Many borrowers are faced with the inability to make their monthly mortgage payments. The primary reason for this is due to one of the following circumstances.
- The borrower was talked into a higher rate loan by a loan officer with the promise of refinancing out of this loan into a lower rate loan within a year. The mortgage arena has experienced many changes and most of the lender's guidelines have changed, leaving the majority of these borrowers stuck in their higher rate loans with a payment they can not afford.
- Your loan officer showed you how you could obtain a mortgage for a home you really could not afford by placing you in a loan with a very low introductory interest rate. The rate was to increase gradually. The problem is interest rates have risen and the negative amortization has accumulated quickly on these loans forcing the lender to increase the payments drastically. Your payment has gone up over 30% making your new payment more then you can afford.
These reasons being identified, you are still faced with a mortgage payment you can not make. You are falling behind and the great American dream is turning into a nightmare. This is not a time to sit and do nothing, be proactive. Don’t wait until you get threatening phone calls or letters explaining foreclosure procedures. CALL YOUR LENDER. President Bush has asked all lenders to act responsibly and work with borrowers on their own. They are not being mandated yet, but are being strongly encouraged. No lender really wants to have an inventory of homes on their books. They do not really want to foreclose on your property. Make contact and see if there are any modifications the lender is willing to make on your loan that will make your payment more affordable. Work together and cooperatively. This is not to say that all lenders will be willing to do anything but it is in your best interest to make the first contact.
If you need help or have a complaint to file, listed below are numbers and e-mail addresses to some of the government agencies that oversee lenders.
New Jersey Department of Banking and Insurance- regulates state chartered institutions and mortgage companies
609-984-2777
www.state.nj.us.dobi
Offices of the Comptroller of the Currency – regulates national banks
800-613-6743
www.occ.gov
Office of Thrift Supervision – regulates national savings and loans
800-842-6929
www.ots.gov
New Jersey Citizens Action – a US Dept. of Housing & Urban Development counseling agency
732-341-3252 or 973-643-8800
www.NJCitizensAction.org
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