Brokers who lie to you are dangerous

Homeowners caught in the housing burst problem are yet to get relief. Most of them are trying hard to rework their mortgage, but due to predator lenders and due to the lie of the brokers, they are hardly having any success.

Many a times, the mortgage lenders lie to their borrowers to lure them to take up a loan. Such lies include lying about the insurance and the taxes to be paid with the mortgage. Many a times, the borrower is able to pay the mortgage payment but unable to pay the extra insurance and taxes associated with the mortgage.

Once you take such a loan and come to know about the lies, its too late. Mortgage companies may no agree to rework the mortgage though they may agree to work with you to solve this problem. Such lie can eventually lead to foreclosure of your home.

If you try to negotiate your mortgage through a servicer, then know one thing-  your loan servicer cannot negotiate the mortgage. Your loan servicers do not own the loan, and so they cannot negotiate it.

Many of the mortgages are actually packaged loans and are not owned by a single bank. The loan servicers are actually managing the investments for the investors. He is answerable to the investors and not to the borrowers like you.

You may get a temporary relief but ultimately you will have to pay the amount which will be added to the mortgage amount.