Tips on Negotiating Late Payments With Mortgage Lenders

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Many home owners often find themselves in a financial bind making the home loan difficult or hard to pay on time. This is a bad place to be for anyone because late mortgage payments will drop your credit score and cause you to have to pay late fees that can add up very quickly.

Negotiating Late Payments With Mortgage Lenders

The first thing that you as a home owner should do when you know your are facing financial problems is call your mortgage lender or whoever services your loan and workout a repayment plan or payment modification. The last thing your lender wants is your house back, most lenders will work out some sort of plan with you in order to keep your credit score safe and your home out of foreclosure.

What Should You Tell Them

Explain to the lender in detail what caused the circumstances you are now in and what if anything you are doing to work yourself out of the mess. You should also provide them with a time frame of how long you think it will take you to get back on your feet financially.

In a rare instance they may chose to do nothing for you but as long as you have been a good paying customer that is very rare. In most cases they will more then likely either adjust your payment for a period of time to allow you to catch up or even allow you to skip a payment or two.

However you must keep in mind that you still owe the money and it will be added to the term of the loan. So if you skip two months payments your loan will be two months longer in the end.

If they reduce your payment amount down they will generally want you to make it up within a years time by adding an extra amount to your payments after you get back in control.

If you are struggling as a direct result of an adjustable rate mortgage increasing the lender may offer you a fixed rate or give you an extended fixed rate period on the ARM. Changing the loan terms of a mortgage is referred to as a loan modification and is currently quite common.

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