I wanted to update you on my situation regarding my mortgage. I asked you several weeks ago why my adjustable rate mortgage went up even though the index that determines my rate went down. After you explained why the rate increased you wrote in your article that since I could not make the higher payment based on the new rate of 11.62% that I should try to renegotiate with the bank to have them lower my rate to a fixed rate at or below the original 8.25%. You told me that they would look at my current financial situation and make a determination if they would be willing to do that. You said it would not be easy but many banks were starting to realize that taking homes back through foreclosures results in more losses for the bank. Like you told me to, I told them that switching me to a lower fixed rate would be more profitable to them since if they did not I would have no other choice but to let the home go back through foreclosure. Well after about a month of back and forth with the bank and many hours on the phone I am pleased to inform you that your advice worked. My mortgage company agreed to lower my rate to a fixed rate of 5.5%- almost 3% less than my original rate from 2 years ago! I am so thankful for your advice. I not only saved my home that has been in my family for many years but I also saved my credit score. Thank you so much for helping me save my home. A.D., Imlay City.
A.D., I am glad to hear that my advice helped and that you were able to save your home. I hope many other readers out there in similar situations also were successfully able to renegotiate with their lenders. The more people that are able to stay in their homes the better for them and our community. We all benefit from reducing the amount of bank owned homes. Keep those questions coming- I am always glad to help.
Alex Lengemann is a licensed Real Estate Broker who operates RealtyVolution.com, a local real estate company. You can Ask Alex your real estate or mortgage questions by phone 810-664-1819 or by email Alex@RealtyVolution.com.