How to Negotiate With Your Lender to Keep Your Home
Do some research to learn about your options., Call your lender’s loss mitigation department to let them know about your financial situation and that you want to keep your home. , Ask them about what programs you may be eligible for. , Consult with...
Step-by-Step Guide
-
Step 1: Do some research to learn about your options.
Check the Internet, read newspaper articles, visit the library and read through other reference materials such as your state’s foreclosure statute laws.
Weigh all your options carefully before making any decisions.
Common foreclosure prevention options that may be available to you include the following:
Mortgage modification.
The lender modifies the existing terms of your current mortgage by extending the loan term and reducing the interest rate as well as sometimes reducing the principal in order to lower your monthly payment.
This option is used when you are upside down on your mortgage and owe more than your home is worth.
Refinance.
If you have equity in your home, you can take out a new mortgage with a lower fixed interest rate and pay off your current mortgage, lowering your monthly payment.
Reinstatement.
Paying any default amounts, fees and interest and bringing your payments current.
Forbearance.
Your lender allows you to catch up on the amount you owe over a three to six month period and then your payment goes back to where it was originally. -
Step 2: Call your lender’s loss mitigation department to let them know about your financial situation and that you want to keep your home.
,,,,,,,,, -
Step 3: Ask them about what programs you may be eligible for.
-
Step 4: Consult with a real estate foreclosure defense attorney or HUD certified housing counselor for advice on your legal rights and remedies.
-
Step 5: Decide which option you want to pursue to keep your home.
-
Step 6: Find out what documents your lender needs to implement the option you have selected.
-
Step 7: Download the appropriate forms from the lender’ website
-
Step 8: or ask them to mail them to you.
-
Step 9: Complete the necessary paperwork
-
Step 10: and submit it to the lender.
-
Step 11: Follow-up a few days later to make sure they received everything.
-
Step 12: Keep calling until you receive a response from the lender’s negotiator.
-
Step 13: Counter their proposal if you are not satisfied with the terms until you and the lender come to an agreement.
Detailed Guide
Check the Internet, read newspaper articles, visit the library and read through other reference materials such as your state’s foreclosure statute laws.
Weigh all your options carefully before making any decisions.
Common foreclosure prevention options that may be available to you include the following:
Mortgage modification.
The lender modifies the existing terms of your current mortgage by extending the loan term and reducing the interest rate as well as sometimes reducing the principal in order to lower your monthly payment.
This option is used when you are upside down on your mortgage and owe more than your home is worth.
Refinance.
If you have equity in your home, you can take out a new mortgage with a lower fixed interest rate and pay off your current mortgage, lowering your monthly payment.
Reinstatement.
Paying any default amounts, fees and interest and bringing your payments current.
Forbearance.
Your lender allows you to catch up on the amount you owe over a three to six month period and then your payment goes back to where it was originally.
,,,,,,,,,
About the Author
Kenneth Richardson
Kenneth Richardson is an experienced writer with over 13 years of expertise in telecommunications. Passionate about sharing practical knowledge, Kenneth creates easy-to-follow guides that help readers achieve their goals.
Rate This Guide
How helpful was this guide? Click to rate: