On my mortgage I want to negotiate a lower payment but I was wondering if I should stop making payments first.

Question

My mortgage payments are a little high and I want to negotiate it down. I heard of a lot of people doing it but I don't know if I should stop making payments first so that the bank will take me seriously. I been making payments but currently I'm not able to do them on time. I talk with costumer service and they told me that was not possible, do I need to talk with somebody else? I'm going through one foreclosure already,

Answer 1

you'll ruin your credit rating first and defeat the purpose-banks have no reason to agree to that - if you're already going thru another foreclosure, your credit is probably already messed up, so the bank is not going to give up more money-get a housemate

Answer 2

You have to try to refinance your home to lower your payment. Why would a lender think you are serious if you stop paying them again? To show, yes, I am irresponsible?! Please lower my payment! I know my credit score just suffered, but I was trying to make a point that I can't pay this but I deserve a lower rate?!

Answer 3

I dont think you really can do anything other than refinance, as you know if you stop making payments they dont care they will just forclose on you. I dont really think there is anything you can do.

Answer 4

Stop making payments and you'll not only damage your credit but it makes you look like you are in serious financial trouble and they will have even LESS incentive to work with you.

I wonder where people get these nutty ideas.

Banks RARELY re-negotiate payments b/c refinancing is HOW THEY MAKE MONEY.

Answer 5

Do NOT do what you are considering.  Lenders will take you FAR more seriously if you continue with payments and approach them with issues of financial difficulty.  It shows a desire to handle your obligations.

Don't work with customer service.  They are only there to tell you your obligations.  Ask for the loss mitigation department for your lender.  Those folks are authorized to make the decisions necessary to help you out.  They're not going to be happy that you cannot make payments as agreed, but they would much prefer to work with you on some sort of payment reduction than face a foreclosure, which costs them huge money.

Answer 6

go to your mortgage company ask the if you can do a rate an term if you have a hard time look for someone that does FHA loans in your area and call them Dont stop making payments it will only hurt you

Answer 7

When my husband (now "ex") and I were selling our first home, and the papers were being negotiated for the sale, the bank rep told us to stop making mortgage payments.  That rep was so wrong!  We got notices left and right that we were late, overdue, 90 days past due... it was a nightmare. It ruined our credit.  

If you want to get into a better position to negotiate, you have to have excellent credit.  The system works exactly opposite of what most people think:  if you have enough money to pay 100% of the bill for a new item, you can get 100% financing at the drop of a hat.  If you are broke but try to get a loan, you won't get it unless they tag on heavy interest rates.  You can only get a great loan if you can already pay for the item out of pocket.  Stupid, in some ways, but safe in another.

Banks are really being hit hard right now with the problems that they caused on their own. They had people take out loans who could not pay them - and the bank reps encouraged those same people to fake their income in order to get even higher loans than what they could afford to pay. They are (hopefully) very skittish right now, and are going to be more careful to follow the policy every bank should have when it comes to loaning money: only loan out what you KNOW can be paid back.  Anything less is a losing proposition for a place that is supposed to know how to make money from investing that money.  Anyone who misses payments will NOT be someone they will take seriously. You'll be lucky if they only laugh and say "No" when you greet their collections attempts with, "Oh, I stopped making payments because I didn't like the terms".  You signed a contract, and you have to adhere to what it says or you will be in breach of contract and they can sue you after they ruin your credit rating.  Not a happy prospect.  

So, make your payments on time every time.  Pay extra and ask them to apply it to the principle.  Once you've done this for six months, then call and ask to renegotiate your mortgage.  All they can do is say no, but at least your credit will be a lot healthier than average when you do make your request.

Answer 8

If you stop making payments you only jeapardize your credit rating which allows lenders to RAISE your interest.  And if you stop payment after 90 days you could get foreclosed and then your life really goes downhill.

If your payments are too high but you could pay a lower rate, the best option is to refinance.  Talk with your bank about that.