HOW TO RENEGOTIATE MORTGAGE IN BANKRUPTCY

The first thing to remember when you’re trying to renegotiate your mortgage is that you’re bargaining power is somewhat decreased.  If you have missed payments or in some way are in default on your mortgage it helps to be able to explain exactly why you have been late or are in default.  Good reasons include medical bills, increased adjustable interest rate, paying two mortgages, or being transferred to another location for your job.  If you’re paying two mortgages that may get the lender’s attention, because many people were in foreclosure these days have the same situation.  That is part of a risk profile that lenders are now looking for to deny current applicants who wish to purchase homes a mortgage.

 

Of course it’s not your fault, if you were transferred through no fault of your own to another job.  However, the fact you’ll be paying two mortgages definitely increases your risk of default on your previous primary residence.  With all of this said, speak to the loss mitigation division the bank.  That is currently holding your mortgage.  The other ones who can deal with you directly and find a solution.  They are actually a different options that you have when you are in default.  You can find out on my blog as well.

 

I’ll write more on renegotiating your mortgage early next week.  We negotiate in your mortgage when you’re in bankruptcy is especially tough, but it can be done.  Speaking with you a bankruptcy trustee will be critical to renegotiating your mortgage.  Of course, I’m sure you know that you don’t need a lawyer to file bankruptcy.  And if you don’t have money to pay mortgage.  Then you definitely don’t have money to pay a lawyer.

I’ll write more next week after a researching give you an update.  God bless