Those who are facing foreclosure are willing to do just about anything to save their home. Many do not realize that they may be able to do just that if the correct actions are taken. At first glance, contacting the lender may seem the last thing that should be done. However, the complete opposite is true. The lender is actually the first person you should speak to, and this should be done as soon as you realize that you have financial problems.
It is understandable that a homeowner would not want to contact the lender. It could be embarrassing to discuss financial problems, or the homeowner may be holding out hope that the money needed will come from somewhere. Whatever the reason for not wanting to make this call, it should be done. It is possible that the lender will be able to help, and this call may actually be the one thing that helps you keep your home.
It is a common perception that the best interest of the borrow is not really considered by the lender. While it is true that lenders do want to be paid the money that is owed to them, foreclosure does not benefit the lender. Many lenders will go to great trouble to avoid having to go through the foreclosure process. Lenders certainly do not wish to take homes away from homeowners who have fallen on hard times but have otherwise been model customers. For these reasons, your lender should be the first place you turn should foreclosure be looming.
The Notice of Default is delivered to the homeowner after three consecutive monthly mortgage payments have been missed. Action on your part should be taken well in advance of receiving this notification. As soon as you realize that you will miss a payment contact the lender and let them know why this is happening. The lender may be willing to change the payment schedule, or even lower rates so that payments are rendered more affordable for a period of time. Forbearance may be requested. If granted, this would eliminate some penalty fees that occur because of default, or fees associated with refinancing.
When contacting your lender, first explain to them what your current financial situation is. After you do this, ask what payment alternatives may be available to you. Procrastination is the enemy of those who may face foreclosure. Procrastination may allow problems to mount and grow even worse. Act quickly in order to find out what your options are. Most lenders want to help and will be willing to work something out with you if you have established a good history of making timely payments in the past.
