Q&A: How do I get my mortgage company to forgive a portion of my loan and lower my interest rate?

Posted on Oct 9, 2012 in FHA Information

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Tall Apartment Developing

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no income home loan
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Question by Shawna Ryder: Im on top of the world right now! Do you think i will qualify for low income home loan?We really need it…?
I just went down to casa de la sol realty and did all the paper work and every thing for the low income home loan.She said we were the we’re the perfect applicants we have 710 and 695 credit score, rx no credit cards, stuff we own all are cars/dirt bike/street bikes/trucks, site and we don’t pay rent. bills come to $ 470 a month that’s cell phones/utility bill/car insurance and a $ 1,000 personal loan (payed down to $ 800) .We make $ 35,000 – $ 40,000 a year.How much do you think the bank will give us if any thing at all? We found a house for $ 140,000 we love!!! Think we even have a chance or are we just dreaming….
they said we don’t have to put money down and the payments will be $ 300 or under.

Best answer:

Answer by Huntsman
In my world – a mortgage should never be more than 2 times your annual income.
More lose standards are 3 times your income.
Max loan you’ll get is $ 105,000. That means a 35K down payment
And this will not allow you to save for the future, things such as retirement and kids college. And cars for cash will be a thing of the past. You won’t be able to save for them – you’ll have to finance them

What do you think? Answer below!
Question by USA U: Obama Mortgage refinance program, information pills eligibility tool?
I applied for refinancing with Obama’s plan back in March 2009. The financier, keeps telling me that the “TOOL” (system) used for “eligibility” is NOT up and running yet, and he cannot submit my file?

He keeps saying he will submit it when it is? Does anyone know of problems with this system holding up refi’s?

Or am I just getting the RUNAROUND?

Best answer:

Answer by Ryan M
Getting the run around.

What do you think? Answer below!
Question by Bella B: How do I get my mortgage company to forgive a portion of my loan and lower my interest rate?
My mortgage broker at the time convinced me not to use my VA loan or FHA!!! The property is located in Detroit, this MI. I purchased home in 2001 for $ 120K and it appraised for $ 145K…Today it appraises for $ 60K!!! Been trying to sell for 1-yr, information pills along with nine of my neighbors..asking price $ 75k….I lost my job with automotive industry and have since relocated for new job in D.C. where cost of living is 4X that of Detroit!! I cannot purchase home in new area due to income tied up in property. Keeping property is costing me 2700 a month!! I want to just tell mortgage company to take it. It’s my only bill and it’s consumes 1/2 monthly salary. HELP!!!

Best answer:

Answer by Etta P
Call your mortgage company. Talk to the loss mitigation department and advise them you can’t afford the home and you want to do a “deed in lieu of foreclosure”. This will adversely effect your credit score for many years, order and perhaps interfere with buying a new house. FHA and VA would be no different, all lenders will report it to the bureaus.
Is it possible to rent it? Try to hang in there until the market rebounds? Just food for thought, good luck!

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3 Comments

  1. The lender won’t “forgive” a portion of your loan, but you can ask for a rate modification.

  2. Unless you have a fixed-rate mortgage, the current mortgage interest rates are very important to deciding how much you should pay every monthcompanies offer different interest rates so it is a good idea to shop around for the best deal before settling on one particular lender.

  3. I am a Bankruptcy Attorney in Detroit. You can File Chapter 7 or 13 depending on your income and get rid of the property. If you still want to keep it then file Chapter 13 and modify the loan or cram it down. You can do that as long as the house is not your residence. You file Bankruptcy where you have live for 180 days or more.
    Good Luck.
    Paul Stoychoff