Saving you Home Foreclosure Short Sale Mortage Loan Lender

The harsh reality of foreclosure can loom at anyone’s doorstep. For numerous reasons people are unable to make ends meet. If you are in danger of falling behind on your mortgage payment or you are currently delinquent. It is important to know what steps need to be taken and what options are available. You need to take action quickly.

The most important step to saving your home is Communication. Contact your lender immediately upon realizing that you are going to be late on a payment or you are unable to make your payment. Do not wait until the payment is already late or worse yet more than one payment past due.

For most people making the initial phone call is the hardest thing to do. Maybe you are embarrassed or scared. What ever the reason is people tend to want to avoid the phone call altogether. Don’t! The person on the other end of the telephone is just that a person. They are not going to yell at you, nor are they going to criticize you. In fact they are going to appreciate that you are responsible and care enough to save your home and fulfill your obligation to pay the loan.

Your lender will want to help find a solution that will work for you so you can stay in your home and continue to pay your mortgage. The last thing your lender wants is your home. Let’s face it, if lenders wanted to own homes they would be in the home buying business not the loan business. The interest they make on the money they lent to you is much more valuable to them than the foreclosing on your home. In fact it costs a lender a ton of money when a loan goes bad.

You must asses your situation by taking financial inventory. Gather all of your bills and write the monthly amounts down. Include on this list any money you spend on groceries, going out to eat, gas, even that cup of coffee you grab on your way to work. Calculate what you are paying out monthly. You need to be equipped with a clear understanding of where your money is going. Knowing this before you call your lender will better help you negotiate with them.

If you have lost your job or have been injured, be honest with the lender. What ever your situation is know that when you talk to the lender they are going to ask you how soon it will be before you will be back to work. If you are not going back to work for the same employer, what plans do you have to earn an income. If you tell them finding a new job is hopeless there is a good chance they are not going to be anxious to work with you. However, if you know the situation is temporary or you have a timeframe let them know what that is. Also, let them know what action you are going to take to find a new job or to get back to work. Every situation is different, but having the right plan and being clear with what your intentions are, will help this process go smoother.

There are numerous avenues you can and should explore,when you become in jeopardy of losing your home to foreclosure. Find the solution that fits your situation the best.

Selling your home might be a viable option. For some, the thought of losing or selling their home is unthinkable. But if it comes down to losing your home to foreclosure and damaging your credit rating, you might want to carefully consider this option. The first thing you need to do is find out what your property is worth in today’s market. Contact and interview a few REALTORS in your area. Make sure the real estate agent you choose knows your area, and has experience selling homes in your area. Find out what the average selling time is for a home similar to yours in your immediate area. Choosing an educated real estate agent who will set the right asking price is imperative to getting your home sold quickly. Don’t assume because one of the agents is telling you that they can get a lot more money for your home than the other agents have told you that this is the right price. More than likely your home will sit on the market and never sell if you go with the higher asking price. Remember time is not on your side when you are facing foreclosure. Your goal is to get your home sold quickly.

What happens if you find out that your property is worth less than when you bought it for? You still have options. You can ask your lender if they will do a short sale. A short sale is when the sale price of the property is less than what is owed on the loan securing the mortgage. Make sure you contact an accountant and or an attorney to find out what your tax and legal ramifications could be if you choose to do a short sale. Also, if you decide to go the short sale route make sure the REALTOR you hire has experience working short sales.

You also could ask the bank if they would be willing to do a deed in lieu of foreclosure. This process has to be in writing, because the process has to be voluntary by both parties. In essence you are asking the bank to agree to take back the house and release you from all or most of what you owe. Contact an attorney and or an accountant to find out what the legal and or tax ramifications of this process are. Also make sure the REALTOR you are hiring is educated in this process.

There are several options that your lender maybe able to offer to you. Depending on what type of loan you have your options may vary. Setting up a short term repayment agreement for the amount that is or will be past due could be the quickest and easy fix if.

Having your payments reduced by way of refinancing your mortgage and or having the interest rate reduced. Ask to have your payments temporarily suspended or reduced. Have the payments that are past due added to the principle. This option will cause your payments to increase. Even if these options are not offered to you, but you feel one may work for you. Ask. It never hurts to ask. Make sure you are able to follow through with your payments once you have made an agreement with your lender. It will be a lot more difficult to get them to help you again if you don’t stick to your end of the agreement. Not paying as agreed could also accelerate the foreclosure process.

There are numerous agencies out there willing to help you explore your options and give you some advice. The first place I would start is The US Department of Housing and Urban Development also known as HUD. Here you will find a more in depth guide to avoiding foreclosure. There are also local housing agencies in your area that specialize in helping people who are facing foreclosure. The best way to find help in your immediate area is to call your local housing authority. If they do not specifically handle cases where people are facing foreclosure, the likelihood they can point you in the right direction is high. Remember the most important step to saving your home from foreclosure is Communication. Keep in constant contact with your lender through out the entire process. Ask lots of questions and find out the facts.