U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 1.5 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Jump to a detailed profile or search
site with Google Custom Search

Search Forums  (Advanced)
Business Search - 14 Million verified businesses
Search for:  near: 
Reply Start New Thread
 
Old 02-15-2009, 03:38 PM
 
3 posts, read 12,453 times
Reputation: 11

Advertisements

I owe about 40k on my home mortgage with about 15 years
left on a 30 year.

I have heard about people with credit card debt paying their balance off
in full and negotiating a payoff amount less than they actually owe.

Is it possible to negotiate and lower payoff amount, ie 35k, or whatever
is feasible, on a 40k mortgage payoff.

If so, what ballpark % off the 40k would a morgtage company might be willing to negotiate?

Thanks ahead,
jerry
Reply With Quote Quick reply to this message

 
Old 02-16-2009, 12:08 PM
 
Location: Castle Hills
1,054 posts, read 1,587,040 times
Reputation: 526
I seriously do not believe they would be willing to negotiate that. It would be worth the phone call during these trying times though. I think 5k under would be a good amount to propose to them.
Reply With Quote Quick reply to this message
 
Old 02-16-2009, 01:01 PM
 
680 posts, read 1,741,843 times
Reputation: 321
Quote:
Originally Posted by jerry1945 View Post
I owe about 40k on my home mortgage with about 15 years
left on a 30 year.

I have heard about people with credit card debt paying their balance off
in full and negotiating a payoff amount less than they actually owe.

Is it possible to negotiate and lower payoff amount, ie 35k, or whatever
is feasible, on a 40k mortgage payoff.

If so, what ballpark % off the 40k would a morgtage company might be willing to negotiate?

Thanks ahead,
jerry
People are negotiating payoff amounts for less than they owe because they are unable to make their payments. If you have been making your house payments on time for 15 years and still have the ability to do so, why risk ruining your credit by asking for a lower payoff on it?

Unless the house is a real dump, or in Detroit, you should be able to sell it if you can't make the payments and save your credit.


altus2006
Reply With Quote Quick reply to this message
 
Old 02-16-2009, 01:11 PM
 
21,730 posts, read 37,212,462 times
Reputation: 10719
There are fundamental difference in paying off a SECURED debt for the value of the principle that secured that debt VS renegotiating the payoff on a revolving line of credit that the lender has already 'earned' some premiums on from the merchant, the card holder, and various third parties /marketers.

I think you would be laughed off the phone if you tried to weasel out of secured mortgage on all but a highly distressed property that was within a few months of payoff...
Reply With Quote Quick reply to this message
 
Old 02-16-2009, 09:02 PM
 
Location: Apple Valley Calif
7,405 posts, read 11,989,590 times
Reputation: 5143
No mortgage company is going to negotiate with you in your situation, for that amount....
If you owe $40k and have 15 years left to pay, your payments must be extremely low. If it were me, I would quadruple the payments and get it paid off in a few years. That will save you more than trying to chisel the bank out of $5 k...!
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 07:54 AM
 
3 posts, read 12,453 times
Reputation: 11
Default Thanks All, just one more question

Thanks for the advice and opinions on whether negotiating the pay amount off of a home is feasable

One more question, just for curiosity for someone not savvy
to the mortgage loan industry.
Are the terms "weasel" and "chisler" considered very derogatory terms in the mortgage loan world as they are in the rest of the world?

Just a couple of definitions online,
Weasel Out - To back out of a situation or commitment in a sneaky or cowardly manner
Chisler - Cheat, Scammer

Thanks again,
Jerry
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 09:54 AM
 
680 posts, read 1,741,843 times
Reputation: 321
Quote:
Originally Posted by jerry1945 View Post
Thanks for the advice and opinions on whether negotiating the pay amount off of a home is feasable

One more question, just for curiosity for someone not savvy
to the mortgage loan industry.
Are the terms "weasel" and "chisler" considered very derogatory terms in the mortgage loan world as they are in the rest of the world?

Just a couple of definitions online,
Weasel Out - To back out of a situation or commitment in a sneaky or cowardly manner
Chisler - Cheat, Scammer

Thanks again,
Jerry
Yes.

altus2006
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 11:52 AM
 
21,730 posts, read 37,212,462 times
Reputation: 10719
Jerry:

I have personally seen lenders work to reduce rates on ARMs and restructure the length of loans to accommodate borrowers with medical conditions / loss of work. They do this because it is good business.

If they willy-nilly decided to accept less than is owned on a loan they would have no business and contracts would be meaningless.
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 12:31 PM
 
Location: Apple Valley Calif
7,405 posts, read 11,989,590 times
Reputation: 5143
Chisel to me means trying everything in your power to get the bank to lower the rates, or cut the principal. Not likely they would do that under any circumstances with a $40k loan. They aren't interested in a tiny loan.
You were more concerned with the verbage than the advice..! If you were the best debater in the world, you could save at most, what $5 k, using your figure..?
Take my advice and instead of making $200 a month payments, make $1000 a mont payments and pay the damned thing off..! The interest you will save will far surpass the $5k you're hoping for...
Reply With Quote Quick reply to this message
 
Old 02-18-2009, 04:12 PM
 
Location: Escondido, CA
1,504 posts, read 3,714,545 times
Reputation: 816
Remember that your mortgage is secured by your house. If your house is worth more than 40K, you have no hand. They could take your house, sell it at a foreclosure auction, and take 40K + whatever legal fees they incur. There is no reason for the lender to let you get away for less than the amount owed.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $84,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages

All times are GMT -6.

2005-2014, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25 - Top