Do you remember when the iPhone first came out? About a week before it hit store shelves, an on-line sports book published odds claiming that 1 in 20 shoppers would be trampled to death while trying to get one. Coincidentally, those are also the odds in any given week that someone will be behind on their mortgage payments.
Are you one of them?
If you are, you realize that the stench of fear permeates your being, as you approach the unfamiliar territory of foreclosure. You don't have to be a bum or a deadbeat to get into this position. It can be as simple as missing a few days of work or having a mortgage payment or two wind up in the Dead Letter File at the post office. Either way, your payment's late or you're in deep doo-doo with your lender. Now your lender's threatening you with the Big "F" -- foreclosure.
The last thing you want or need is to face the stigma of foreclosure, so you're seeking any port in a storm. The best way to get out of this mess - if you can come up with the cash - is reinstatement. The concept is simple: Pay your lender what you owe. In return, your lender will call off the hounds and allow you to continue with your mortgage contract as if nothing has happened. This could be a practical and doable option if your problem is a short term financial hiccup.
In practice, however, it could be a pretty tall order because you'll be required to catch up your payments - with late fees - in one single lump sum payment. Most lenders stipulate in your contract that partial payments won't be accepted. While it's possible to pay less than the full balance of your back payments, it isn't as likely an outcome. If you can work this out, you'll need to get it in writing and the only chance you have of making it happen is if you can satisfy the lender that the conditions that led to your being late won't be repeated. If you're able to convince your lender to accept a lesser amount, it will likely take an act of Congress and your first born child. In addition, this sort of an arrangement will take some time to negotiate - time you probably don't have.
When you're in this precarious financial position, you're at your lender's mercy. It's just you and your lender. Instead of being intimidated or bullied into making a rash decision that could have a dramatic impact on your financial future, you should enlist the help of a trained professional, someone who will be in your corner, looking out for your best interests - not the bank's.
I'm talking about a real estate professional.
By calling a trained real estate professional, you'll get sound advice from an objective advocate that will act as a counterbalance to the power of your lender. This advice won't cost you an arm and a leg. As a matter of fact, it won't cost you a thing. Then you can decide for yourself whether reinstatement of your mortgage is the best course of action for you. Then maybe you can consider getting an iPhone - but only if you're willing to run the risk!
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