If you have a hard time meeting your monthly mortgage payments, it will be possible for you to find ways to lessen them. Of course, the lending institution must agree to the proposal, so there will be some negotiation involved. The best part? These can be done without the need to refinance your loan!
What you will be asking for is a complete restructuring of your loan. The reason why lending institutions usually agree to do this is because there are less documents and red tape involved this way. However, not everybody can qualify to have their loan restructured.
First, you need to prepare documents to show that you are having a difficult time meeting your monthly payments. The lender needs legitimate reason to be able to alter your account. Reasons that mean you qualify for help are losing your job, getting a serious illness, or having a serious accident leading to injury and disability. These are proven with financial statements like bills, banking statements, unemployment compensation, and paycheck stubs.
Second, take immediate steps to get your mortgage payment lowered. Despite the advent of computerization, it still takes a long time to process a request, get approval, and complete the paperwork. The earlier you inform the lending institution, the sooner you can lower your payments without running into the danger of not being able to meet mortgage payments and the threat of foreclosure.
A loan modification may be possible, especially if the interest rates are going down when you request it. When this happens, lenders reduce the interest rate on the principal or they can also opt to extend the term of the loan, which will also lower the monthly payments but might lead to an increase in the interest rate.
Remember, every lending institution varies so negotiations are in order. With the proper documentation, you may be able to reach a compromise.