Question by Polly: Refinancing house mortgage loan?
I just mentioned my problem in my previous question – We bought house & have unfortunately lost our jobs and are now working on to see how we can cope up with our monthly mortgage payment. My question is : In case if we inform the company that we have lost our job and if they can help us to negotiage on interest rate or extend loan repayment time to make our monthly liability lesser…Do you guys know if this can help?
Some friends and elders have asked us ‘STRICTLY NOT TO LET the mortgage company know that we have lost jobs. This will put our creditiblity in question.
I need advise from someone who has either faced this problem before or if he is working for such company. Your advise is very valuable for me. Please guide me rightly my Yahoo! friends!
Thanks in Advance
Answer by GEE-GEE
Did you get the insurance that was offered to you in case anything happened? You know the insurance that pays your monthly payments in case you lost your jobs?
If not, than I would definitely call the bank and tell them. They are more likely willing to work with you if you are honest with them. You dont want them to start calling you because you are late etc. I have been in the mortgage biz for over 16 years and I can tell you that the last thing they want to do is take your house away. Most homes dont have enoug equity for them to make their money back anyways. It costs a lot of money and manpower for a bank to foreclose a home.
Give your answer to this question below!
I used to work for a mortgage company so I can try to be as much help as I can. Until you are a certain amount behind on your mortgage, your bank will probably not be willing to negotiate. Even at that, they may not listen. As far as letting them know that you lost your jobs, there is nothing they can do about it, so there is no harm in letting them know what is going on. When I was working in the industry, when customers let us know those kind of things it actually made me want to help them rather than just being mad they weren’t paying their bills. Also, it gives them the option to check into whether you took certain insurances on your mortgage. Some places require you to keep unemployment insurance on your mortgage. This would pay the mortgage for a certain amount of time while you were unemployed. Like I said, I have never seen a situation where it hurt to be upfront. They may be able to help you more than you think.
Call them they can help you.
Your friends and elders are well-meaning but misinformed. The problem most people face is that they hide from the lender until it’s too late to do anything.
Contact your lender now – this is the company that is servicing your loan, which may not be the same company that originated the loan because often the loan is sold after it is orginated.
On your initial call, you’ll be speaking with someone generally associated with “customer service”. Don’t waste time talking to this person – they can’t help you until the loan is already in default. Tell them you need to speak immediately with someone in “loss mitigation”. They should refer you to the right person – however, please note that this may be someone in “collections”, because some lenders combine their loss mitigation and collections departments.
You’ll need to explain your situation carefully. Hopefully, you’re in a situation where you’ve otherwise paid on time and expect to be able to continue to do so within the next few months when you get re-employed. Ask how you can request a “forebearance” in writing. Get the name, title, and address of the person that you can send this request. If granted, the lender will recast the loan so that, basically, two or three skipped payments can be tacked onto the end of the loan. If granted, this will be in a formal bank document, which outlines the terms and limits the banks liability (disclaimers that the bank is not otherwise giving up its claims, rights, etc.)
It’s a wide misconception that banks want to foreclose on your home. They don’t – they generally lose money if they have to do that. It is in the lender’s best interest to avert a foreclosure, if they can do so with reasonably low risk. That is, the bank needs to rationalize granting a forebearance by mitigating it with proof of your otherwise perfect payment record, employment history, good credit, etc. So, if your credit is still good and your prospects of getting gainfully employed again are good, you may be able to negotiate a deal. Be prepared to provide whatever the bank requires, like verifications of deposit, receipts, paystubs, etc.
Don’t hide from the lender and ignore their letters – this is the worst thing you can do. Instead, your initial instinct is correct -call them, talk to them, get a negotiation started, and create a paper trail that verifies that you are doing everything you can to make good on the loan. Good luck.
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I am sorry to hear about your situation! You can call your mortgage company and explain your situation and see if they can help out in anyway but I am not sure if they will be able to do anything. But what you can do is refinance your mortgage now and cash out enough money to Make your mortgage payment for the next 12 months so you don’t have to worry about loosing your home to a possible foreclosure and/or draining your savings. Now you might be saying how in the world can you get a loan with no job…..Well you can do it as a No Income No Asset loan, This means that the lender does not verify a Job or Assets. They only care about the appraisal and your credit. Hope this helps shed some light on you situation. If you have any questions you can shoot me an email, I manage a mortgage bank so I can most likely answer any of your questions.