Reduced Mortgage Payment?

Question

Will a mortgage company reduce your payment for a short period of time (2 years) because of a financial set back.

Answer 1

No

Answer 2

Are you already late on your payments? It makes no sense to me but it seems lender may work with you once you are near foreclosure. I know its frustrating! Talk to the lender! 2 years is not really a short time in the lenders world -maybe 6mo?

How bad is the situation - what is your plan for recovery? Be prepared to answer those questions and stress how much you love this home and want to stay when you speak to the lender. I know of someone that tried - "I'm going back to school and need time off" The lender turned him down flat - another person was affected by a hurricane and then lost their job and then got into a major car accident - he asked me help with a refinance - instead we contacted his lender and got a year of deferred interest. His situation was EXTREME and they still added the interest back to his mortgage. It helped him - but not forever.

It doesn't hurt to ask! If they say no what are your alternatives? Maybe consider selling or refinancing to a lower rate/term.

Answer 3

Unlikely. They may defer some payments (up to 6 months), but you still accrue interest and the payments are added back into the loan. When you got the loan you agreed to the terms and the mortgage company has no reason to change them for you. If you don't pay they will foreclose. Contact them first and see if they have other options but I haven't heard of any.

Answer 4

i know of this happening with friends.

You simply need to call them up and ask.

I have two friends that both had their banks charge them interest only for about 6 months (not 2 years). In one case the mother had cancer and they lost income because of her disability. The other friend had 4 kids and lost his wife. The bank charged him interest only while he was trying to sell the house instead of putting him into foreclosure.

It will depend on your previous credit, how much you owe them and if your set back was a choice you made or something that happened to you. I would bet that whatever teh case you need to resolve it in a shorter period of time then 2 years, that is actually 24 months worth of payments, a lot for most people.

Answer 5

Depends on the lender. Due to the current market, lenders will soon release new programs and options to address the many people who have suddenly found themselves in payments that they cannot afford. A foreclosed property is a liability in a market like this to banks, and they would rather be collecting the interest than sell the foreclosed property at a loss. But believe me, when they do release these "updates", they will find ways in which to gauge you on more interest. As I tell all my clients, there is no free money.

Answer 6

Mostly likely not....it may depend if you have a fixed or variable rate. Also, you can probably set up some insurance with the mortgage in case that happens (above), but usually you need to do that at closing.

Answer 7

No, because when you initiated your mortgage, you signed a contract agreeing to make specified payments for a specified period of time. Any variance voids the contract-by either party.

Answer 8

seem!...in case you like an prolonged amortization era or conversion to pastime only product, then this is a definite way that the valuables only isn't well worth the issue. you're able to be able to desire to: a million. sell and be achieved with the loan...you only might injury even in the present industry. 2. Get long term tenants. 3. Convert to area 8 housing, if feasible. changing your loan product is a short term degree only and actually, you should attempt and boost money circulate formerly finding for an amort. previous 20-30 years.

Answer 9

Pretty much unheard of. Never hurts to call them and ask; also check the contract you signed.

Answer 10

Generally not. They seem to prefer to let you lapse into foreclosure and lose even more money.

Answer 11

Not likely. You can ask, but don't expect anything.