10 Tips to Renegotiate Your Mortgage

It is important that you be well informed when you go to have your mortgage renegotiated. You have to be ready and well informed and keep up your optimism as you proceed with them. To accomplish this you must understand the technical terms, so you can intelligently discuss them with your prospective lender.
The current mortgage market is in a state of unrest and there are starting to be very significant savings available if you know the proper procedures. Even with the uncertainty of the banks even surviving, it is even more important to be ready to deal with the bank as also they want to get back on their own capital, instead of the governments capital. This can result in a substantial reduction of your monthly payments, of course depending on your current interest rate and type of mortgage.
Here are your tips for when you go to the bank:
1. Do not delay in going to the bank (or banks). Accept the fact that you are in trouble. It is NOT a crime to be behind on your payments, but it would be better to get a modification before you miss any payments.
2. Definitely contact the bank before you get a "Notice of Default" filed in your county courthouse. This is usually after you have missed 3 months payments, but may be different in some states.
3. Explain your reasons why you can no longer meet your payments. Explain why you have less income (most time this is a loss of job). Also prove to them what your necessary monthly payments are. This can be done with copies of bills from previous months. These should include grocery costs, utility costs, car payments (need that if you can get a job), fuel bills, basically anything that is necessary for your family to exist.
4. Remember, the bank does not want to foreclose on you and should work with you. This makes being totally honest work in your favor.
5. Remember, foreclosure or bankruptcy destroys your credit history and leaves very few options to obtain a new mortgage in the next few years. This information can stay on your credit report for up to 8 years.
6. The banks have been overcharging their customers for most of their mortgages and are probably more than willing to better your terms and interest rates.
7. The lender could accept partial payments until you get caught up, if you have the income to support it. It will cost the bank more to foreclose than it will to allow you to catch up with your payments.
8. The lender may be able to take any past due payments and add them to your new balance to give you a head start. They can reduce the interest rate. A 30 year mortgage at 4 1/2% your mortgage payment will cost you about $507 per month per $100,000 borrowed. At 5 1/2% the cost is about $568 per month. This figure does not include your escrow payment for real estate taxes and home owners insurance.
9. The lender can also move the date of the payment to a better time of the month for you.
10. If your present bank is not willing to adjust your mortgage for you, you can try applying at other banks or use online services where you can get up to four banks quoting for your mortgage. This does not cost anything and might even be a bargaining tool for when you talk with your bank.