( This post is for home owners who are facing increased mortgage payments due to the adjustment of their interest rates)
What a mortgage company can do to your loan depends on who the investor is and the type of loan a borrower has. Most likely the reason why the current loan went up from the initial payment you have been paying was because the new payment now is fully amortized(Principal+Interest+ or Escrow). What I also know is that to PRE-QUILIFY for any type of workout options with the bank you will have to show your hardship has been resolved or that you're able to afford your current payment. So if you have an arm at a 5% intro interest rate and you adjust to a 6.5 and that caused you to be in a hardship then yes most likely they will help you out by giving you a int rate freeze at your intro rate. But if you show that you cannot make your payment and are negative(short) each month on money then they will talk to you about liquidating the property before you become delinquent and fall in foreclosure.
Yes I know its tough but they can't help everybody! I suggest if you know you cannot afford the payment and will become delinquent, think about renting out your property and move into a family member's home or rent an apartment till you can refi out of the loan you have, or sell the property when it has equity so you can buy another one. I know this is not what you want to hear, but it's the best advice I can give if you want to preserve your credit profile to some extent.
