Home : Blogs : Rosemary Brooks -Mother & Daughter (866)-750-8282 : Mother & Daughter Blog

What are the options?

Alternative to Foreclosure - Important Notice (sent to owner in pre-foreclosure)

There are alternatives to foreclosure, but you must take immediate action.

The letter below was sent to the owners by another department of their lenders. It appears that they are really trying to help owners out first before they foreclose. Is this going to be the new practice to attempt to help the owners in pre-foreclosure from the lenders in their effort to help the owners out a little? I sure hope so and I hope other lenders are going to pick up on this practice.

One of my clients received this notice and I wanted to share it with you because it just might be seen alot more coming from lenders to owners.

The letter read:

Your lender is very interested in discussing options that may help you avoid foreclosure, BUT YOU MUST TAKE IMMEDIATE ACTION AND CALL TODAY. Your lender may require certain financial information and may require access to the property to determine the property's value prior to qualifiying you for these programs.

If you would like information regarding the options available, please contact _________________________ at _____________ so we can put you in touch with your lender's Loss Mitigation Department.

If you would like to obtain an exact figure as to the amounts needed to cure the default or pay the loan in full, foreward your request for reinstatement figures and/or payoff quotes to: (name of company here)

You may wish to consult a credit-counseling agency to assist you. The Department of Housing and Urban Development (HUD) can provide you with the name and address of the local HUD approved counseling agency by calling their toll-free hotline at 800-569-4287.

Notwithstanidn the fact that your property is in foreclosure, you may offer your property for sale provided the sale is concluded prior to the conclusion of the foreclosure. Be sure to notify _________________ or your lender in the event your property is listed or under contract for sale or the foreclosure mat take place notwithstanding your expected sale.

This notice is sent for the purpose of collecting a debt. this firm is attempting to collect a debt on behalf of the holder and owner of te note. Any information obtained by or provided to this firm or the creditor will be used for that purpose.

In other words, time is of the essence!

My clients signed an authorization letter for me to contact the lender for them. Once the lender faxes me their requirements, financial forms and payoff information etc., then I will go back to my client and hand him the information and let them make the best decision for their family and situation. I do appreciate this letter to the owners because it shows that not all lenders are out to just foreclose - they are offering options to the owners.

Have you seen or heard of any other lender sending a letter out like this and what is your opinion?

Posted by Rosemary Brooks -Mother & Daughter (866)-750-8282 on 07/15/2007 03:07 PM

Comments (9)

Originally posted at: Mother & Daughter Blog: What are the options?

9 Comments on What are the options?

JUL

2007

Great information Rosemary! Thanks for sharing! There are so many posts now regarding foreclosure and short sales, it's really kinda sad! Actually, it's very sad!! The more we can help these people in the down times, the more it will help us in the "UP" times!! B-)

Brad, hi and yes you are correct. I was so happy to see the lender is stepping out a little and trying not to just be the hardball, don't care, won't approve lender and show that they are aware of the problem of people not having options or feeling that they don't have options when in pre-foreclosure/default status.

My clients whom I just met yesterday, were so appreciative that I was willing to do this service for them (at no pay) so that they will know what the lender is expecting and it does "soften" the communication between them (so afraid and confused on what and how this is going to affect their family and lives) vs the lender.

Rosemary,

Thanks for the post. This communication between mortgagor and mortgagee is quite common. This was especially true before prices fell and people were sitting on substantial equity.

William - yeah but with the short sale, this is the first one I have seen. I wonder why.

Rosemary,

It is still cheaper for the lender to negotiate a short sale, as oppose to foreclosing and incurring the foreclosure expenses on top of selling the property for less than what is owed.

William - so true. But they act like it is a pain to give it up.

They can be so cold sometimes, I know, we see this all too often in the business! Hang in there, things don't always go our way, but someone's always watching over us!! :-)

JUL

2007

"Have you seen or heard of any other lender sending a letter out like this and what is your opinion?"

This is a variation of a typical boilerplate letter which has been used by lenders' loss mit/collection departments for many years. The words may differ slightly, but all convey a basic menu of options requiring mortgagor cooperation and compliance.

The criteria used to trigger the letter is determined by the lender's internal collection policies and can vary from lender to lender.

David this was the first that I had ran up on while doing short sales. I know that the lender in typical situations will send out something to indicate that they want to help you get back on track and once you call and give all the information to them, they usually don't have anything that fits your situation --- except you paying the whole thing up or selling the property.

So when I saw this letter sent to my client, I was so hoping this is their way of reaching out do the market foreclosure situation,but it could very well be a boilerplate letter and does the same as it has in the past.

I hope soon someone somewhere will come up with something that offers relief to these people that are in these situations before we have a homeless situation that the mass cannot handle.

Thanks for your comment. I will know more about how serious this letter was intended later on in the process, because my client does not have the money to catch her account up.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?