ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

How to Get Out of a Bad Mortgage: Get Out of a Bad Mortgage ASAP

Updated on February 15, 2010

How to Get Out of a Bad Mortgage: Ready to Get Better Rates?

Is it possible to get out of a bad mortgage? Are you terrified of being stuck with bad rates for decades?

With a little research and some perseverance, you can get your mortgage loan re-negotiate to provide better terms and rates for you. Whether you choose to go through a professional, or tackle the lender yourself, countless homeowners have successfully negotiated better rates on their homeowner's loan.

Here are some suggestions you can try if you are searching for how to get out of a bad mortgage.

Step #1: Contact the Mortgage Lender

If you're having trouble making your monthly mortgage payments, you are far from alone. Homeowners are defaulting on their home loans in record numbers in these past several years. If you want better rates on your mortgage, your first step should be to contact your lender in writing or over the telephone. If you talk to a mortgage representative on the phone and feel like you aren't getting anywhere, ask to speak to someone in their Loss Mitigation department.

It may be harder to convince the lender that you really need help if you are still managing to make payments on time, but don't start skipping payments just to seem more desperate. The situation could spiral out of control very quickly, and your home could wind up under foreclosure.

If you are unable to make timely mortgage payments, however, this is a clear sign to the lender that you truly do need help, and you may be able to get better terms negotiated just by initiating contact with them. They would prefer to get some money out of you than none at all, obviously.


Step #2: See If Your Home Qualifies for Government Housing Legislation

If you fulfill certain requirements, you may be eligible to get your mortgage refinanced under the US government-mandated Making Home Affordable mortgage legislation. Keep in mind that your participation in this program is entirely voluntary, so it's up to you to pursue refinancing under this Act if you fulfill these qualifications:

  • You owe less on your house than it is worth (you aren't underwater on the mortgage)
  • It's your primary residence
  • Your house is worth less than $729,750
  • The mortgage was created no later than December 31, 2008
  • You can prove, through decreased income or increased mortgage payments, that you are struggling to make payments
  • Your required mortgage payments comprise 32% or greater of your regular monthly income


Step #3: See If Your Mortgage Loan Needs to Be Rewritten

During the housing craze of the years from 2005-2008, mortgage lenders drafted countless loans as quickly as possible to cater to insatiable demand. Some of those loans were so poorly written that they are littered with errors that make them unlikely to be upheld in a court of law, and you might be able to take advantage of their lack of quality.

An experienced mortgage lawyer can read through your mortgage quickly, and ascertain whether or not your mortgage has enough errors to pressure the lender into rewriting the loan completely, with more favorable terms for you at the same time. This can be a worthwhile investment for you if you borrowed money to pay for your home at the peak of the housing bubble.


Step #4: Contact an Accredited Housing Counselor

If all else fails, you may have better luck re-negotiating the terms of your mortgage through a professional housing counselor, who will contact your lender on your behalf and attempt to get a more favorable mortgage loan written for you.

Use the National Foundation for Credit Counseling website to find an appropriate counselor for you, not just an Internet search. Because people who need help managing their mortgage are usually desperate, scams and outrageously-priced services provided by amateurs are rampant on the web.


Comments

    0 of 8192 characters used
    Post Comment

    • personalfinances profile image

      personalfinances 

      9 years ago

      Great Hub Brittany. Your last point about using "the National Foundation for Credit Counseling website to find an appropriate counselor for you, not just an Internet search." is extremely valuable. Too many people fall prey to scams, especially when they are in debt.

      All the best

      William

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)