Tips On How To Deal With Your Lender
A foreclosure is a legal action mortgage lenders use to seize and sell your property should you be in default of your mortgage obligations.
For home borrowers facing foreclosure for the first time, there is fear and uncertainty about their legal rights. The most common reaction is to treat your lender as the enemy and ignore their letters and calls.
While you should consult with a foreclosure defense lawyer before taking any action, you should also know that lenders under certain conditions would rather work things out with you. Quite often, a foreclosure defense attorney can help you with the process.
In the meantime, it makes good sense to be respectful to the lender and inform them you will be in communication with them as soon as you consult with your lawyer.
Missed Mortgage Payments
Don’t wait. Contact your lender immediately to acknowledge their requests for payment.
If, after consulting with a foreclosure defense attorney, it is your intention to negotiate with your lender, it is always better to do it as soon as possible. Lenders will not deal with you if you wait until the end of the foreclosure process to finally explain your situation.
Lenders want to know what has happened that has changed your financial situation and whether or not there is a realistic chance of you being able to resume your obligations on the loan.
Personal meeting preferred
If your lender is local, it is usually worth the effort to set up a personal meeting. This will demonstrate that you are serious about saving your home, and it will allow the lender to put a face to the file.
Remember, it is always harder to say no to a person that you have met and liked. Also, remember to be respectful and, if possible, not get overly emotional in these meetings. Instead, you want to explain the reasons for your nonpayment fully.
Make sure you are dealing with the actual lender
Make sure you know if you are dealing with the lender or a loan service they have hired to collect delinquent payments. While a loan service might be able to deal with non-critical matters such as a late loan payment or two, they are rarely authorized to negotiate a comprehensive workout with you once the foreclosure process has started. For that, you will want to go directly to your lender.
Don’t ignore the lender
Do not ignore their letters or calls. The lender is trying to determine the probability of your willingness to negotiate in good faith with them to stop the foreclosure process. A lender will assess in part your desire to make things right again and the level of your determination, honesty, and ability to resume your obligations under the loan.
In this regard, respond to every communication, written or otherwise, from your lender, and be sure to keep a written record of the communication.
Know the facts and keep good records
You must be prepared to negotiate. It is also important to demonstrate to your lender that you are honest, organized, diligent, and competent to negotiate a workout with them.
Make a file and keep all of your house payment records, loan documents, and written communication in one place.
It is also helpful to make a timeline for your reference listing your payment (partial or full) dates and their amounts, events, and important communications between you and your lender.
You will also want to create a written log of every phone call you make with the lender, including the specifics of whom you spoke with, the reason, and the action takes that need to be taken by you or your lender as a result of the conversation.
Home Foreclosure Defense Lawyer
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