What to do if you are facing Foreclosure

What to do if you are facing Foreclosure

By | 2016-01-12T20:49:19+00:00 January 12th, 2016|Uncategorized|Comments Off on What to do if you are facing Foreclosure

Are you worried that you may be facing foreclosure and not sure what to do? Keep in mind that lenders do not like to foreclose on mortgages. They will end up losing more money in the end, because of all the legal processing and such. Lenders are always willing to work with the borrower, just make sure you stay in constant contact with the lender, letting them know of your current situation. Do not ignore them or their phone calls and letters. If you are not sure of what to say or how to approach it, there are foreclosure assistance programs out there to walk you through the process and make it as smooth for you as possible.

The lender’s willingness to help with current problems will depend heavily on past payment records. If you , the owner for has always made your payments on time have no serious defaults, the lender will be more receptive than if you are always late on your payment. If you know that you are going to be facing financial hardship in the near future contact your lender as soon as you become aware of the issue, this will also make them more willing to work with you.

Once you contact the lender, expect them to ask you all about your financial situation, expenses, and such. Have all of this information handy prior to contacting your lender. The more information you provide, the better off you will be.

Remember, the lender wants to help you, the last thing they want is to foreclose your home. Depending on the length of your situation, the lender will have many different options for you to avoid foreclosure. If your situation is going to end within 60 days, talk to your lender about granting you temporary indulgence. Lets say you have an insurance settlement, or big amount of money coming in, be ready to provide proof of all of this to the lender in order to receive your indulgence.

Those of you who are suffering a temporary loss of income, if you are able to prove that the income has returned to its previous level may be able to work out a “repayment plan.” This plan will allow mortgage payments to be made as scheduled, along with an additional amount that will end the delinquency in no more than 12 to 24 months. Repayment plans are probably the most frequently used type of agreement.

In some cases, it may be impossible to make any payments at all for some time. For those of you who have a good record with the lender, a “forbearance plan” will allow them to suspend payments or make reduced payments for a specified length of time. In most cases the length of the plan will not exceed 18 months and will stipulate commencement of foreclosure action if the borrower defaults on the agreement.

These plans are used as a last resort to help the homeowner save their home. The lender will not consider any of these options if the borrower’s payment record is poor.

About the Author:

Yanni Raz is The Founder and CEO of HML Investments, with over 15 years in the real estate and hard money lending industry, Yanni is an expert in real estate investing, trust deed investments and more.