How to Find a Mortgage Loan With No Equity

Mortgage loans are difficult to obtain during depressed housing markets. Slow home sales could cause the average listed home price to decline and generally causes property values to decrease. Refinancing a home loan may  become impossible if your home has no equity or is considered underwater. Typically, a bank wants a homeowner to have some equity in their property; however a homeowner with an underwater mortgage owes more than his house is worth. If you want to find a mortgage loan, your current lender should be contacted before you begin to call other banks.

You will need to convince your lender to offer you a program that has better mortgage loan terms. This will not be an easy task, but you could save a lot of money if your lender reduces the principal amount due on your mortgage loan, lowers your interest rate or extends your loan terms to provide a more affordable monthly mortgage payment. In many cases you'll need to present a financial hardship to receive help from your lender. Stay the course, because your lender might decide to offer a mortgage loan modification or other assistance.

Avoid Foreclosure. Modify your loan. Eliminate your back payments, and save your home

Remind the bank of your loyalty as a customer for many years and about other accounts that you have maintained, such as deposit accounts, retirement investments, certificates of deposit or credit cards. Inform the lender of your decision to contact other banks, as a last resort to find a mortgage loan. This could motivate your lender to examine various mortgage loan options that might help your situation.

If your mortgage lender declines your request for a mortgage loan, you can contact other banks to find a mortgage loan or you can obtain information about refinancing online. Loan officers frequently work on commission and will not be paid unless they find a mortgage loan that meets your needs. You can contact multiple lenders to learn about your home loan options.