When paying off a mortgage - can you deal?

Question

I know this might be an odd thing to ask, but would it be abnormal to try and get a deal when paying off a mortgage?  I figure it IS normal to submit low offers going into the deal, why not on the other end (the difference is WHO is accepting the low offer, I'd think)?

I guess what I'm asking is, are lenders hurting bad enough that they'd cut you a deal just to get the remainder of what you owe in their possesion?

I've never heard of that happening, but I though I'd ask.

Eric Foster · Answer

Yes you can… You can either refinance and bring cash in to close the deal… Meaning your loan amount will be smaller due to the cash you are bringing in. Or if you already have a good loan, you can call your lender and ask if you make an additional principal payment, will the “re-cast” your loan. What re-cast means, is your payment will go down instead of the term of the loan shortening…

With that said, you may want to look at the “deal” to see if that is a good way to go. It may just be better to sell the property or find another one that will cash flow better without a large cash injection…

Take care!

Mike Seluk · Answer

This is true...there is an absolute value to being goal/answer driven.  If one person doesn't know, see if they know who knows...lol.

Another question along the same lines...

Can you sort of reverse-refi?  Normally, people refi to adjust their terms, take money out and lower their payment, right?  Let's say I wanted to rent out the place I live in now, for whatever reason.  Could I put a bunch of money IN to get a far lower payment to make it a positively cashflowing property?

Eric Foster · Answer

It is ridiculous, to not ask the question!... I have learned the best information I know by simply asking the right people questions...

I am one of those people who call others asking “Do you know who I could ask this question to?... Many that I call will not know the answer to the question themselves, but many times they will know who I should call and ask.

Some of my calls have gone like this… “I spoke to Jim, who is the uncle of Bob, the guy you used to work with, and he told me that your neighbor’s best friend is a real estate attorney?...

Have you ever seen that piece on 7 decrees of separation?.... Kind of like that!

Good luck...

Eric Foster · Answer

The only time I have seen it happen is when the homeowner is in foreclosure (short sale) or when the values have came way down on a property (short pay)…

Other than that, I have seen lenders waive pre-payment penalties to get paid off. But I have not seen them take less just to get paid off.

Mike Seluk · Answer

Hey, that's pretty interesting.  I was expecting to hear that it was a ridiculous question, but that does make sense.  Thanks.