How to Renegotiate a Mortgage

If you're struggling to stay current on your mortgage payments, you may be able to renegotiate the terms of your loan.

Default and delinquency rates are rising nationwide as the economy continues to decline. Foreclosure proceedings are expensive, however, so banks are trying to avoid them by offering to modify delinquent loans, according to the most recent Mortgage Metrics report from the federal Office of Thrift Supervision.

Mortgage modifications formerly were reserved for homeowners who were already behind on their payments. Now, however, lenders are willing to offer them to homeowners who are still current and who meet certain conditions. In particular, Citigroup (C Quote), JPMorgan Chase (JPM Quote), HSBC (HBC Quote) and Bank of America (BAC Quote) have been willing to undertake preemptive modifications. ...