How to negotiate with your lender
Before you are placed in the uncomfortable position of using a loss mitigation specialist, try to negotiate with your lender. When you contact your lender, ask for the loss mitigation department. Some lenders may accept partial payments for an agreed upon period of time. This is called forbearance. Of course, you will be expected to make up the difference at a later date. Still, this will give you time to make necessary adjustments to you budget. Lenders may also accept late payments or redo loan terms. This is called loan modification, giving you a payment arrangement that is mutually agreeable between you and the lender. This may stretch out your loan for a longer term, or convert your mortgage rate from an adjustable to a fixed.