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cangie8865, Home Buyer in Detroit, MI

My mortgage company is not willing to work with me on my interest rate. Any suggestions?

Asked by cangie8865, Detroit, MI Tue Dec 2, 2008

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What is your reason for wanting to negotiate your interest rate? If you've suffered some type of hardship, usually lenders will work with you. Your hardship needs to be documented as well as your financial statements, income and expenses. Loan modifications are being done, but due to the high rate of foreclosures and short sales, loss mitigation departments are over loaded with files. If you want to negotiate the terms of your loan, you need to do your homework and provide sufficient evidence of why they should negotiate your terms and make sure your finances support what you are negotiating. Hope this information helps....let me know if you need more information. Good luck!
0 votes Thank Flag Link Tue Dec 2, 2008
Yes Cangie you normally do need to become delinquent to be considered for a loan modification. Why? Because why would a lender agree to take LESS money when you're already paying them? They're a bank remember. Besides, lender's hands are full already dealing with people who have already demonstrated hardship. If someone is still making their mortgage payments (they don't care about the lengths you have to go through to do it) then the bank has bigger fish to fry. A bank is not going to willingly take less money unless the only alternative is a more expensve foreclosure.

That's simply the way it works and if you have a decision to make between preserving your credit and being able to make your mortgage payment then I guess you have to make the best decision for you personally.

As far as refinance, FHA is probably going to be your best options but the house still will need to appraise high enough.

I dont mean to come off as harsh. It sounds like you're in a tough situation and I hope I've provided at least a little insight. Keep your head up and do what you need to do. Best of luck
0 votes Thank Flag Link Thu Dec 4, 2008
Canige, thanks for the clarification! It sounds like you need to refinance to secure a lower interest rate so that you can remain in good standing. You are right, your current mortgage will really not be able to help unless you can demonstrate hardship via documented expenses and income. A new lender who can help you refinance will need to see these things as well as your credit score. It would seem a fixed rate FHA loan would be the best option for you but again that is a question for a reputable lender. Is there a possibility of a friend or relative moving in to help out with the mortgage payment?
0 votes Thank Flag Link Wed Dec 3, 2008
It seems as if you must be delinquent before assistance is provided. So the long of the short is, I need a high score to get approved for refinancing, but delinquent on mortgage payment to receive hardship assistance.

Will the best answer please stand up?
0 votes Thank Flag Link Wed Dec 3, 2008
want to negotiate becasue currently my rate is 8.5 on a 40 year mortgage. It is expected to increase 09. I have been on disability since 07 and not sure when I am returning back to work. I am concerned and desperate to find other options that will keep my credit in good standing.
When my disability first began a few bills did fall behind (but never the mortgage). It seems as if they want your mortgage to be delinquent before any assistance is provided.

The value has dropped and nice brick homes that once sold for 50-70k are now selling as low as 6500!!! That particular style is now listed between 20 and 30k. - A few minutes ago
0 votes Thank Flag Link Wed Dec 3, 2008
I want to negotiate becasue currently my rate is 8.5 on a 40 year mortgage. It is expected to increase 09. I have been on disability since 07 and not sure when I am returning back to work. I am concerned and desperate to find other options that will keep my credit in good standing.
When my disability first began a few bills did fall behind (but never the mortgage). It seems as if they want your mortgage to be delinquent before any assistance is provided.

The value has dropped and nice brick homes that once sold for 50-70k are now selling as low as 6500!!! That particular style is now listed between 20 and 30k.
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Wed Dec 3, 2008
You need to clarify your question. Is it concerning refinance, or new home purchase. Speak with your mortgage broker however all home owners information is feed into a formula based on your credit score, debt ratio, employment history, and etc. It does not matter if you are refiance or purchasing a home. Lower the credit scores better interest rates.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Dec 2, 2008
The FDIC provides some information for consumers on selecting a lender on this website.

http://www.fdic.gov/consumers/loans/index.html

There are other links that may provide additional information or look under Consumer Protection on the top navigation menu.
0 votes Thank Flag Link Tue Dec 2, 2008
Cangie, I am assuming that you mean your current mortgage company is not willing to modify your existing interest rate on the house you already own. If so, have you checked with other lenders to see if you can refinance? Many times your lender will not modify your existing loan if you are not displaying hardship, i.e. difficulty in paying due to monthly debts exceeding income. This is a question for a reputable lender. I wish you luck!
0 votes Thank Flag Link Tue Dec 2, 2008
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