“Don’t Be A Victim”
Avoid Foreclosure and Keep Your Home
A total of 3.2 million foreclosure filings from default notices, auction sale notices and bank repossessions were reported on 2.3 million U.S. properties during 2008, a 225 percent increase in total properties from 2006, according to Housing and Urban Development statistics.
The challenge to everyday families who typically pay their home payment on time is overwhelming. Double digit unemployment rates coupled with ever worsening economic conditions are leaving American families TAPPED OUT. If you believe you are at risk of losing your home (i.e., in danger of losing your job, debt payments exceed your monthly income, mortgage rate adjusting to a level beyond your ability to pay, etc.) it’s not too late to develop and implement a strategy because good solutions exist. The first step is to call your lender. It has been noted by many lenders that in the far majority of foreclosures, the homeowner neither tries to call their lender nor responds to the lenders phone calls.
FACT: Lenders would rather help you keep your home than foreclose because foreclosure is a lengthy and expensive legal process they want to avoid at all costs. No lenders want to be responsible for maintaining and trying to resell your home.
FACT: The Department of Housing & Urban Development (HUD), private mortgage insurance companies, and investors like Freddie Mac and Fannie Mae have developed different programs that lenders can provide and use to help.
FACT: Lenders have “work-out” loan solutions to help consumers avoid loosing their home.
So what do you do when you start falling behind on mortgage payments? The most important step you can take is to get help early from your mortgage lender. Call your lender to talk about your circumstances. Be prepared to provide details about your household such as how much money you make, all your bills and household costs such as food, electric, water and even pet expenses. Some options your lender may offer include:
- Deferment – If your problem is short-term they may bring your account up to date and “defer” late payment expenses to the end of your loan. This usually still requires a partial good faith payment.
- Repayment Plan — You may be able to catch up on missed payments by creating a schedule for repaying the past-due amounts.
- Refinance –Fixed 30 year rates are very low and often can provide the lower payment relief and fresh start that some home owners need. It is always beneficial to see if you can qualify for lower rates.
- Modification – In some cases, mortgage loan terms can be changed on a temporary or permanent basis to make the payment more affordable. This could include extending the term of your loan up to 40 years, reducing your mortgage interest rate and reducing or deferring your principle balance. Unfortunately, some lenders require that you be as much as 90 days behind on your payment before they will consider this option. However, lenders are developing creative solutions because they know that the more your situation gets worse than their chances of keeping you in your home go down dramatically.
Depending on your circumstances you may have several options offered to you. Ask for your options in writing and make sure you understand them before you make a decision. Consider discussing them with a third party such as your credit coach. Regardless of your situation, don’t wait too long because solutions often exist that can help you stay in your home.
FACT: “The worst thing you can do is procrastinate and do nothing.”
Either call (909) 942-2000 or write an email to Marlin@approvalguard.com or Jeff@approvalguard.com if you have any questions.
