A Restructure requires either a reduced interest rate and/or reduction in the mortgage amount. This is the most powerful tool for many homeowners to save their home.
Get a Consultant to determine a mortgage payment you can afford based on the above described Affordability Budget. The monthly taxes and insurance are deducted from the available payment leaving the principal and interest payment. The Restructure Solution locks in the principal and interest for the remaining term of the loan thus allowing you to achieve true homeownership. The Restructure Solution requires that the mortgage payment reflects this affordable monthly payment. This can be accomplished by adjusting either or both the interest rate and outstanding mortgage amount. The Restructure is not conditioned on the three major limitations for refinances:
Equity in the home (i.e. loan-to-value)
Payment History (i.e. credit score)
The mortgage payment for principal and interest is submitted to the servicer of your loan (the servicer may not be the original lender). The servicer would reduce either or both to achieve the mortgage payment over the remaining term of the loan. The servicers has certain authority to change the terms of your loan. They may need to get the investors approval for such a solution. If the investor rejects this solution, you may appeal the decision since your Affordability Budget documents the maximum amount you could afford for a mortgage payment. If the servicer and investor still refuse the Restructure Solution then you could work with you as part of the Homeowner Advocacy campaign.