Call Us Today! 1-877-570-1313

I have a first mortgage, a home equity loan and a cc bill totaling $160,000 with a $1700 monthly payment. I tried to contact a company about refinancing but they aren’t interested because my home may not be worth what we owe. (typical for nowadays). Is bankruptcy my only option? I’m not really AT that point now, but I am trying to avoid it at all costs. Why wont a bank refinance what i ALREADY OWE THEM to a lower interest rate to make it more manageable….instead of making it harder for me and having the possibility of getting stuck with my house if i file bankruptcy?

Hello. Banks may be willing to negotiate with you but due to the situation in the market they are likely overwhelmed with people in your same situation. From what I’ve read, they do not have the manpower to keep up with all the negotiations for home loans. Another problem is that banks who originate mortages sell them so they probably do not own your loan anymore, rather it was sold to a third party investor making the situation more complicated.

There are services called loss mitigation companies that help you negotiate the situation with your bank. There are many options that can be pursued to avoid foreclosure which is the direction it sounds like you are trying to avoid.

I hope that helps.