Posted on: 05th Sep, 2007 08:23 am
My interest only loan just switched to an ARM and increased it by $600.00. I can't afford this increase. How can I get the mortgage company to lower my payments. Will a hardship letter help? If it will ,what would be the appropriate reason other than I just don't make that kind of money?? I will lose my house if i can't resolve this issue.
I agree with Cedric. It would be much better if you try and refinance your mortgage. It is possible that you might be able to refinance with lower rate than what you have presently.
Did you have minimum payment option? If it had then now your loan balance might be more than what it was at the beginning called as negative amortization. And you could have problems refinancing if there is no equity in the house.
Hi Christopherjgettis,
A hardship letter is a piece of workout that the lender will require from you explaining your hardship and the reason for not making the payments. But the lender will not consider unless you fall behind on payment. If you do not default on the loan, he will not listen to you.
In the hardship letter, you have to provide legitimate reasons like you lost your employment, death in the family or any medical reasons for which you have failed to make the payments. Otherwise, your letter will not be accepted. The letter needs to convince the lender of your financial situation so that he can approve you for a loan modification or alternative repayment plan.
A hardship letter is a piece of workout that the lender will require from you explaining your hardship and the reason for not making the payments. But the lender will not consider unless you fall behind on payment. If you do not default on the loan, he will not listen to you.
In the hardship letter, you have to provide legitimate reasons like you lost your employment, death in the family or any medical reasons for which you have failed to make the payments. Otherwise, your letter will not be accepted. The letter needs to convince the lender of your financial situation so that he can approve you for a loan modification or alternative repayment plan.