I'm a little confused! With this ever changing Mortgage situation- Just a thought! If a customer has a Mortgage and is behind on their payments the first step Lenders do is to establish their current financial situation right? If it is confirmed that the customer still has the funds to pay their mortgage but, maybe has just fallen behind and needs to get caught up, Why does the Lender and or Investor not look at the whole picture. It has been my experience with customers I've talked to when they make that phone call they are asked a series of questions and the Lender comes up with an amount that is required to get their payments current. Usually this amount includes their Principle payment which is understandable but, it also includes, Late charges, all Escrowed fees as well as PMI. Now here is the thought- Call me crazy!
Why not waive the PMI fees and late fees for a period or perhaps attach those fees to the end of the note. This would lower the customers monthly payments by usually a sizeable amount and perhaps allow that customer a reasonable amount to get their account current? This is just a thought - I'm not a Lender or Investor. I just talk with alot of people who are in danger of loosing their homes and the one main thing I always hear is that the customers get with the Lenders and the amounts needed to get their accounts current are usually higher than their normal monthly payments and that is bizarr to me on some many levels! Would it not make since to find ways to reduce their payments instead of foreclosure?