Avoid Foreclosure Consequences

Avoid Foreclosure Consequences

Contact your lender

One of the first steps in successfully avoiding foreclosure is to call your lender. They may have loss mitigation options that they can discuss with you. Keep in mind that lenders are not in the business of owning real estate and it is in their best interest to come up with ways to help you keep your home including loan modification if necessary.

Understand your rights

Consumers often do not understand their rights when it comes to foreclosure. In addition to the written notification of foreclosure, consumers can and should, ask for their original loan documents if they do not have a copy of them. This will help a homeowner better determine what loss mitigation options might be available to them. Lenders are required by law to provide these documents if they are requested.

Create a profit and loss statement

When you are interested in discussing a potential loan modification with your lender, make sure that you gather the necessary documents. These will often include your most recent pay stubs, proof of other income as well as a complete list of all assets and liabilities. Create your profit and loss statement so that you can discuss potential options with your lender to avoid foreclosure.

When lenders are not cooperating

In some cases, the collections department of your mortgage company may not be willing to negotiate with you or, you may feel they are not negotiating in good faith. If this appears to be the case, it may be a good idea to contact a reputable loan modification attorney to assist you. Not only can they assist you in obtaining documents from your lender, but they can also help you with negotiations if they become necessary.

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