How to Renegotiate your mortgage

Many Americans are finding it increasingly difficult to make their mortgage payments due to the struggling economy. If you find yourself in this situation, it may be worth calling the lender that services your loan to discuss a mortgage renegotiation. Here is how to go about it:

1. Call and ask for the loss mitigation department or the department that handles renegotiation inquiries.
2. Explain why you can’t afford your payment and be ready to prove it!
3. Send them your pay stubs and proof of monthly obligations (other debts, childcare, etc.). The goal is obviously to prove that your ability to pay the debt has declined.
4. Once the lender gets the information from you, they will run a debt-to-income analysis to see if you are a good candidate for renegotiation.
5. If they decide to renegotiate, they will send you new terms and conditions to sign.
6. Let us know if you are unsuccessful in renegotiating with your lender. You can call us for recommendations on organizations that specialize in renegotiation.
7. The government is looking to potentially contribute to the cost of re-writing the loans to slow foreclosures as soon as the new administration takes office. So keep this in mind, as it would be very helpful in adding to the willingness of the lenders to help.