My husband lost his job while I was on maternity leave and we fell behind in our mortgage.

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My husband lost his job while I was on maternity leave and we fell behind in our mortgage.

We are now trying to modify our mortgage and the most our bank is willing to do is drop it 1%. They want to roll all of the interest and past due payments back into the loan making it more than the original mortgage. I am the only one working with a gross monthly income of only $2200. Our mortgage right now is $1350. Don’t they have to modify it to be no more than 30% of my gross income?

Asked on May 26, 2009 under Real Estate Law, Pennsylvania

Answers:

J.M.A., Member in Good Standing of the Connecticut Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

unfortunately the bank is not required to give you 30%, but you should be able to get better than 1% off.  If you fell behind on your mortgage, your credit is probably shot up a bit where you may not be able to refinance.  I suggest calling the bank to find out if they wil entertain a refi despite the impact your credit score.  I would also suggest contacting a lawyer to help you negotiate with the bank so that you are able to have someone talking for you that is familiar with the way banks work and can get you a better deal.  There are also companies out there that specialize in helping people get modifications.  You can try going on line to locate one of these.


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