How can I negotiate a loan modification with my lender what tips or tricks can I use.?

BDZ: How can I negotiate a loan modification with my lender what tips or tricks can I use.?
I have an ARM. I cannot refinance. How can I go about negotiating a loan modification with my lender. I don’t want to be just a name and account number. I can meet the existing payments and to date have not fallen behind. If they raise the interest rate any further then that will be the tipping point. Are there organizations out there to help me such as HUD, etc. Do I already have to be in default before they’ll consider a loan modification?

Answers and Views:

Answer by Gregg
The truth is that they won’t do anything until you get behind. You will have to miss payments before they will even talk to you. Seems stupid but that’s the way it is. You can write a hardship letter explaining why you cannot pay but you would have to have a good reason, usually medical reasons work well.

If you can pay, I suggest you do and sell it as fast as you can before your payment gets unmanageable.

Answer by workreallybites
They cant change the terms of your loan without refinancing. They have already sold your loan. No bank is rich enough to use their own money. They just collect payments.

They would have the ablility to do a 1 time deferment of payments. Say you were going to go 2 down, say I need you to defer this months payment, and the next 2 or 3. That way you wont be late and have 2-4 months without a payment. They could put them as a ballon at the end of your 15 or 30 years. For them to consider you would have to be perfect in your payments and do it before you go late. If the person says no we dont do that, keep calling. Every bank has a deferment department. You can call 10 times and get 9 no’s you just need 1 to say yes.

The issue is, your payment will adjust according to the market. Your loan is probably owned by a foreign government or a hedge fund. They cant change the Note, even if they wanted too. It will adjust according to the note, and the bank cant do anything to help you, other then to refinance it.

HUD is working on something, but you have to understand this isnt HUDS problem. They didnt insure your loan. All they could do is refinance it as well. They are working on it, but dont expect it to be anytime soon. They are trying to make it soon but its the government. They are trying to set it up so FHA could refinance these loans. They are already in talks to do this. Everybody is hoping sooner then later. Here is an article that explains what HUD and the Government are working on doing. You will just have to hang on as long as you can.

Try for the Deferment if you can, they would rather have you do that then foreclose. But as I said they wont, and cant modify your note or terms.

Good Luck, read this article

https://www.washingtonpost.com/wp-dyn/content/article/2007/08/22/AR2007082202655.html?nav=rss_business