Mortgage Payment Options

Negotiating Options with Your Lender Before Mortgage Foreclosure
Mortgage Negotiating Options - When a homeowner's monthly mortgage payments become too high to pay, it may be time to consider negotiating a new mortgage payment plan with a lender. There are a few different ways to pursue modifying the terms of one's loans, and they are the following: 1.) Negotiate through the assistance of a government program; 2.) Negotiate through the services of a private company; and 3.) Personally take it upon yourself to communicate with the lender and negotiate the terms of a loan.

Preparing for Mortgage Negotiations - Before you head to the negotiating table with your lender, it is essential for you to gather all of the necessary paperwork to prove your financial status. You should gather bank statements, credit card statements, salary stubs and records of your expenses. Lenders will take these items into consideration before choosing to lower the monthly payments that you owe. Also, you will want to have a reason figured out for your request of a loan modification. The usual reasons that people assert for obtaining a loan modification include obtaining a new job with lower pay, the use of predatory loan practices on the part of the lender, the interest rate became much higher or a person experienced a family emergency or illness. These are reasons that usually work in ensuring that the lender lowers one's monthly payments or principle balance.

Planning Your Mortgage Modifications - You should also take steps to make actual plans for your mortgage modification. You will want to pre=plan the terms that you are requesting from your lender. You may also wish to consult with a mortgage attorney to help you create these terms. For example, you may wish to request that your loan be switched from an adjustable-rate mortgage to a fixed-term mortgage. You can also ask to extend the total time period for the repayment of your loan. You may wish to extend the total number of years that you have to repay your loan, such as from 20 to 30 years. Homeowners should be prepared for a lender to meet some of these requests, but they should also be prepared for the possibility that these changes may not be approved.