Avoid this disaster.

Mortgage and Lending with Essex Mortgage Company

Things to avoid while trying to save your home.

Many homeowners who are trying to save their home from foreclosure try making contact with the lender on their own after the situation has gone too far.  They put themselves in the position of having to agree to and sign any agreement put in front of them.   Here are some things to avoid while attempting to handle the problem on your own: 

  • Don't agree to the first thing your lender tells you to do. It may be tempting to end your misery by signing a payment arrangement sometimes called a forebearance agreement, without giving much thought to what you are doing.  The lender is going to put forth a plan that is more beneficial to them than to you.
  • Don't argue with the lender. You don't want to antagonize the lender when you are trying to get them to agree to what you can afford.  It can be frustrating trying to navigate the complicated process the lenders servicing department has created.  It is a large system and difficult to move. 
  • Don't be dishonest when negotiating. You need to be truthful whether or not you plan to do the negotiating yourself, use an attorney, or one of our services.
  • Before you use any service, make sure they are confident they can help you. Don't make a deposit, or sign any agreement for loan modification services unless the entity you are dealing with can show you why they believe they can help you.
  • Understand what your lenders requirements are for modification. You may have been approved for the loan modification, but the transaction is not over. Your lender most likely will need copies of your bank statements, W2s and other paperwork. It is up to you to get it to him or her as soon as possible. Failure to submit certain qualifying documents could cause your transaction to stall, and this could be disasterous for you.

Comments (4)

Anne Hensel
South Beaches Real Estate Professionals - Saint Petersburg, FL
Realtor - Broker - St. Pete Beach, Treasure Island

Great information and advice, most people are intimidated when it comes to this scenario

Anne Hensel

Jun 22, 2008 11:35 AM
Jerry Gensel

Thank you for your comment.

Jun 22, 2008 11:38 AM
Scott Perry
Jireh Business Information Solutions, Inc. - North Huntingdon, PA

Great post, Jerry.  Your first sentence says it all: "Many homeowners who are trying to save their home from foreclosure try making contact with the lender on their own after the situation has gone too far."

Having "been there, done that" myself, I can tell you that the best thing to do in this scenario is to get out ahead of it and deal with it early on.  Most lenders these days are "running scared" in the wake of the subprime mess and seem more willing to work with delinquent borrowers rather than risk being saddled with an inventory of undervalued properties, or worse, running afoul of the regulatory bureaucracy.

Thanks again for your insight.


Jun 22, 2008 11:49 AM
Jerry Gensel

Thank you for that.  I have been in this business for thirty years and it has never been more insane!

Jun 22, 2008 11:52 AM