Should I continueto notpay my mortgage to press the bank to help me on my request for payment modification?

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Should I continueto notpay my mortgage to press the bank to help me on my request for payment modification?

I am currently working with the bank to lower my monthly mortgage payments or, if possible, lower the principal. I feel the bank is trying to gain some time or is playing with me by asking over and over for the same documents submitted. They are saying that they are at the end of the process for a resolution but I keep hearing the same in the last 2 to 3 months. I stopped to pay the mortgage last month since an increase in the payments came because of the type of mortgage I obtained in my last modification. I heard and read and also I was advised by some friends to stop paying because the bank will not help me since they are getting their money. Last month I stopped paying my mortgage and this month will be my second miss. Should I continue this way to press the bank to help me and give me an answer soon or should I pay what I own and keep waiting for an answer? Could anyone give me an advise on an effective way to lower my monthly mortgage payments?

Asked on November 14, 2011 under Real Estate Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

1) If you don't make your mortgage payments, you will be in default. The bank will be entitled to foreclose on you and then, potentially also seek a deficiency judgment (i.e. after your home is foreclosed on and sold at auction, if it brings in less than the remaining balance due on the loan, the bank can sue you for whatever amount remains unpaid).

2) Banks don't have to work with you if they don't want to, whether you pay or not; there is no way to force or pressure them to respond to you. Consider that while the mortgage is signficant to you, it is not even a blip on a bank's balance sheet--you have effectively no leverage.

3) If you NEED to lower your payments and can show they are, or will become, unsupportable, try showing that  to the bank. If bankruptcy is a legitimate option for you unless you get relief, you can share that fact with the bank, too--while they'll ultimately still be able to foreclosure if they are not paid, it will complicate their collections and foreclosure efforts.

4) Just trying to lower your payments because you feel they should be lower, but while you are still able to pay them and cannot demonstrate an inability to pay, is likely to not be successful.

 


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