Ten Stepping Stones to Take Charge of Your Mortgage…and Your Life

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If you are facing foreclosure, there are many steps you can take to help mitigate the potential damage to your life.  Don’t wait! Take charge, now.

1.     At the first sign that you are struggling to make payments, contact your lender and start working on talking to their “home retention team.” You will find it frustrating and aggravating, but just keep your goals in mind and try not to get angry with the person on the other line. If you lose it with that person, you lose your chances and will have to start the process over again. Try to be as nice as possible.

2.     If you are hitting roadblocks with the person on the phone, call the next day and start all over with a new person. Some are more helpful than others. Find the one who is on your side. Remember, the person on the phone is not getting paid very much, so the nicer you can be, the more incentive they have to help.

3.     The Home Modification Program, www.MakingHomeAffordable.gov  is another avenue designed to help. If you qualify, they may offer to lower your payments or change the terms of your current loan.

4.  Write down everything you are told and every person you talk to, including their phone number, extension, dates, and times.

5.    Have your paperwork in front of you. They will need to know your income, expenses, bank accounts, investments, any benefits, property taxes, insurance premiums, homeowners’ association fees, and anything else that might verify your eligibility to qualify for help. You will also be asked to write a letter of hardship as to how your circumstances have changed and why you believe you qualify for a loan modification. Be sure to look back to the loan application you filled out when applying for a loan. How have those numbers changed?

6.  You will have to submit all of these documents, so you will need to have your name, loan number, and last 4 digits of your social security number at the top of every page. You can make labels with all of this information on your computer to save yourself the difficulty of writing it on every page.

7.  After sending in your paperwork, follow up in a few days to make sure they received it and document who, and what department verified they had received it.

8.    Make copies of every single document. Banks are notorious for losing paperwork. You may need to send things 2 or 3 times.

9.    If you are not able to successfully negotiate a loan modification, consider a short sale. You can contact an attorney and an agent to get up-to-date information whether you would be a good candidate for a short sale, how you qualify, and any financial and credit ramifications there may be.

10.  Most important, talk to your attorney and your account to seek competent legal advice and consider all available options. Ask about debt forgiveness and incentives. Legal advice is the most important step in finding the right avenue to take.

Hang in there. Many people are in the same boat. Don’t feel embarrassed or guilty. Treat this as a challenge with a goal in mind…and visualize yourself as the winner.

I am a realtor in the Murrieta Real Estate Market in California, and look forward to hearing from other agents and people who have successfully done loan modifications. More ideas and experiences are welcomed!