Tips For Renegotiating Your Mortgage

Mortgage loans are secured loans, meaning the loan is backed with collateral. Many times a person will take out an Orlando mortgage loan so they can build or purchase a home. Mortgage payments are accompanied with regular interval repayment amounts. However, in today's economy it is not uncommon for a mortgage loan borrower to miss one of their repayments. When this occurs it is often best for the loan borrower to renegotiate their mortgage terms.

Whenever negotiating mortgage terms it is best to follow the tips listed below.

1. Always try to negotiate with a mortgage lender before a payment is missed. This allows the terms and conditions of the mortgage to be altered before the debtor enters into default on the loan. In most instances a bank will wait until 3 concurrent months have passed with no payment until they file a notice of default with the local county courthouse. So even if the debtor fails to negotiate the mortgage process before default has occurred, they do have a window period to contact their lender that lasts for about 3 months.


2. Once the debtor contacts the lender about negotiating their mortgage they should always be upfront and honest as to why they need to renegotiate their terms and conditions. Many times the lender will require proof that loss or decrease of income has occurred. When this occurs it is vital that the debtor proves their income is not enough to cover their mortgage payment and daily living expenses, such as food and utilities.


3. Never opt with bankruptcy or foreclosure on a mortgage loan until renegotiation has been sought. Filing bankruptcy or enduring a foreclosure seriously damages the debtor's credit history for a period of time that can last as long as 8 years.


4. Many times a renegotiation of mortgage terms simply means the debtor wants to move the day of the month the monthly repayment amount is due. Most institutions will agree over the phone to a change in terms that are as simple as changing the day of the month the loan payment is due.


5. Many mortgage lenders will work with the mortgage loan debtor to help decrease their principle amount owed, lower their interest rate, or even accept partial payments; this is of course assuming the debtor communicates with the lender that they need these mortgage modifications to be made.


6. There are several mortgage lenders who will grant new interest-free loans. These loans are based on the amount that a debtor must pay for their mortgage.


7. Even if a person finds that their current mortgage lender is not willing to negotiate, they can apply with other lending institutions, which often leads to a current lender agreeing to negotiate.