to good people. That's one of the reasons there is a law called "bankruptcy". While I am not an advocate for bankruptcy - there are times that is the only option for people.

Most attornies will do a consultation at no charge. I'd call a trusted attorney and ask for this. If the attorney you call doesn't do bankruptcy - ask for a referral.

If you do file bankruptcy, there will be bankruptcy protection offered to you while the process continues.

Good luck.

Answer 6

They may think it's just inevitable and want to get it over with.

Look, it's time you got serious and faced reality. You probably owe less than the value of the home, but it won't take long for the legal fees to pile up and you will owe more than it's worth, and they WILL pursue you for a deficiency.

Get help. Get another source to refinance, borrow the "catch up" amount, sell the house, but do NOT let this drag on. There's no way to win, and lots of ways to lose.

Answer 7

They don't care, the loss will be a tax write off and they will most likely 1099 you at the end of the year. I would hussle and get caught up. If you have enough equity in your home i can do a band-aid 2nd mortgage so you can pay up the mortgage current. goodluck!

Answer 8

To a point, yes. But they are in it to make money and if you arne't paying the full interest each mont they know they could make more money elsewhere with someone who is-- so they want all their money back now.

If its worth enough to cover your mortgage-- get it on the market ASAP and sell pre-foreclosure to save your credit and your finances.

Answer 9

nope, there is no legal obligation on their part to work with you. You signed forms agreeing to the rate and payment so they have no reason to back down unless they personally believe it is in their interest to work with you. Working with you is a general courtesy on their part that they will sometimes work with you but that is strictly up to them and there is no recourse against them for not doing so. I know of a client that lost a million dollar plus home for 4 missed payments and we made out pretty good on it because the resale value was so much more.

Answer 10

Just let them know that is you highest offer and when will be the last time call call and check if they change there mind. if it will not work let it go.

Check this web site out there are going to be a lot of foreclosures
http://www.breakingbubble.com/index.htm