Facing Foreclosure? Call Your Lender!
Noelle Know of Gannett News included an interesting statistic in a story earlier this week:
"Of the almost 280,000 homeowners who lost their homes to foreclosure last year, half of them never talked to their lenders."
All I can say is wow!
As I've said many times before the single most important thing you must do when facing foreclosure is contact your lender. Not tomorrow... TODAY.
Trust me - your lender does not want your home. Most foreclosures involve homes with little or no equity. Lender's lose money when they have to acquire and resell the property. According to the story in Gannett, foreclosing on a home and reselling it costs a lender $59,000 on average. What they really want is for you to stay and pay. They will likely work out a payment plan or other solution with you if you contact them immediately.
To help you be better informed when you speak with your lender, Gannett News reports that the following five solutions may be considered by lending institutions as an alternative to foreclosure:
"Refinance: Allow the homeowner to refinance the current loan into a new loan. For example, you could refinance from an ARM into a fixed-rate loan.
Repayment plans: Long-term catch-up plans allow homeowners who have fallen behind to pay more per month on their mortgage, gradually bringing their loans up to date.
Loan modification/restructure: Agreement to change the interest rate or other terms of the loan
Forbearance: To postpone the interest or payments on the loan for a fixed period of time
Quick sale: Allows the borrower to sell the property for less than the loan, and consider the loan paid in full."
Keep these strategies in mind if you find yourself in this type of unfortunate situation. And always remember to CALL YOUR LENDER!
-Bill Burniece
Noelle Know of Gannett News included an interesting statistic in a story earlier this week:
"Of the almost 280,000 homeowners who lost their homes to foreclosure last year, half of them never talked to their lenders."
All I can say is wow!
As I've said many times before the single most important thing you must do when facing foreclosure is contact your lender. Not tomorrow... TODAY.
Trust me - your lender does not want your home. Most foreclosures involve homes with little or no equity. Lender's lose money when they have to acquire and resell the property. According to the story in Gannett, foreclosing on a home and reselling it costs a lender $59,000 on average. What they really want is for you to stay and pay. They will likely work out a payment plan or other solution with you if you contact them immediately.
To help you be better informed when you speak with your lender, Gannett News reports that the following five solutions may be considered by lending institutions as an alternative to foreclosure:
"Refinance: Allow the homeowner to refinance the current loan into a new loan. For example, you could refinance from an ARM into a fixed-rate loan.
Repayment plans: Long-term catch-up plans allow homeowners who have fallen behind to pay more per month on their mortgage, gradually bringing their loans up to date.
Loan modification/restructure: Agreement to change the interest rate or other terms of the loan
Forbearance: To postpone the interest or payments on the loan for a fixed period of time
Quick sale: Allows the borrower to sell the property for less than the loan, and consider the loan paid in full."
Keep these strategies in mind if you find yourself in this type of unfortunate situation. And always remember to CALL YOUR LENDER!
-Bill Burniece
posted by Bill | 12:41 PM
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