Mortgage Forum

gtull1 · May 4th, 2008, 11:44 PM

We negotiated with our mortgage lender a few years ago, and they actually erased our bad credit history!

This was shortly after the hurricanes wiped out much of south Louisiana a few years ago. We had many family members that lost their homes, jobs, cars, and virtually everything. At one point in time, we had over 30 people living with us, as our home was not destroyed. To say the least, this put a huge strain on us financially. We went three months with paying our morygage after it was due. It's not that we wanted to be late on paying our mortgage, but we were desperate, and we had to help so many others that were way worse off.

About a tear later I was talking to my mortgagor. He was looking over my payment history, and he noticed those several loan payments that were late. He asked me what happened. I explained that we were late on paying our mortgage because we had to help others. We negotiated back and forth, and he finally decided that he would just erase the bad payment history. All of a sudden our credit rating went from just so-so, to outstanding!

I can't tell you how thrilled I was, and I learned a few really good lessons. If you are late on paying your mortgage, or you're just in a bad financial situation, you should contact your lender and ask them for help. Little did I know that they could actually reverse a bad credit report to the credit bureau. In the long run, this saved us a bunch by lowering future loan rates, and all it took was a bit of negotiating.

rachael24 · May 6th, 2008, 10:21 AM

Thats great news...always good to hear some positive!

gtull1 · May 6th, 2008, 10:38 PM

Quote:

Originally Posted by rachael24

Thats great news...always good to hear some positive!

Yes, it was really great news. Thanks. Most of us with a lender looking over our heads tend to think of them as the "evil empire". They're really just companies trying to turn a profit, and their workers are normal people too. Everyone has a heart, although some are hard to find. I found a mortgage customer service rep that was willing to listen to me, and she did what anyone with a heart would do.

Moral of the story- ask for help if you are in trouble with paying back any loan. It's amazing what can happen if you ask for it.

Zino · May 7th, 2008, 01:32 AM

Great story and advice Gtull1, and it's really inspiring to hear such good news!

You are right, most Mortgage Lenders are just companies trying to turn a profit and if they can work with you and still turn that profit without too much work on their behalf most will be willing.

A lot of people fear Mortgage Companies and if they get behind due to their circumstances, they avoid their lender hoping things will become more positive and unfortunately this is seldom the case.

It's always a good idea to contact the lender at the first sign of trouble and try and work with them towards a favorable outcome.

Thanks for sharing your story, it's great to hear good news such as this in the Mortgage and Lending industry.

gtull1 · May 7th, 2008, 07:29 PM

Thanks Zino. You're right. My only wish would have been that I contacted my mortgage company at the first sign of trouble. When you are down on your luck, you only hurt yourself by "hiding" from your lenders. They just want the money you owe them, and most creditors will go out of their way to make sure that you don't default on your home loan- including making allowances to help you get back on track.

P.S. I'm loving this mortgage forum! I wish I would have found this a long time ago. it's great to learn a thing or two about the mortgage/ lending industry. Hearing other's tell their stories about credit problems helps me to realize that I am not the only one that has been through financial hardships.

Glenn Dorsey · May 8th, 2008, 11:39 PM

I was in the collections business many years ago gtull1. I actually worked on collecting for physician's offices for about 7 years. I can tell you from personal experience that you can't hide from your financial problems. if you owe somebody money, you need to deal with it. Even if all you can say is, "I'm sorry. I'm broke, I may have to file for bankruptcy, and I just don't know how to pay you right now.", that's a heck of a lot better than hiding from your lender. I almost always found a way to work with folks that were honest with me. I don't know very much about the home loan/ mortgage industry, but I'm sure they work the same way, at least on collecting from home owners that are late on their house payments.

You did a good thing by calling them with your situation. The bank returned the favor by treating you with respect. That's a good deal all around man. Great lesson for everyone to learn!

Glenn

robibrk · May 12th, 2008, 12:13 PM

Yes, you are absolutly right. Before you do anithing read some articles ect.

May 4th, 2008, 11:44 PM	#1
gtull1 Administrator Join Date: May 2008 Location: louisiana Posts: 41	Negotiate With Mortgage Lender To Erase Bad Payment History We negotiated with our mortgage lender a few years ago, and they actually erased our bad credit history! This was shortly after the hurricanes wiped out much of south Louisiana a few years ago. We had many family members that lost their homes, jobs, cars, and virtually everything. At one point in time, we had over 30 people living with us, as our home was not destroyed. To say the least, this put a huge strain on us financially. We went three months with paying our morygage after it was due. It's not that we wanted to be late on paying our mortgage, but we were desperate, and we had to help so many others that were way worse off. About a tear later I was talking to my mortgagor. He was looking over my payment history, and he noticed those several loan payments that were late. He asked me what happened. I explained that we were late on paying our mortgage because we had to help others. We negotiated back and forth, and he finally decided that he would just erase the bad payment history. All of a sudden our credit rating went from just so-so, to outstanding! I can't tell you how thrilled I was, and I learned a few really good lessons. If you are late on paying your mortgage, or you're just in a bad financial situation, you should contact your lender and ask them for help. Little did I know that they could actually reverse a bad credit report to the credit bureau. In the long run, this saved us a bunch by lowering future loan rates, and all it took was a bit of negotiating.

May 6th, 2008, 10:21 AM	#2
rachael24 Member Join Date: May 2008 Location: Binghamton, NY Posts: 43	Thats great news...always good to hear some positive! __________________ Recent college graduate with a credit consolidation concentration.

May 12th, 2008, 12:13 PM	#7
robibrk Junior Member Join Date: May 2008 Posts: 3	Yes, you are absolutly right. Before you do anithing read some articles ect. __________________ Home Loan - Articles about all kind of Loans Loan Saving Tool Bad Credit Home Loan

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May 7th, 2008, 01:32 AM	#4
Zino Administrator Join Date: Jan 2008 Posts: 164	Great story and advice Gtull1, and it's really inspiring to hear such good news! You are right, most Mortgage Lenders are just companies trying to turn a profit and if they can work with you and still turn that profit without too much work on their behalf most will be willing. A lot of people fear Mortgage Companies and if they get behind due to their circumstances, they avoid their lender hoping things will become more positive and unfortunately this is seldom the case. It's always a good idea to contact the lender at the first sign of trouble and try and work with them towards a favorable outcome. Thanks for sharing your story, it's great to hear good news such as this in the Mortgage and Lending industry.

May 7th, 2008, 07:29 PM	#5
gtull1 Administrator Join Date: May 2008 Location: louisiana Posts: 41	Thanks Zino. You're right. My only wish would have been that I contacted my mortgage company at the first sign of trouble. When you are down on your luck, you only hurt yourself by "hiding" from your lenders. They just want the money you owe them, and most creditors will go out of their way to make sure that you don't default on your home loan- including making allowances to help you get back on track. P.S. I'm loving this mortgage forum! I wish I would have found this a long time ago. it's great to learn a thing or two about the mortgage/ lending industry. Hearing other's tell their stories about credit problems helps me to realize that I am not the only one that has been through financial hardships.

May 8th, 2008, 11:39 PM	#6
Glenn Dorsey Junior Member Join Date: May 2008 Location: new mexico Posts: 18	I was in the collections business many years ago gtull1. I actually worked on collecting for physician's offices for about 7 years. I can tell you from personal experience that you can't hide from your financial problems. if you owe somebody money, you need to deal with it. Even if all you can say is, "I'm sorry. I'm broke, I may have to file for bankruptcy, and I just don't know how to pay you right now.", that's a heck of a lot better than hiding from your lender. I almost always found a way to work with folks that were honest with me. I don't know very much about the home loan/ mortgage industry, but I'm sure they work the same way, at least on collecting from home owners that are late on their house payments. You did a good thing by calling them with your situation. The bank returned the favor by treating you with respect. That's a good deal all around man. Great lesson for everyone to learn! Glenn

Mortgage Forum

Negotiate With Mortgage Lender To Erase Bad Payment History

Negotiate With Mortgage Lender To Erase Bad Payment History