Is there a way to lower my home loan mortgage payment that was increased without notice?
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Is there a way to lower my home loan mortgage payment that was increased without notice?
Is there a way to lower my home loan mortgage payment? I have land and property in Georgia. The land I financed and paid separate from the house I built on the land. I was paying the same amount for my mortgage monthly with Wells Fargo for two years, until they raised my rate on my land and my property without warning. All payments always made in full on time each month. I also have a property in New York with Wells Fargo where the rate was not affected. The rate is raised near 50%. I cannot afford this payment. What can I do to lower my payments without foreclosure or refinancing?
Asked on July 28, 2012 under Real Estate Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Your mortgage loan is a contract; both parties are bound by its terms. Review the loan documents. If the loan allowed this rate increase, you are bound by it so long as the bank followed whatever requirements or procedures (if any) are set out in the document for the increase. If the loan did not allow this increase, or if the bank violated the procedure for the increase, then you could potentially go to court for a declaratory judgment (court determination) declaring that the higher rate is not in effect, an injunction (court order) requiring the bank to charge you the lower rate, and/or monetary compensation (to recover any amounts you paid in excess interest).
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