I'm late on my mortgage or I'm about to be .... What do I do now? There are lots of companies out there who offer to stop your foreclosure! Stopping foreclosure, or loss mitigation, has become a huge business the last year. It's not a new industry, its been around for quite a while. But other than the occasional foreclosure, there were only a few people who actually did this for a living and understood how to work in this complicated and often frustrating industry. If you're behind on your mortgage and facing possible foreclosure, don't wait until it's too late. What does that mean? It means if you're just one month behind or about to be, this might be a good time to start talking to your lender about what your options are. They may be willing to work with and they may not. Some lenders are voluntarily offering refinance deals to their clients without you asking. They are taking away pre-payment penalties and even adjustable loans, making them fixed at a reasonable rate. Many lenders will offer an opportunity for you to catch up what you're behind by either allowing you to pay additional money each month for up to 18 months or put it on the back end of your mortgage, but this is rarely a reasonable or workable option. Other lenders are being stubborn, refusing to assist their borrowers and seem determined to collect the full amount owed in arrears or foreclose if you're behind.  You have two choices to make - either try and deal with your lender yourself or use someone who's experienced and knows how to work out the best option for you. Dealing with your lender yourself isn't always easy. You have to speak to the right person in the right department, and get them the information they need to help you get what you want. What does that mean? It means, the lender is going to require specific documentation to decide the different options they are willing to offer to you, if any. Knowing what to say and who to say it to is very important. It doesn't mean you can't do it yourself, but it does help to have someone who's experienced do it for you. Most importantly, you need to have a great reason for falling behind, but most of all you need to have a way to make the payment now. If you no longer have the income to make your mortgage or anything close to it, it may be time to consider your other options.
If you don't have the ability to save your home or the bank says you don't qualify, you may have a couple of other choices including a Short Sale, which means to sell the house for less than you owe and the bank accepts the offer as payment in full, or do a Deed In Lieu, which means you're giving the house back to the bank saving them the trouble and expense of foreclosure (not every property qualifies for this). If you choose to short sale the property, get yourself an experienced Realtor to help you. The bank will require a Realtor be involved to put the house on the market, so find a great one in your area who is familiar with short sales. Also, I'm told by many credit experts, a short sale is easier on your credit than a foreclosure. Most importantly, do something. All you have to do is turn on the television to discover you're not alone. There are many professionals there to help you. Do your homework, make some calls, pick a reputable company or Realtor to help you and the sooner the better. Not everyone is out there to steal your house. Investors can and do often do the right thing. Make sure you understand everything you sign. If I can help you during a difficult time, don't hesitate to contact me either by email at LasVegasExpert@yahoo.com or 702-595-7380. |