Negotiate Your Loan

Ask for betters loan terms to prevent foreclosure in California

How can you get a mortgage loan that you can afford to pay?

You are facing a problem and your lender is facing a problem too. See if you can convince your bank or lender to structure your loan in such a way that you can start paying easily.

Here are some methods to make your mortgage loan affordable:

• extend its term: make 15- or 20-year loan a 30-year loan
• add delinquent payments, late charges, and fees to the principal to lower your current debt
• reduce current high interest rate
• waive principal payments for a certain period and pay only interest
• defer interest payments
• partial payment or prepayment to bring delinquent payment up to date

Forbearance agreement with a new payment plan

Forbearance is another option that you may discuss with your lender. If you think that your financial situation will improve in about a year or so, then your lender may agree to spread your payments.

Prepare a financial plan supported by bank statements, your payroll stubs, and any other documented income. Your bank will be impressed with your organized finances and your determination to honor your obligations under your mortgage agreement.

Finally, don't sign a forbearance agreement if it does not really give you a good relief.

Need help? Review your options to get foreclosure help by professionals (lawyers specializing in foreclosure, foreclosure consultants registered to assist homeowners subject to foreclosure, debt counselors, and real estate agents in California), California state agencies, county agencies in California, consumer advocacy groups, and nonprofit organizations in California.