What is the best way to get a mortgage loan be modified?

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I’m hardly in a position to the minimum payment (negative amortization loans, I zahlenein) My credit is bad. Esbesser is trying to get a change when you start to make more money? My property is worth less than what I am guilty.

7 Comments
  1. Reply
    David S
    January 24, 2011 at 4:43 am

    Talk to your lender. With all of the mortgage problems in the nation, lenders are under pressure to fend off defaults. They may be willing to amend your mortgage rather than suffer another default.

  2. Reply
    mccray_51
    January 24, 2011 at 5:17 am

    Go through a local mortgage broker and see if they can qualify you for a FHA Secure loan.

    I think the only qualifying credit used in the approval decision is your mortgage history. And from what I heard they are allowing some recent late history.

    Best of luck

  3. Reply
    Single Dad
    January 24, 2011 at 5:35 am

    To amortize is to liquidate a debt by paying installments or paying into a fund. What they may be talking about is some sort of bi-weekly payment. Bi-weekly payments will reduce the interest that you pay in the long run and will shorten the term of the loan. Most places charge a fee to set up bi-weekly payments and then charge you a monthly fee to have the payments withdrawn from you account. If you can make two extra payments a year it will do the same thing. Once again, I am not sure if that is the answer to your question.

  4. Reply
    Cabana C
    January 24, 2011 at 6:14 am

    Negative amortization arises when the mortgage payment is smaller than the interest due and that causes your loan balance to increase rather than decrease.

    Your mortgage payment has two parts: an interest payment covering the interest due for that month, and a principal payment. The principal payment reduces the loan balance and is called “amortization.”

    For example, the monthly mortgage payment on a 30-year fixed-rate loan of $ 100,000 at 6% is about $ 600. In the first month, the interest due the lender is $ 500, leaving $ 100 for amortization. The balance at the end of month one would be $ 99,900.

    The $ 600 payment is a “fully amortizing” payment. If you continue to pay that amount every month during the period remaining to term and the interest rate does not change, the loan will be paid off at term.

    A $ 550 payment would be partially amortizing, leaving a balance at the end of the loan’s term. A $ 500 payment would just cover the interest – there would be no amortization.

    If your payment is only $ 400, it would fall short of the interest due by $ 100 and the loan balance would rise to $ 100,100. In effect, the lender makes an additional loan of $ 100, which is added to the amount you already owe. This rise in the loan balance is called negative amortization.

    Negative amortization can only arise on ARMs with one or more of the following features:

    The initial payment does not cover the interest due, as in the example. The purpose of such a feature is to increase affordability.

    The interest rate adjusts more frequently than the monthly payment. The purpose of this feature is to avoid frequent changes in your monthly payment.

    Changes in the monthly payment are capped, usually at 7.5%. The purpose is to avoid large changes in the payment.
    But these borrower-friendly features have a downside. If interest rates rise persistently, the equity in your house will decline rather than rise unless the negative amortization is offset by house appreciation. In addition, negative amortization must be repaid, which means that your payment is going to rise in the future. The larger the negative amortization, the greater will be the increase in the future payments that will be required to amortize the loan in full.

    Accelerated amortization: An amortization method that provides for a higher amortization expense in earlier years and lower charges in later years on the basis that the asset offers a greater benefit in its earlier years.

  5. Reply
    sunshine_today
    January 24, 2011 at 7:06 am

    Negative amoritization loans are easier to qualify for if you are not quite meeting income ratios. However, they are really bad loans to take because the “negative” means that your monthly payment made toward mortgage isn’t even paying the full interest amount due on that loan payment. The part you didn’t pay is the “negative” and it gets added to the principal balance of the loan. You loan amounts gets bigger each month, not smaller. It’s great for the bank because you’ll never pay it off and your debt just keeps getting bigger.

    Negative amortization loans are considered predatory loans a lot of the time, but some people do use them in short term deals for business or residential and as long as they know what they are getting, it’s a way to qualify for a bigger loan because the monthly payment is artificially low because you aren’t making a full payment. This type of loan might be the only loan some people qualify for but those people need to be very wary and refinance as soon as possible. Some sleazy banks and mortgage brokers will stick unsusspecting borrowers with this kind of loan, with a disclosure statement that an unsophophisticated person probably wouldn’t understand. They’ll never tell those borrowers “hey, this is a sucky loan, do you want it?”

  6. Reply
    nanu569
    January 24, 2011 at 7:53 am

    when people are talking about negative amorittization loans they are talking about option arms. An otion arm is a loan with 4 payment options per month; minimum, interest only, 30 year, and 15 year. They calculate the interest rate by adding the index which is fixed to the margin which adjusts. the minimum payment works like a minimum payment on a credit card not only do you not pay into principle but you dont pay all of the monthly interest so the unpaid interest gets placed at the back of the loan so the balence of your mortgage will increase thus the term negative amorttization.

    I would not suggest going into a loan like this they have a spicific purpose. I am a loan officer so if you have any questions or concerns please do not hesitate to contact me my email address is nanu569@yahoo.com. when you contact me i will give you my other contact info i just dont like giving it out over yahoo.

  7. Reply
    jlcaooscl
    January 24, 2011 at 8:27 am

    It means your payment is not enough to pay all the interest, so you pay a part and the rest is ADDED to your balance, so it GROWS, instead of being reduced.

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