Can I negotiate with my lender? (loan, interest rate, real estate, foreclosures)

[VRougeway]

I am behind on my mortgage payment and I want to negotiate a loan modification agreement with my lender. But I don't think that my lender is willing to cooperate. Who can help me?

[ShanetheMortgageMan]

Your mortgage lender is going to have to cooperate to give you a loan modification, no one can force them to do so. Why don't you think your lender is willing to cooperate?

[Loss Mitigation Expert]

In case your lender is hard to convince, consult a company that specializes in this kind of loss mitigation procedure and hire their services. Make sure that the company has enough success experience to deal with the kind of lender you have.

[brokerdave]

its amazing how many experts have appeared out of thin air.

[NJ987654]

I agree. "EXPERTS" are everywhere!

Start by calling the company yourself. Ask for their loan mitigation department and discuss it with them first. May not get you anywhere but remember, mrotgage companies don't need any more foreclosures right now. At the same time, don't expect a huge handout... they will do things like tacking the lates onto the end of the mortgage to help you get caught up.

[renriq02]

the problem is that everyone who talks to me about doing a loan mod is always telling me that the Lender said NO WAY!

it's a shame that you would need to hire a company/attorney to do this for you.

[SmartMoney]

Agreed......you should be able to do this yourself. It takes persistence and documentation. If you have to hire someone, don't sign on with someone that offers themselves to you to negotiate a modification. Anyone worthwhile is someone you will find - not the other way around.

You have a bulls-eye on your back now. Disregard any direct messages and or emails. If you need to seek someone out, call local real estate attorneys or real estate agents. but again, stay away from someone that sells themselves.

[chet everett]

While I have no problem with most of the advice above, and I do think that SOME lenders may respond better to "agents" or attorneys than they might with an emotional borrower, THERE ARE NO GUARANTEES out here!

I suspect there MAY be some regulations coming down the pike, but it will probably "after the damage" for too many people.

The basic problem is that, as others have said, only a handful of lenders have set-up a formal "call center" to deal with this problem. Even among those lenders there is very little detail freely available about what sorts of modifications are being allowed.

Common sense is in very short supply right now. If you are CURRENT on even a very high interest rate mortgage or are VERY upside down on amount owned vs true market value the lender has no incentive to rewrite your loan. IF you have decent credit they MIGHT offer you a new loan with a better rates, but even that is not a slam dunk.

The lender has MUCH more to motivate them to at least renegotiate your rate, and possibly your term, if you are late and/or behind in your payments. The lender is technically losing money, as their books are going to have to reflect the long term effect of REDUCED interest payments, but the IMMEDIATE effect is to help heal the red ink...

Toughest thing is for a lender to redo the amount borrowed -- from an accounting standpoint you have to realize this has a VERY negative effect on the ASSETS that the lender their books, and they are going to be extremely reluctant to do that unless they are quite sure that the only alternative is to foreclose and get MUCH less...

Good Luck!

[rcarrillo]

Lots of good advice. There are too many "experts", amazingly most of them learned the mortgage biz by selling stated income, negative amortization or sub-prime ARMs the last few years. So the same people that got us in this mess are going to "save" us.

Its amazing... they jumped into the mortgage business with little education and experience because of the lack of regulation and easy money. Now they jump to the loan modification business the same way for the same reasons.

First, try it yourself. If you find its too hard, too complicated or too time consuming... look for a reputable person that has a track record of education, experience and integrity. Interview them as you would a potential attorney, doctor or financial advisor.

Also... make sure that you do not pay anything upfront. Loan modifications should (but only a few states have rules mandating this right now) be a fee for service business. If they do not deliver an acceptable modifcation, there should be no cost. Also make sure all fees are agreed upon in writing upfront. So you know what to expect and what it will cost... and only pay if the service is performed.

Much like with credit repair, there are too many companies offering to help... most will just take $500-5000 from you and never deliver.

[joesmiley]

This is a legit company in Las Vegas doing these modifications. LasVegasLoanMods.com They also offer a money back guarantee if they can't get the loan modified.