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Old 02-18-2009, 05:23 PM
 
3 posts, read 24,164 times
Reputation: 11

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I didn't elaborate on my situation thinking details weren't necessary.
for the payoff question. It was obviously misconstrued that I was in arears, having financial problems, and facing forclosure

I am not behind on any payments and been on time with payments
the entire time that I've had the house.

I will easily have the funds to pay it off in full and do some remodeling and needed updates after the sale of a 10 acre parcel of land and want to pay the house off and not have monthly payments at all.

I have no need to double up, or quadruple up, on the
payments. I just retired and getting all of my ducks in a row for my
retirement years.

I did an internet search for my question about my situation and several of the scam type sites mentioned they could negotiate a lower payoff but, being skeptical, I came to this forum to get honest answers from knowledgable, unbiased professionals on whether discounts on early mortgage payoffs are a common practice, or BS like the sites on the www
advertise. If negotiating a discount happens to be practiced, I think I would, and anybody would, be a fool not to ask when paying the house off.

jerry
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Old 02-18-2009, 06:10 PM
 
Location: Escondido, CA
1,504 posts, read 5,329,471 times
Reputation: 877
Quote:

I did an internet search for my question about my situation and several of the scam type sites mentioned they could negotiate a lower payoff but, being skeptical, I came to this forum to get honest answers from knowledgable, unbiased professionals on whether discounts on early mortgage payoffs are a common practice, or BS like the sites on the www advertise. If negotiating a discount happens to be practiced, I think I would, and anybody would, be a fool not to ask when paying the house off.
Like I said. Negotiating a lower payoff is possible in some situations, but it's only likely to happen if the house is worth less than the amount owed on the mortgage. Your bank is a heartless cold machine that exists to make money, it generally tries to make decisions that maximize its profit. If you owe more than the collateral is worth, you have a reasonable chance of convincing the bank that reducing payoff is in their interest, by threatening foreclosure. If you owe less than the value of the house, the bank has no interest in dealing with you.
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Old 02-18-2009, 06:26 PM
 
28,383 posts, read 67,903,744 times
Reputation: 18189
I don't know about the "heartless machine" aspect of things, but basically any site that says they can "renegotiate any mortgage on your behalf" is full of something that rhymes with spit ...

There really and truly are policies at pretty much every lender to try and modify mortgages for those who are can't afford to pay their mortgage. The lenders have been too slow to "scale up" this part of their operation but they do realize it makes more sense to lower the rate a bit and/or extend the terms so that the monthly payment matches what folks can pay. Makes more sense than letting the place go to foreclosure and taking a much bigger loss.

So to do most credit card companies prefer to reset the terms of payment of certain classes of debtors that owe them a big pile of cash, much of which is penalties and outrageous interest.

Neither of these situations apply to guys like Jerry -- and if lenders let guys like Jerry out from the terms of their mortgage contract they really could not survive.

If you have the funds to pay off your mortgage early the bank will appreciate it, but not so much that they can afford to show anything more than a nice letter thanking for your business and offering to work with you for future borrowing needs. Afterall, by paying off early you are SAVINGS yourself all the interest you would otherwise pay, and that foregone interest is lost income to the bank...
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Old 02-18-2009, 08:44 PM
 
Location: Apple Valley Calif
7,475 posts, read 19,561,668 times
Reputation: 5575
AMORTIZATION TABLE
Here is something to play with. Plug in different numbers and see what different options you have...
You can see how much interest you will save over 15 years by paying it off if you can afford to...
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Old 02-18-2009, 09:19 PM
 
Location: Cary NC
553 posts, read 2,081,437 times
Reputation: 303
I am a mortgage broker (FYI)

I think it stinks that so many people have been responsible in paying their bills and mortgages on time only to see those who don't getting help. I am thinking these questions came about because you heard or are hearing about people modifying their mortgages and in some cases (rare) the lender reducing the amount owed for people who acted irresponsibly. Unfortunately if you are paying your bills on time they will not help you. They have no motivation to. If you are not paying your bills on time they still may not help you...much. Here is the reason people who made bad decisions are getting these nice breaks from lenders: They hire an attorney that specializes in loan modifications. The atty reviews the loan file for TILA (truth in lending act) violations. If they find RESPA or TILA violations they include them in a letter along with a hardship letter from the borrower, bank statements, tax returns etc.. and basically blackmail (I am sure there is some nifty legal term for legally blackmailing) the lender into providing favorable terms for their client....or else. These viloations can and usually will be more expensive for the lender than modifying the loan terms. This is why people who hire an atty vs. doing it themselves usually get a better result.

In your case...No way sorry to say. Good luck
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