What would you do if you couldn’t make your mortgage?
By Gil Gross - Real Estate Today Radio ·
February 12, 2009 ·
5 Comments
Let’s point out one of the biggest mistakes homeowners make when they think they’re facing foreclosure: Not talking to their lender. More than half of the people who lose their home to foreclosure never contacted their lenders when they realized they were in trouble.
Remember that your lender will lose money if you foreclose. The mortgage holder has a financial interest in you staying on top of your payments. So give them a call—sooner, not later—and let them know that you’re not just trying to walk out on your loan. They may help you refinance, they may work out a repayment plan, or even postpone your payments for a short period.
So take a deep breath, be honest, and give them a call.
Thanks for posting the article, was certainly a great read!
I am preparing to teach a course on foreclosure to Realtors…in doing my research, I ran across a statisic from Freddie Mac/Roper survey, that 62% of homes that go into foreclosure, the homeowner preferred to use a third party to communicate to the lender for them. Solution to the problem. Realtors. Realtors could reach a great portion of that 62%. Why? Most homeowner used a Realtor to purchase their home and most homeowner look to experts (Realtors)to help them keep or shortsale their home. With the greatest capicity to reach that 62% Realtors are a viable solution to bridge the gap between homeowners and the homeowner’s lender. If we campaign to homeowner and lenders (use us) then we heavily reduce the number of distress homeowners that do not communicate with their lender, and this in return limit the number of foreclosures and increases the number of homeowner that can get a viable workout solution. Whether it is a modification, forbearance or shortsale.
But what most agents face is how slow lenders are to work out a solution and it maybe that they are overwhelmed. But when you are trying to shortsale a property, time is an enemy. The lender is requiring the property to be marketed for a length of time and two when the offers do come in it takes too long to know which offer is accepted and therefore many offers are withdrawn. There needs to be some order to the madness that enable Realtors to do their jobs with more effiency.
Great entry, Yes call your lender asap. And keep calling.
Great topic…certainly a timely topic!
Unfortunately the new Obama Housing Plan will only help a very small percent of the homeowners who are upside down in their homes. The simply fact is that the markets are continuing to slide and there doesn’t seem to be any real reason to believe that will slow anytime soon.
Calling your mortgage company is the best first thing to do…but, the lenders and servicers are completely overwhelmed
with calls. The best thing for agents to do is learn how to mod their own loan (and then offer that service to others for a profit) vs waiting around for their lender to call them back. In most states agents are already doing mods for a profit. In this market, its a great way to help people save money…and make a great living. Check this out; http://www.AgentLoanModSecrets.com
That is a free video that shows agents how to get started doing mods.
Hope this helps.
Tim
Keep making your mortgage payment if possible. Under “Home Affordable” it will allow help if you maintained your mortgage payments & your LTV has not exceeded 105%, I know that will not benefit all homeowners. If not you will have the option for a loan mod.
Here is an alternative website: http://www.hopenow.com/