Contacting Lenders While Facing Foreclosure

When facing foreclosure it is important to be in contact with the lender throughout the process. A vast majority of foreclosures may be avoided simply by contacting the lender before actions have been put into place to seize, and sell the home. Contacting the lender can be the number one key in foreclosure prevention. It could be the key to saving your home.

Do not ignore correspondence from the lender. This correspondence includes pertinent information that could be the key to keeping the home. Once a notice of default is issued, than the home is liable to go into foreclosure – therefore, ignoring this crucial piece of correspondence could literally cause your home to be taken from under your feet. Often, this correspondence is going to contain vital information about the status of the default loan. It is not the responsibility of the lender to contact the homeowner; the homeowner should be responsible enough to realize the payments are in default and contact the lender to make appropriate arrangements. Failure to contact the lender can result in a notice of default being issued and the home being seized and sold, to pay the remaining balance on the mortgage account.

Contact the representative with the lender that you have formed a relationship with, and explain the situation. Explain why payments have been defaulted, and the circumstances in which they have occurred. Often, lenders have more sympathy than the client would think and options are available to stop the home from going into foreclosure. Foreclosure is an expensive and lengthy process. It comes at a loss to the lender, and is avoided at all costs.

Prior to contacting the lender, ensure that all information and documents are readily available. Such documents include; income and expenses, account numbers for the lending agency, and the representative from the company that has dealt with your account in the past. Having this documentation ready is sure to expedite the process while allowing the lender to create the maximum amount of options available.

Use a housing representative company, if you do not feel comfortable contacting the lender. These agencies act as a liaison between the lenders, and the homeowner and can advocate for the homeowner and ensure that rights are being protected in the foreclosure process, and sometimes avoid foreclosure altogether.

While contacting the lender be sure to discuss options such as lowering the monthly payments, or adding the balance owing on to the remainder of the loan. Consider asking for any grants, or funds available to homeowners that have found themselves in unfortunate circumstances or if any affiliations that one holds can assist in the foreclosure prevention process.