Mortgage Renegotiation

[sugarpop]

Originally Posted by Tiki

Part of me wishes I could renegotiate, but I've been far too responsible and taken far too few risks so even though each month I barely scrape by (just sent my mortgage payment this morning with only five days to spare!) I doubt I could qualify for a restructure, and frankly with only 14 years left at 5.5% I'm not sure it wouldn't put me in a worse position if I did.

So I just have to hope I can keep scraping up that mortgage payment every month for 14 more years.

I think you would be surprised. If you're paying more than 1/3 of your income, you might qualify for one of the programs. You may not be able to get that 2% deal, but most lenders are willing to work with people right now who are struggling, even if they HAVE been making payments on time. Check out these links: http://www.financialstability.gov/ma...nance_yes.html
http://www.treas.gov/news/index1.html
http://www.treas.gov/press/releases/...es_summary.pdf
http://www.treas.gov/press/releases/...guidelines.pdf

I know someone who is in the process of getting refinanced. She didn't have an ARM and when she got the loan she could afford it. Since then, her husand passed away so she no longer has his income, and she had a heart attack, so she can no longer work. She tried to get refinancing last summer and they said no, and she had her house on the market for over a year trying to get into something smaller. She doesn't really owe that much anymore, but the payments are high and since her situation has changed so drastically, she really does need the help, or she could end up losing her home.

I would say call anyway and see what they say. It can't hurt. Lenders are more open to helping people right now, because they almost have to be.