Friday, March 17, 2017
How Can I Have My Mortgage Balance Reduced?
Many homeowners in the United States have recently discovered they owe much more on their home than the home’s value shows. This means the payments being made are more than need be, and as a result a large number of homeowners are making inflated mortgage loan payments. One option to remedy this problem is to ask your mortgage lender to modify the loan, so that you are paying more of a true value for the house rather than significantly over the value. But getting a mortgage loan modification is a complex process, and there are options within options to make.
Here are some tips and things to remember when you are working to have your mortgage balance reduced:
• Your lender may have the ability to rewrite their mortgage loan and give you a lower interest rate. The viability of many of the government programs in place to get this done is in question though, so it is crucial that you act fast.
• If a mortgage loan modification is not available to you, you can reduce the amount you owe by making half of your mortgage payment, every other week. The end result is that you will end up by years’ end making one extra payment and that will work to reduce what you owe.
• You can refinance with a new lender, who will pay off your existing loan and write a new one for you. This is advantageous if you are able to negotiate a lower interest rate with the new lender.
• If you have a lump sum available to you, you can pay that towards the principal balance and ask the lender to “reset” your mortgage terms to reflect the lower balance.
Most of these options require skillful negotiation, especially when federal regulations are in play. We are familiar with the rules required to modify mortgages and have experience working with lenders to get homeowners more manageable mortgage loan terms. If you are underwater on your house payment, call us for help. We will look at your particular situation and let you know what might work best for you, and make sure you understand the choices you are making. Our goal is to keep you in your house, at an affordable price.
For help with mortgage modification issues, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.