How to Renegotiate Your Mortgage: The Crucial Step
Gary North
Feb. 14, 2009 As you know, millions of home owners are upside-down
in their mortgages. They owe more than their homes are
worth. This is a major factor in the lack of economic
recovery. The lenders will not re-negotiate what are
clearly bad loans. If an owner is paying his mortgage on
time, he gets no cooperation. Only if he is several months
in arrears are lenders willing to deal, in order to keep
from having to foreclose on the properties. The situation is so bad that a member of the Board of
Governors of the Federal Reserve System gave a speech on
this refusal of the lenders to negotiate. You can read it
here. http://www.garynorth.com/snip/787.htm There may be a way out for home owners who know what
to do. Hire a lawyer. If a lawyer acts as an
intermediary, a lender pays attention. Even if you have been told by a bank's representative
(who makes $10 an hour) that no such negotiation is
possible, this may not be true. Hire a lawyer. The bubble was promoted by unscrupulous brokers who
faked data and oversold borrowers. Your lender may have
encouraged this. Lenders worry when they see a letter from a
lawyer asking for re-negotiation of a loan. In this market, those who pay on their upside-down
mortgages are funding lenders who are willing to re-negotiate with borrowers who are not paying. The squeaky
wheel gets the grease. There is no better way to get squeaky than to hire a
lawyer. If you can find one who specializes in such re-
negotiations, so much the better. Tell your lawyer to demand to see a copy of the note: To whom you owe the money. No note? Sliced and diced? Missing in action? You now have extreme leverage. For more information, click here: http://www.garynorth.com/snip/788.htm At $100+ per hour, don't let the lawyer do this research. You do it, then print out the two articles that look good to you. Ask him to drop them a note on letterhead stationery. Squeak. For a free subscription to my Tip of the Week, use the subscription box here: www.GaryNorth.com.
|