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Facing Foreclosure? Put First Things First

By
Real Estate Agent with Solid Source Realty GA 320764

We know the threat of foreclosure can be emotionally debilitating. Yet now is not the time to cave in. Rather, now is the time for you to reach down into yourself and pull up that reserve of energy and resolve in order to fight back. If you've fallen behind on your mortgage, you don't have to just let the lender take your house. There is one strategy that is paramount in this situation. What is it? 

Talk to your lender.

This is the first and most important thing you should do.

 With so much pressure from the new Administration to staunch the flow of foreclosures, most lenders are more than willing to give you an ear and help you if they can, even in cases of Georgia foreclosure. In fact, I received a much anticipated call from one of my clients this weekend, giving me the good news of her successful loan modification. In spite of a foreclosure sale that was scheduled to take place several months ago, after an unsuccessful run at a loan modification. That effort only resulted in a HIGHER monthly payment (ludicrous, considering she had long been unable to afford her pre-mod payment), shortly followed by a foreclosure notice.

But just days before her scheduled foreclosure sale, the lender revisited her modification using the guidelines provided by President Obama's Making Home Affordable plan. Through many weeks of phone calls and faxes and with much patience and prayer, this client staved off the foreclosure and finally achieved a successful resolution. Now she can remain in her beloved home while paying a reduced monthly payment.  

Using these same guidelines, your lender may be able to recast your loan with more favorable terms and/or a principal reduction that makes your mortgage payment affordable and allows you to remain in your house. Ask them specifically for a Loan Modification under the Making Home Affordable plan.

So start by talking to your lender. And then, if that fails to resolve your dilemma, consider selling the property through short sale. It's usually a better alternative for your overall credit picture than is a foreclosure. And remember to call on a CDPE (Certified Distressed Property Expert), a REALTOR who specializes in sales situations like yours.

Learn more about loan modifications and short sales in Georgia.

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