is it possible to talk to my bank and ask for a lower payment in order to avoid foreclosure ?/?

Question

what are the odds of my bank giving me a lower payment in order to avoid going into default ??

My payments are $3100 per month, MY retirement is only $2000 per month , the money that I was recieving from baby sitting is no longer available to make up the difference, how can I get my bank to give me a payment reduction so that I can avoid defaulting ? what are some other options, I don't have the money to update the house to sell , I had it on the market 3 times and it did not sell because it needs updating. thanks for your thoughts

Answer 1

Banks are not in the business of foreclosing on property, and will actually do anything reasonable and within their underwriting standards to avoid it. They will not, however, violate those standards. Raise the question; it can't hurt.

If you have significant equity in your home and you're over age 62, you might try a reverse mortgage. I have seen this prevent a number of foreclosures; plus, it will rid you of the payment.

Answer 2

Yes, you can. You may have to refinance. And, you may have to take a new job. The thing to remember is that banks don't want to foreclose because they will almost certainly lose money on the deal.

Your payments are over 150% of your income. That is an incredibly bad situation. You may want to look into bankruptcy. Many states will let one keep one's house during bankruptcy.

As for selling the place, you may have to lower your asking price in order to sell it,.

Another option may be to rent the house out.

Answer 3

$3100 ? My friend do you live in a palace ?
I won't give you the old "why don't you live withing your means" saying. But you should seriously think about it.
You can refinance your Mortgage loan with the bank or look for a better lender ready to take on your mortgage and work it with you.
Or you can sell the house and take a small loss that's better on the long run than foreclosure or extreme debt.
Or you can rent a room or a floor of your house to make up for it.

Just remember the Financial institutions are always ready to work things out with you as long as they get their payments.

Answer 4

Given your circumstances, a bank is unlikely to work with you. It just puts off the inevitable, which ends up costing them more money in the long run. Unfortunately they will look at it as a business decision.

The best thing you can do is see if you can sell the house to one of those people who advertise that they buy ugly homes. (search "We buy ugly Homes")

If they will pay you more than you owe, then you might be ok. Otherwise, then you are probably going to be in trouble sooner than later with your lender.

One thing you could try is renting out a room in the house to generate some money, but honestly with $2000 in income you will be hard pressed to meet a $3100 mortgage once you factor in living expenses.

If you have owned the home for more than 4-5 years you should be ok as far as equity.

Answer 5

You could refinance your loan with the bank in order to change the terms of your loan into something more affordable to you. The bank will most likely lengthen the term of the remainder of your loan, which will reduce your monthly payments, but, it will definately raise the total you'll end up paying to the bank in the long run.

Alternatively, you could sell your house, use the equity you've accrued on it to purchase a smaller place with a more affordable mortgage. Your mortgage should never be more than 20% to 30% of your monthly income. If it is, it's a clear sign that you may not be able to afford it and could easily be foreclosed in future.

Answer 6

You might be able to refinance and extend your loan payments by paying a lower rate per month. It sounds like you have too big of a house for someone with your age and income.

Answer 7

Yes yes yes, The bank does not want to take your house, it is a big hassle for them. Maybe you could refinance what you owe for lower payments. Do you hvae a lot of equity? Just in case you don't know this means what your house is worth verses what is owed - for example if you owe 200,000 but your house is worth 400,000 - they payments would be alot less at a 200,000 refinance. Good Luck!

Answer 8

It looks like below article addresses the question you have ..


Mortgage crisis? Act now to avoid foreclosure

Source: Fred Yager, ConsumerAffairs.Com

Are you one of the millions of homeowners who went for one of those enticing variable or adjustable rate mortgages only to see your monthly payment, which started off low, continuing to rise, escalating to the point where it’s harder and harder, or even impossible, for you to keep up your payments?

Unfortunately, this is an all-too-common scenario being played out across America.

According to the Mortgage Bankers Association (MBA), an estimated $1.5 trillion in adjustable rate mortgages (ARM) are going to see another increase in interest rates this year alone. The MBA predicts this will prompt homeowners to refinance about $700 billion worth of those adjustable rate mortgages.

Read Full Article:

http://www.loanmadeeasy.org/nj.php?DLINK=/press/articles/mortgage_crisis_act_now_to_avoid_foreclosure&TITLE=Mortgage%20crisis?%20Act%20now%20to%20avoid%20foreclosure

Answer 9

Yes this is called REFINANCING. There are hundreds or thousands of websites you can view for a start, but try going to a mortgage company in person. You do not have to refi through a bank, there are private companies who will secure the loan for you as well.

Answer 10

The odds of them lowering your payment if you dont talk to them are zero.

You have nothing to lose, get off the tube and go talk to them.