Talking to Your Bank
If you’re a homeowner who is facing foreclosure, your first thought may be to start packing. While this may be the only choice for some in foreclosure, it doesn’t mean it’s your
only choice. Before you throw in the towel, make an appointment in person to speak with your financial lender. You may be surprised how much help, assistance, or advice they are
willing to give you.
First and foremost, it’s important to know that banks and other financial lenders are not evil. It may sound silly, but this is how many homeowners feel when facing foreclosure.
Many want to know how another human being can force them to leave their own home. In the heat of the moment, many do not realize that banks want to avoid foreclosures just as
much as homeowners do. Financial lenders often lose money on foreclosure properties. That is why it is imperative that you schedule an in person meeting with your lender.
As nice as it is to know that you should meet with your financial lender when you feel that you are facing foreclosure or know for sure that it is looming, you may be unsure how
to start. Well, that is easily answered, the second you know you will be late on a payment, or that you are late. It is best not to wait until the foreclosure process starts.
If you can make a payment, but need a few weeks, be sure to make your actions known. This will prevent your lender from even considering foreclosure right away. Most mortgage
companies won’t start foreclosure proceedings unless you are 2 or more months behind in you payments. You will usually get a notice in the mail that you are late and to contact
them immediately, don’t ingnore this notice and don’t avoid any calls made to your home, speak with someone asap about your situation and they will usually work out some sort of
payment option with you.
One of the many reasons why homeowners are facing foreclosure is because of the job market. Long-term employees are now finding themselves standing in the unemployment line. If
you are laid off from your job, schedule a meeting with your mortgage holder immediately. They may be willing to work with you, provided you will be taking proactive steps to
find a new job. Often times, you may find your monthly mortgages payments temporarily reduced.
When your home enters into foreclosure, you will see signs posted on the building. With that said, this is not the first notice that you will receive. As a reminder, banks want
to avoid foreclosure just as much as you do, that is why they will likely call and send regular notices to your home. As embarrassing as it may be to admit that you can’t make
your mortgage payments, it is important to answer the phone. Remember, your bank may be willing to work with you and create a temporary payment plan. This is often the case when
you can prove your financial hardships are only temporary. For example, are you temporarily unable to work due to an injury? Were you laid off, but looking for a new job? If so,
make it known.
It is also important to determine how much you need to pay to stop the foreclosure proceedings in their tracks. Since banks want to avoid foreclosure, they may accept a portion
of the money that you owe. With that said, this is where you need to proceed with caution. If the bank requires full payment the following month, make sure you can make that
payment in full. If not, the process will simply just restart from the beginning all over again.
Finally, when discussing your options with your bank, it is important to do so in person. You will want to show your lender that you intend to get back on track financially, but
this is difficult to prove over the phone. Walk into the bank with your head held high, dress professional, and be very confident. You need to prove to your lender that the
words coming out of your mouth are true. Just because you say you are looking for a new job, it doesn’t mean that you are.
Online Foreclosure Advice
Are you a homeowner who is on the brink of foreclosure and your lender has already started the proceedings? If you are and have limited financial resources, you might not be able
to hire a lawyer to provide you with expert advice. Although nothing is better than professional help, you can turn to the internet.
When using the internet to find advice about foreclosure or to learn what your rights are as a homeowner, visit the website of the state you reside in. This should be the official
website for your state. Search the site for information on foreclosures, you should find information on the foreclosure laws in your state of residence, as well as detailed
information on how the process works. This information may also be available from other sources online, but you know the information is accurate and up-to-date when you get it
directly from the source.
Another type of website that you may want to checkout is that of foreclosure attorneys or those who specialize in real estate. Many lawyers will share important foreclosure
information and tips on their websites, available to you free of charge. For example, a current search of foreclosure attorneys will tell you that in some states, foreclosure can
be stopped right in its tracks when bankruptcy is declared. Although not all attorneys are willing to divulge all of their secrets, you may be surprised by how much information
you can find online.
The internet can also be used to help you find and hire a lawyer. As previously stated, those facing foreclosure don’t always have the financial resources needed to hire a
lawyer, but there are ways around this. Some lawyers will accept cases pro bono and others will work out a payment agreement with you. As for when you should hire an attorney,
you should do so if you fall victim to a foreclosure scam or if you believe that your lender is treating you unfairly and illegally. As a reminder, lawyers specializing in real
estate and foreclosures are recommended.
Credit counseling websites are another resource that you can find online. This is a controversial and sometimes risky approach, but help is out there for you. Some credit
counseling companies may try to work with your lender for you, and may result in a more affordable monthly mortgage payment for. With that in mind, there are many scams that
surround these companies, even those that claim to be non-profit organizations. For that reason, do the proper amount of research online first or check with the Better Business
Bureau (BBB).
The website for the United States Department of Housing and Urban Development (HUD) should be visited as well. There you’ll find a lot of information that isn’t only from a
reliable source, but accurate. This website can be found at HUD.gov. There, you not only can review your options before, during, and after foreclosure, but you can be connected
to valuable resources, including a HUD approved housing counselor.
Also online, you will find a number of websites that are operated by individuals just like yourself. Many have dealt with foreclosures firsthand, some came out on top, while
others didn’t. These types of websites can be used to provide you with valuable resources, as well as support. Hearing how to deal with foreclosure firsthand, through someone
who has been there before, may be a source of comfort for you.