Don't Stop Making Your Mortgage Payments

Mortgage and Lending with Right Start Mortgage (NMLS #35960) NMLS #19622

I heard a story over the weekend that is becoming more and more common. People hear on TV or read on the internet that they should call their current mortgage lender to have their mortgage modified. A modification may be to have their interest lowered to current rates, lengthen the term of their mortgage in order to lower their payments, or fix their interest rate if they currently have an adjustable rate mortgage.

So, the customer calls their lender and gets a customer service rep who says that they can't even consider modifying their loan because they are not currently delinquent. They need to actually prove they are struggling by missing payments before the bank will consider a Loan Modification.

Well, I'm not sure this makes sense! But, the customer does as they are told and doesn't pay for 2 months. They are just doing as instructed. Then, their lender sends them a Notice of Foreclosure! They call for a modification and the lender tells them that they can't modify a loan that's currently in foreclosure.

These people have obtained an attorney and are working on sorting everything out.

Another situation is a customer of mine who, 2 years ago, was refinancing their loan with another bank. The loan officer told her that she didn't have to make her mortgage payments since she was refinancing. She could save some money. Well, according to the credit report, the refinance hit some sort of snag and took 3 months to close. Her credit now shows a 90 day late payment, which in today's tight credit market is a hinderance for her getting a new loan -- even though it was over 2 years ago.

Moral of the story...keep making your monthly mortgage payments no matter what anybody tells you.