We can't give it to you if you don't ask.

I just spoke with a friend today that has discovered something bazaar and he wanted me to know about it.

A couple of years ago, he refinanced his house with an adjustable rate mortgage that was scheduled to reset in two years time. He told me they thought they would probably move before that time, so the lower interest rate was enticing to them. Last month that interest rate jumped up enough to make his house payment go from $1,350 to $1,825 - an additional $475 a month!

When he called today, he confessed to me that his business wasn't doing very good right now and they've had to make their house payments late for the last two months. This not only destroyed his credit scores, but also made the payments go even higher with all the late payments and extra interest that was due.

Today his mortgage company called again to see when he would be making his October payment (today is October 29th) and here's the interesting part. When he told them the higher interest payments were killing him, the woman on the other end of the phone asked him to explain. He told her he needed some help to see if they could possibly work something out to lower his payments back to the old rate, so she transferred him to what she called, "our loan workout department".

Apparently, this lender has been so swamped with people having trouble making their payments and even risking forclosure, that they've created an entirely new department for helping people "work out" a new payment plan.

After taking some general information over the phone, my friend was able to negotiate a lower fixed rate interest payment and lock it in for a 30 year term, all because he asked. He told me the woman said to him, "We can't give you this option unless you ask." I suppose it's their corporate policy.

After he called me, I did some research and have since found out that this is becoming very common these days. Lenders are "working out" new plans that are more affordable, especially for people that got locked into a situation like my friend where their interest rate and payment made a huge jump seemingly overnight. These lenders have decided it doesn't benefit them financially or from a public relations standpoint to force people into these bad situations.

If you're having trouble with an adjustable rate mortgage such as this, you have 3 choices. Sell the house, refinance the loan, or you might simply try calling your lender to see if they might be willing to adjust your current interest rate.