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Advice That Will Help The Homeowner In Foreclosure

Some Help and Advice That Will Help the Homeowner Facing Foreclosure

It’s hard to know what advice to follow in today’s market. If you are facing foreclosure, there are a number of things to consider as solutions to your problem.  Before you make any of these decisions, you should take note of the following four suggestions.  Saving your home from foreclosure means you need to be prepared to work with your lender and have all your information where it is easily accessible.

It necessary that as soon as you realize you can’t make a payment that you contact your lender to discuss and weigh all options available to you.  You might have the option of refinancing or modifying the terms of your payment schedule.  Find out if you qualify for a forbearance agreement.  This allows you to temporarily postpone payments for a specific period of time without your lender filing a notice of default. 

There are four tasks that should be tackled quickly if you have become, or about to become late in paying your mortgage.

1. Immediately contact your lender and ask to speak to someone in the loss mitigation department. The loan mitigation department can help you negotiate a loan modification whereas the main customer service department representative who answers the phone does not have the authority to do so, they can only collect the past due amounts.  Have all your information memorized and in front of you when you call the lender. You need to project the feeling that you are familiar with your circumstances. If they question anything such as a time frame or event you need to have the information in front of you for easy and quick reference.
2. The lender will ask for this handwritten letter that explains the circumstances that caused you to become delinquent on paying your mortgage. Write a very detailed “Hardship Letter” for the lender.   The lender needs to understand what events have caused your default and why you can’t or couldn’t make your payments.  Don’t embellish your story with falsehoods.
3. Provide backup documentation necessary to submit to your lender along with a hardship letter.  The lender normally wants copies of receipts, hospital bills, invoices, leins and any other documentation to support your statements.
4. Be sure to include in the close of the letter your plans on how you will stay out of foreclosure from this point on. For example, you may have lost your job and health insurance was provided by that job; the loss of health insurance meant that your medical expenses were not covered by insurance and your savings were spent on the medical bills.  If you can explain to the bank that you have found a new job, and that your medical expenses are now is now covered and that new job pays you a salary enough o cover your mortgage payment, you have leverage with the bank.  The bank does not want to foreclose on your home, because it’s an expensive proposition to them.  Therefore, you should tell the lender how important your home is to you. This shows the lender you are very serious about getting back on track with your mortgage.

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