A Glaring Omission
Yesterday, I wrote a post called The Unfortunate Truth and I forgot to tell you something.
In case you didn’t read the post, it was about being proactive and how to get your mortgage company to negotiate with you BEFORE you are past due. The bottom line of the article is that being proactive like that is completly dependent on your lender. Some will deal and some won’t.
Here’s what I forgot to tell you, though…and it’s was a glaring oversight on my part.
You see, I currently own a rental property. I didn’t buy it as a rental property, though…I bought it as a primary residence. Then, after my family and I lived there for a little over a year, my company relocated me. Due to many reasons, we couldn’t afford to sel it. And I didn’t really want to sell because it’s a great rental market and I know the housing market will come back…if I can withstand the negative cash flow long enough.
Anyway, my loan is due to recast in May 2009. With interest rates what they are, I decided today would be the day I called my lender to talk about what the impending payment hike will do to my finances.
Once I got them on the phone, I was told there is nothing they can do for me and that my only option right now is to refinance.
The phone rep went on to tell me that they cannot discuss any relief options until we are “closer” to when my loan resets. She explained that too many things can change between now and then for them to begin negotiations now. I tried to pin her down on what I should do and she said to call back once I’m in the same billing period my loan resets and then we can begin the process if it’s necessary at that point.
What’s it mean to you?
Based on this morning’s conversation and others like it I’ve had with homeowners, the important thing I forgot to tell you is that if your hardship is a resetting loan, you should wait to contact your lender until you get notified of what your new payment is going to be.
Of course, this assumes you can make your current payments. If you can’t you should contact them as soon as you know you’re going to be unable to make those payments.
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