August 25, 2019

What Type of Mortgages are Most Likely to be Modified?

prepare for mortgage modificationYour success at modifying your mortgage depends primarily on how much leverage you have in your negotiations with your lender.  If you can convince your lender that it has no realistic chance at recovering full payment from you, or that pursuing you for payment will be expensive and time consuming, you greatly improve your odds.

Banks and mortgage lending institutions are in business to make money.  If you miss payments or pay late, your banker will not be personally offended.  This does not mean that your lender will not employ psychology in its collection efforts.  Representatives from the bank or mortgage company will call you and attempt to make you feel guilty about not paying.  They will suggest that you have a moral and a financial obligation to pay your mortgage obligation.

No doubt you would like to pay your mortgage in full and on time.  However, if your financial circumstances do not allow for this, there is no shame in seeking a modification with your mortgage lender.   Always treat mortgage modification negotiations as business transactions – money, not morality is the only relevant issue.

How, then, do you gain leverage in your negotiations?   Here are some suggestions for a negotiation strategy: [Read more…]