Home : Blogs : Margaret Rodgers,Realtor,Broker,AHWD : 360 East Tennessee

Avoiding Foreclosure The First Step Call Your Lender

A pending FORECLOSURE can be very stressful .

For Temporary problems ,options may include:

Forbearance A lender may reduce or suspend payments for a short time,after which another option must be agreed on to bring the mortgage current. Call Your lender

Reinstatement Lenders may discuss accepting a sum payment of the past due balance by a specific date. Call Your lender

Repayment Plan A borrower may be able to come to an agreement with the lender to start making regular payments,in addition to a portion of the past due amounts every month until the loan is up to date. Call Your lender

For Long Term problems, options may include:

Mortgage Modification If the borrower can make partial payment on the loan but does not have enough funds to bring the loan current theLENDER may be willing to change some of the Terms of the original loan.Call your lender

Examples include:

Adding the past due balance to the loan, Changing the interest rates,Extending the years to repay the loan .

If Keeping the home is not an option: Alternatives include:

Sale The lender may agree to a specific amount of time to find a buyer and pay off the loan in full.The borrower will be expected to obtain the services of a Realtor to market the property VERY AGGRESSIVELY.

Pre -Foreclosure SALE If the property's value is not enough to pay back the amount owed in full the lender may take less than the full amount owed,This option may also include a small amount of time for the REALTOR to find a qualified buyer.

Assumption The Lender may allow a qualified buyer to assume the loan even if the original loan states that it is non assumable .

Deed in lieu The lender may agree to let the borrower GIVE BACK the property and forgive the debt,This option may sound like the easiest way out but the borrower must have tried to sell the home for its FAIR MARKET VALUE for at least 90 days. This option may not be available if there are other Liens on the property.

Posted by Margaret Rodgers,Realtor,Broker,AHWD on 07/05/2007 10:18 AM

Comments (6)

pre forclosure, knoxville, tennessee, powell, karns, clinton, oakridge, norris

6 Comments on Avoiding Foreclosure The First Step Call Your Lender

the other thing to consider is making sure that if you're coming up short to call the lender to let them know when you'll be late and that you want to make sure they don't hurt your credit

if you can fend off the credit problems, you can usually work out a good arrangement to get back on the positive side.

Also - don't fall for those "foreclosure bailouts" where they buy your house, rent it back, and then sell it back to you in 2 years... it isn't that easy.

Lastly - if all else fails, get an attorney

07/05/2007 10:30 AM

by Boca Raton Florida & Boynton Beach Florida Mortgage Loans

Yes, yes, yes, call the lender! I can not stress that anymore. This will greatly help the situation no matter what the situation is. Great points.

07/05/2007 10:34 AM

by Open Home Mortgage - Georgia's FHA Loan Expert (Open Home Mortgage - Georgia FHA Loan # 1 Lender)

Especially in todays climate........ great advice

07/05/2007 10:44 AM

by Joe Adams (Major Mortgage USA/Branch Manager)

awesome advice Margaret. Too many people are scared or in denial...they have options and need to know they can exercise them before the problem unecessarily escalates.

07/06/2007 11:52 PM

by The Mortgage Oasis

“Call the lender” is great advice to doll out. However, once the distressed homeowner finally decides to painstakingly reach out to his/her lender and elicit fruitful contact, often times, the default homeowner must sort through a sea of teleprompts only Magellan himself could navigate, irrelevant departments staffed with employees who have no idea what their talking about or what your talking about, and/or narrow minded collection departments who don’t want to hear anything except, “I will be overnighting the full arrears today sir.”

After this wonderful experience I am certain the distressed homeowner just cant wait to pick up the phone and call back tomorrow. Is it no wonder why the number of preforeclosures, foreclosures, and bankruptcy’s are rising at such staggering rates?

This is why we as real estate professionals, with a duty to serve our community, must enter the forum and bear the load of this staggering and growing number of default homeowners and HELP this growing population.

Anthony

Jerseypreforeclosures1977@gmail.com

07/09/2007 08:31 PM

by Anthony Hodge (Law offices of Leon Matchin Esq./ERA Real Estate Agency)

Really good advice.. Don't wait and hope the problems will go away.. Call the lender and let them know you are having problems.

07/09/2007 08:36 PM

by My Favorite Mortgage.net - Matthew J Blum

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