Posted on: 13th Dec, 2009 08:23 am
I have a question - will a lender accept less than what is owed on a mortgage and possibly allow homeowner to repay the difference over time? I am considering putting this idea on the table to my current lender as we are not living in the house and exhausted all efforts in an attempt to sell the home. The lender will still get their money and we can move on.
Hi jennyjewel,
I doubt if your lender will accept any such offer from you. However, you should talk to the lender and negotiate with them. In case the lender thinks there is little chance of recovering the mortgage in full, he may agree to accept a short payoff and let you repay the difference over time. You can also go for a deed in lieu of foreclosure if you cannot sell off the property or if the lender does not accept a short payoff.
I doubt if your lender will accept any such offer from you. However, you should talk to the lender and negotiate with them. In case the lender thinks there is little chance of recovering the mortgage in full, he may agree to accept a short payoff and let you repay the difference over time. You can also go for a deed in lieu of foreclosure if you cannot sell off the property or if the lender does not accept a short payoff.
as a first step, write a good hardship letter & handover it to your mortgage lender. ask for ded in lieu. if they do not agree for it ask for short sale or suggest your method
Thank you for responding. I am working on writing a good hardship letter!
your offer is better than what most lenders are getting these days. i don't think it's a bad idea for them to accept it in whatever way, shape or form they can. their alternative? get even less when all is said and done.
