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7 Ways to Renegotiate Your Mortgage Terms When You Can't Pay

If your mortgage due date comes and goes and you're unable to make your mortgage payment due to a job loss or another situation beyond your control, don't pretend there isn't a problem by ignoring it.

Pick up the phone and call your lender because they can probably help protect your credit and keep you in your home.

Whether you're late because of an unanticipated illness or because you've been laid off from your job, one late payment isn't the end of the world, but communication with your lender is vitally important because it demonstrates to them that you care about your credit and making your payment.

When you call them, they'll probably ask you if you just have a temporary stoppage of income or if your financial situation has changed. If you've lost your job, and future payments are in jeopardy, let them know right away because there are some steps you can immediately take to reduce or prevent the possibility of foreclosure.

Depending upon what kind of loan product you're in will determine what steps your lender may or may not be able to take. If you have a conventional conforming loan, some lenders may be able to begin analyzing your financial situation and working out a solution that is beneficial both to you and the lender. If your loan is in some way government backed or insured, government rules may require you to be 90 days in arrears before your lender will be allowed to discuss alternative options with you. Either way, you need to communicate with your lender.

Here are 7 examples of what your lender may be able to do to help you:

1. Waive late payment fees

2. Give you an extended period of time (perhaps as much in 12 to 24 months) to get caught up on your payment by adding a fraction of your outstanding loan payment balance to your payment each month until you can catch up

3. Accepting a partial payment

4. Moving your current payment to the end f your loan, allowing you time to get your financial house in order

5. Granting you a separate interest-free or low interest personal loan for the amount of your missed payment

6. Interest or principal reduction

7. Loan refinancing or re-amortization

Your lender doesn't want your house ' they want your payment. While they would prefer that your payment come in each month like clockwork, lenders are very well aware of many of the financial difficulties borrowers are having in making their mortgage payments.

Your lender probably won't volunteer their assistance, especially if they don't know you're experiencing problems making your payments.

All lenders don't offer borrowers all of these options, but your lender most likely has some of these available to help you out. You do have to qualify for this help from your lender. You may be required to provide proof of job loss, as well as a detailed financial statement, but if it helps keep you in your house I think it's one of the smartest things you can do.

What do you think? Would you rather make a phone call or risk your house?

About the Author:

Darrin Roseborsky is a Refinance Specialist with OMAC Mortgages, seminar speaker and president of the Roseborsky Group and HomeRefinanceCoach.com. Darrin can help you MAXIMIZE your equity PROPERLY and help you choose options that make the MOST SENSE for your situation! Learn more about how it works at: www.homerefinancecoach.com

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