How to Adjust Your Mortgage
- 1). Build a case for a mortgage adjustment by gathering and making copies of the financial papers that verify your claims that your gross monthly income has dropped while your monthly debt obligations have remained the same. Make copies of these papers, which include your most recent federal income tax return; last two paychecks if you're still working; savings and checking account statements; other loan statements and credit card bills.
- 2). Call your mortgage lender or bank, using the phone number on your current mortgage loan statement, and explain that you can no longer pay your monthly mortgage bill. Tell your lender why this is so: You may have suffered a job loss, seen your working hours slashed or suffered through a serious injury or illness that is keeping you from working. Ask for an adjustment to your loan that will result in a lower monthly payment--one that you can afford.
- 3). Write a hardship letter putting the reason for your inability to make your monthly payment in writing. Also, include your request for an adjustment to your loan. Your lender may not ask for such a letter, but it's a good idea to support your case by writing one.
- 4). Send your lender the hardship letter and the copies you made to start the adjustment process in motion. Your lender or bank will study these papers to determine just how serious your financial setback is.
- 5). Agree to a specific adjustment if your lender or bank approves your request. Your lender may suggest lowering your interest rate, which will drop your monthly payment. Your lender may also recommend dropping your principal balance or lengthening the term of your loan, both of which will also drop your monthly payment. Before agreeing to any adjustment, make sure that your new monthly payment will be low enough for you to afford.
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