Posted on: 12th May, 2009 09:28 am
I reaffirmed my mortgage when I filed chapter 7 in November 2008. My 3/1 ARM was supposed to readjust from 6.5% to 3.5% in February 2009. When I got my current bill last week, it is reflecting 6.5%. I called the bank and they told me that when I signed the reaffirmation, I "locked into" the 6.5%, which was the current rate at the time. I will be losing my job in June and can't afford 6.5%. Is there anything I can do?
Hi deniseharrington,
As you have locked the rate at 6.5%, then you will have to start paying the dues according to that rate. You can always negotiate with your lender to check if he can change the rate.
You can even try refinancing the mortgage to lower the rates. However, you will have to pay the closing costs for that. Moreover, the lender would check your credit score and income for this.
As you have locked the rate at 6.5%, then you will have to start paying the dues according to that rate. You can always negotiate with your lender to check if he can change the rate.
You can even try refinancing the mortgage to lower the rates. However, you will have to pay the closing costs for that. Moreover, the lender would check your credit score and income for this.