How To Get Mortgage Relief: Debt Collection and Your Right to Privacy

July 26th, 2011 | Posted in Debt Relief

If you are in the process of refinancing your home mortgage qualifying for the lowest mortgage rate will save you a lot of money. But How to get mortgage relief? Did you know that mortgage loans are sold as retail products just like your kitchen appliances? If you accept retail interest rates when refinancing your loan you could overpay thousands of dollars every month you keep the loan. Here are the basics you need to know about mortgage interest rates before refinancing your home loan.

Retail vs. Wholesale- When you’re talking about mortgage interest rates what’s the difference between wholesale and retail? Most homeowners are unaware that mortgage companies and brokers mark up their interest rate for a commission. This markup of your mortgage interest rate is called Yield Spread Premium and is what makes mortgage rates “retail.”

Qualifying for the Best Mortgage Rate- Before applying for a new home mortgage refinance loan you should review your credit reports for errors or negative information. There are three credit reports you need to request from three separate reporting agencies. If you find mistakes in these credit reports you will need to dispute the errors with each credit agency and allow enough time for the correction to boost your credit score.

Ask specific questions when you talk with them – get the name of the collector, the name of the agency, the name of the creditor, and phone/fax numbers for the agency. Keep notes of conversations and copies of all correspondences. Collectors are supposed to follow up with you via mail within five days of a phone conversation. In addition to this, you can request that all future correspondences be in writing. You can request that they don’t call you during certain hours, at work, or at all. Follow up with any privacy requests in writing. Keep in mind that if you’ve notified the collector not to contact you at all, they are entitled to contact you one more time to let you know how they intend to proceed.

Some People Get Wholesale Mortgage Rates…You Can Too- How can you avoid paying Yield Spread Premium when refinancing your mortgage? Homeowners who learn to recognize this unnecessary markup can negotiate with potential mortgage companies and brokers to avoid paying it. You can learn more about refinancing your mortgage without paying Yield Spread Premium by registering for a free mortgage video tutorial.

Learn more about Obama Mortgage Relief Plan Qualifications.