Credit Yogi

Mortgage Foreclosure Facts

You have probably exhausted every possibility that you could think of to stop the mortgage foreclosure process, but all have failed to prevent it. 

Mortgage Foreclosure. How Best To Address Mortgage Foreclosure With Your Lender.

Facing a foreclosure on you current mortgage can be an extremely trying situation. You have probably exhausted every possibility that you could think of to stop the mortgage foreclosure process, but all have failed to prevent it. So now you want pull yourself together and get through this problem as best you can.

What To Do First

First of all, try not to panic or feel guilty. You most likely did all that you could, and now is the time to regroup and be proactive in handling the problem. You may have more time and options than realize, credit-yogi can consult you about all of your options. The mortgage foreclosure process can take six to twelve months, so you can take a deep breath and try to approach the situation as calmly as you can.

You may be surprised to hear that your lender is not your enemy. Often times lenders really don’t like to go through the foreclosure process. The process is time consuming, and costs the lender money every day that nothing is being solved. Then if the property is foreclosed, the lender must now try to sell the property and recover what they can from the property. This is more difficult in a down market. Therefore, your lender should be quite open to working with you.

Take The First Steps

You can be proactive and contact your lender as soon as you realize that there is trouble coming. You can be completely open and honest with your lender, but you may want to seek second mortgage foreclosure help from a professional first, which you can explain your financial difficulties and the problems in your life that have brought this situation about. A credit-yogi advisor can help you with any attempts by the lender to contact you or to inform you of the status of the foreclosure process; tracking all phone calls and letters. This can help you face the situation openly and honestly, and give the lender no reason to mistrust you. It will also help your lender become aware that you are honestly trying your best to work your way through this difficult situation.

Having said that, you may want pay attention to the legalities and to find out from your state or from a lawyer what all of the legalities are that apply to both you and the mortgage company. This way you can make sure that you follow all of the legal requirements that are upon you. You can also watch your mortgage company and make sure that they are following the legalities. Many lenders are overwhelmed by the rising amount of foreclosures, including federal national mortgage foreclosures, and utilize outside contractors to pursue the process for them. Some of these contractors are less than fully reputable. A legal error on their part counts the same as a legal error made by the mortgage company, and could result in considerable financial benefit to you.

You can consider adopting a healthy sense of skepticism if you are told by the lender or their representative that you must do something. You can find out if you legally have to do what they ask. However, it’s probably not a good idea to tell your lender that you are watching them. That may quickly poison the good relationship that you are trying to keep with them

Find Your Ideal Solution

Trying to achieve a forbearance agreement with your mortgage company is also an option. In such an agreement they may agree to accept only interest payments until you can get back on your financial feet. Without help it may be unlikely that they will accept an attempt to modify the mortgage, but there are many third party advisors or lenders who may help you. Given changes in the home equity loan rates and the ability of these companies to adjust the term of the mortgage, you might be pleasantly surprised at how much such a company could help your situation. Ideally, you could be in a position to get a new mortgage after foreclosure.

If you cannot achieve a refinancing, perhaps because face a reverse mortgage foreclosure or your mortgage is upside down, talk to your advisors about the possibility of a short sale. While this is a losing proposition on the face of it, savings over the costs of riding the process out to the bitter end may make this an attractive option.

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