How to Renegotiate Your Mortgage Terms
- 1). Call the mortgage loan company to learn about eligibility. Mortgage lenders use different factors to determine if a borrower qualifies for modified loan terms. Being behind on your mortgage loan or dealing with a drop or loss in income usually qualifies you. Speak with a mortgage representative for details.
- 2). Determine how much you spend on housing. Renegotiating or modifying your home loan is doable if you spend more than 31 percent of your income on housing, says Bankrate.com. Calculate your housing ratio by taking your mortgage payment and dividing it by your monthly income.
- 3). Document your income and expenses. Create a spreadsheet or document and list your monthly incomes and expenditures. Mortgage lenders will use these numbers to decide if you're eligible for a modification.
- 4). Write your hardship letter. This written letter is necessary to renegotiate a mortgage term. Explain why you're not able to make your mortgage payment such as you've had a termination from work or a drop in salary. Lenders take this information into account when evaluating your case.
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