Special offer

Avoid Foreclosure with a Workout Plan

By
Real Estate Agent with QUEST REALTY SERVICES
When the foreclosure of your home is imminent, it can be a frightening situation. But if you happen to be facing foreclosure, it's important for you to contact your lender, have an open, honest discussion about your difficulty, and then try to work with them to come up with a short-term alternative plan that will get you back on track when your financial situation improves. Currently you'll generally find your lender to be sympathetic and eager to help.

Surprisingly, a Freddie Mac study showed that borrowers who contact their lenders and work out a customized payment plan can reduce their chance of losing their home to foreclosure by about 80 percent! Among low-to-moderate income borrowers, the figure is somewhat lower, but it's still right around 68 percent. Either way, those figures represent a significant chance for you to save your home and they are options well worth pursuing.

The Wells Fargo Co also did a study that mirrored the Freddie Mac findings, but the truth is that most lenders will be similarly helpful when a borrower contacts them and lays out their situation so an greement can be arranged.

Facing foreclosure can be one of the worst times in a person's life, but you can save your home if you're willing to talk openly and honestly with your lender to find a short-term solution to your current financial woes.

Don't forget, your lender doesn't want to own your home, so they'll generally be glad to work out an arrangement to help you keep it. If you want to get some ideas about what kinds of arrangements can be made, call your lender and ask them about a "Workout Plan."

If you're late with a mortgage payment, gather all your mortgage information, figure out what you can do to make up past payments, and call your mortgage company.

Comments (1)

DDR Realty
DDR Realty - Newburgh, NY
Orange County NY
I agree that is is important for homeowner, who are in pre-foreclosure, to contact their lenders to work out a payment plan. Lenders generally do not want to foreclose on homeowners but the do need to get payment. When homeowners, who are in this situation, communicate with their lenders the chances of avoiding foreclosure are greater.
Oct 26, 2007 12:52 PM