Foreclosure - Does The Bank Really Want To Repossess Your House?
Posted on May 16, 2008 - Filed Under Business
Foreclosure can cause people to become overwhelmed with emotions. Fear of losing your house to the bank can bring about anger, sadness, embarrassment and humiliation. It can make you feel like you are a total failure. These emotions oftentimes lead people to become immobilized and incapable of making simple decisions.
Although foreclosure can be a frightening experience, there is light at the end of the tunnel. Unless the gavel has been dropped in a courtroom and a Judge proclaims your house must be returned to the bank, you still have options. However, much depends on what phase of foreclosure you are currently in.
If you are only a few months behind on your mortgage payments, you have more options than someone who has received an auction notice from the Sheriff’s Department. If you are unable to make your mortgage payment or have already missed one payment, call your lender NOW.
Keep in mind that the bank really does not want to repossess your home. If you have the ability to become current on your payments in a reasonable period of time, your lender may offer you a loan modification. In this type of transaction, the lender might roll over the delinquent payments to the end of your mortgage loan. This will allow you to start over and save your home from foreclosure.
If you have missed several payments and neglected to contact your lender, your bank may not be as willing to work with you. However, the secret to obtaining the help you need is to prepare a repayment plan prior to calling your loan officer.
When contacting the bank to discuss your foreclosure repayment plan, you will need to speak with the Loss Mitigation Department. Prior to calling, organize your paperwork and calculate your income and expenses. Write an explanation of the circumstances that caused you to fall behind on your mortgage payments. Have everything ready and available when you make the call.
Most importantly, stay calm and be respectful. Explain your situation to the Loss Mitigator and let them know how much you can pay and on what dates. Be realistic in your offer. Otherwise, you will be unable to keep your commitment and your lender will not be as willing to give you a second chance.
Ignoring your lender’s call and letters is the worst thing you can do. If you do not make contact, the bank will have no choice but to initiate foreclosure proceedings. While it can be difficult to pick up the phone and call, you absolutely must do so. Avoiding contact will not make your lender go away and will only make your situation worse.
If you are unable to negotiate with your lender, there are still options available to help stop foreclosure. Borrowers who have FHA-insured loans can obtain free financial counseling from the Federal Housing Association. Housing counselors are available to review your financial situation, determine available options, and assist with lender negotiations.
If you are facing foreclosure because you do not know how to handle your finances, consider working with a credit counseling agency. Use caution when selecting credit counseling agencies and avoid those who charge upfront fees. Once you have chosen a credit counselor, let your lender know the name of your counselor and the company you are working with.
Realize it costs your lender time, money and resources to commence with foreclosure proceedings. If you initiate a conversation and offer a repayment plan, chances are your lender will be willing to work with you to save your home from foreclosure.
There are instances where homeowners simply cannot avoid the foreclosure process. In these cases, lenders are sometimes willing to accept a short sale. In this type of real estate transaction, lenders agree to accept a lesser amount than is owed on the mortgage note.
The only way to know which options are available for your situation is to contact the Loss Mitigation Department of your lender and negotiate to the best of your ability. Take time to conduct research and familiarize yourself with options available to people facing foreclosure. Talk to professionals who can explain your options and most importantly, never give up.
Simon Volkov is a private Real Estate Note Investor who provides solutions to individuals facing
foreclosure,
short sales and other hardships. If you need to sell your house fast or looking for alternatives to help you avoid foreclosure visit http://www.SimonVolkov.com today
Tags: Credit Counseling, foreclosure, lender, loss mitigation, loss mitigator, mortgage payments, repayment plan
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[…] Stuff - and much more wrote an interesting post today onHere’s a quick excerptForeclosure can cause people to become overwhelmed with emotions. Fear of losing your house to the bank can bring about anger, sadness, embarrassment and humiliation. It can make you feel like you are a total failure. These emotions oftentimes lead people to become immobilized and incapable of making simple decisions. Although foreclosure can be a frightening […] […]