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Sandra Said:

Will your own mortgage company work with you by giving a fix rate even if your home is worth less?

We Answered:

Call your mortgage lender and let them know you are going shopping for a fixed rate and you are checking with them first. If you have made payments on time in the past, the mortgage company will work with you. Heard on Suzie Orman Show that to increase your odds of qualifying make sure your credit cards have zero balances.

Max Said:

What does it mean to when you do a loan modification thru your mortgage company?

We Answered:

Usually a loan modification means they are going to change the term of your loan. I.e. interest rate, term of payment.

This is because your bank is afraid that if the interest rate keeps moving against you, you'll default on the loan and they will have to foreclosure against you.

Who's your lender?

bob

Barry Said:

What happens if you tell your mortgage company that you are planning on filing bankruptcy?

We Answered:

Probably nothing.

The reason the lady asked whether or not he has filed already is because lenders are required to follow different rules when dealing with mortgages where the borrower is currently in bankruptcy. For this reason, most mortgage lenders have a separate bankruptcy department that services mortgages of borrowers who are in bankruptcy. The person with whom your husband spoke probably was just trying to determine whether your mortgage needed to be moved into the bankruptcy division or not.

Many debtors "say" they are "going to" file bankruptcy ... and then maybe they do and maybe they don't. Or maybe they don't file for many more weeks or months (or years).

For the most part, lenders don't really care what borrowers "say" about their intentions to file bankruptcy. Once the lender gets the bankruptcy paperwork from the court, then it follows its own internal procedures for handling debtors who are in bankruptcy.

I wouldn't worry about it.

Amber Said:

Do you have to tell your mortgage company if you let out your house?

We Answered:

You need to tell them and your insurance company as well. If your mortgage said anything about "owner occupied" (it most likely does) you are guilty of mortgage fraud if you leave without telling them.

The same goes for insurance, if ti states you are owner occupied and your renter burns the place down you are in a bad place, the insurance policy is no longer valid and they do not have to pay.

William Said:

How do you get your mortgage company to negotiate?

We Answered:

40 year mortgages are dead. They were a bad idea when offered and are a worse idea now. Sounds like you need to sell your home. You obviously cannot afford it. Not sure what got you into your bankruptcy mess, but even after the forgiven debt if you can't afford to make mortgage payments, you can't afford this house. They have no reason to negotiate as soon they will own your home.