Many homeowners are struggling to make their monthly mortgage payment. Every income level has been feeling the effects of a struggling economy and paying the monthly mortgage has become harder to do. Here are some tips for renegotiating a mortgage into a more affordable monthly payment.

Right now, over 1 million homes that have been foreclosed on are for sale. These homes represent over 25% of the available realty for sale right now. These homes are not just from low income neighborhoods either. Many of these homes are from more affluent areas that have been hit hard by falling home prices. Many homeowners have negative equity and are upside down on their home loan.

Since so many homeowners are struggling, many mortgage lenders and banks are now willing to renegotiate home loans so that foreclosures are avoided and homeowners can afford to make their monthly mortgage payments on time. Also, new mortgage refinancing options exist for nearly homeowner, in any financial situation, thanks to President Obamas housing stimulus plan. This stimulus plan would allow nearly 5 million homeowners the chance to get approved for low interest rate mortgage refinancing that they would not be able to qualify for otherwise.

Here are some tips for homeowners who wish to renegotiate their home mortgages.

-Do not skip any payments or allow it to happen.
In the past, homeowners needed to miss a couple of payments in order to get a mortgage modification approval. These days though, things have changed. The big 3 mortgage lenders, Bank of America, Citigroup, and JP Morgan Chase announced a plan that calls for them to contact a struggling homeowner before they fall too far behind in their payments. Now, homeowners with reduced incomes, no job, or other financial problems can save money every month on their home loan payments simply by contacting the mortgage lender or bank and documenting their financial burdens.

-Think about a mortgage refinance.
Home loan refinancing may allow a homeowner the chance to get into a lower interest rate. Most homeowners pay more in interest rates than what is available now. Refinancing a mortgage will allow a person to take advantage of the low interest rates available now. Many homeowners have 10% equity in their home, which is required to get a beneficial mortgage refinance approval. Many homeowners will also need to have a credit score that is at least 680 in order to fully benefit from refinancing. While this may not be the best option for every homeowner, it should be considered.

-Dont take things personally.
Many homeowners are not even able to make mortgage payments even if they were dramatically reduced. If you are capable of making your home loan payments, you are much further ahead of the curve than most people. Refinancing or mortgage modification would just be the icing on the cake and make life easier and is not necessary in order to prevent a foreclosure. At least you still have your home and are not being forced out of it due to foreclosure or default. Many mortgage lenders and banks do not want to deal with more foreclosed properties and are anxious to work with a homeowner to find a deal that everyone benefits from.

Many homeowners are going to be able to save a lot of money every month by taking action and getting a mortgage refinancing or modification. This is one of the easiest times in history to get approved for a super low interest rate mortgage through refinancing or modification programs. Homeowners should carefully consider all of their options and contact a variety of mortgage lenders or banks to ensure that they are getting the best deal possible. Help is available but it is up to the homeowner to find and apply for it.

-M. Petrone

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