because of the 07-08 housing crash. Ask your mortgage holder for a loan modification (reduced mortgage payment, and possible principal reduction). The principal reduction would be an added bonus but less likely than the modification. It could happen though.
With loan modification requests you have to have a legitimate hardship, and because of the crash your house is underwater and you are up against it with mortgages coming due and possible baloon payment at the end maybe? You have a real hardship.
What you have to do in order for them to take your loan modification request seriously — steady yourself as this part takes some guts and goes against what most hard working people think — you have to stop paying your mortgage.
Two to three months will do it. You'll get letters and phone calls from the mortgage holder.
Steady, remember. Don't answer the calls at first. I assume you have a phone that shows the number of the caller. After 3 months answer the call and tell them you are having problems paying and ask for a loan modification packet because you really want to keep your home.
It's a process. They'll send you this packet that asks for a detailed hardship letter where you explain your situation and how you are a victim of housing crash and how you've diligently paid your mortgages all these years but finally your funds are exhausted and you would be grateful for whatever they can do to reduce your monthly payments. Lay it on thick as it'll be true.
They'll want financial info, bank statements, 1040 forms, household expenses and other info.
Just take you time and gather all the documents they ask for and send it back to them. They'll ask for more documents. They'll claim they lost ones you've already sent. They'll change representatives on you who will request the documents all over again. They'll make it as much of a pain in the ass as they can but be patient and keep sending them the stuff.
AND THIS IS IMPORTANT: WHEN YOU GET THE PACKET, COPY ALL THE FORMS FIRST BEFORE FILLING THEM OUT SO YOU'LL HAVE A MASTER THAT YOU CAN RE-COPY IN CASE YOU MESS UP AT THE FIRST ATTEMPT.
THEN, ONCE FILLED OUT, COPY ALL THE FILLED OUT FORMS BEFORE SENDING SO YOU'LL HAVE A COPY OF WHAT YOU SENT THEM WHEN THEY ASK FOR IT AGAIN AND AGAIN AND AGAIN.
Just consider it a process you have to go through to get a lower mortgage payment and better situation. And in the meantime, keep stashing away the money you would have paid the mortgage with (not in you bank account because they request the last two to three months of bank statements.
Hope this helps. Check with an attorney or home retention advisor. They will tell you that if you keep paying the mortgage they won't take your request seriously as you are making the payments.
Good luck. Been there, done that.
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