Foreclosure On Your Horizon? You Do Have Options.
Let’s cut right to the chase. Imagine you’ve let your mortgage payments slip and now you are threatened by foreclosure. The first question that comes to mind is what do I do now? The answer, of course, begins with the reassurance not to panic. You have options regardless of how bleak things may initially appear. In today’s post, we’ll take a look at some of these options.
Just last week a coalition of the nation’s six largest lenders met up with the goal of giving delinquent homeowners an additional month’s breathing room before proceeding with foreclosure. This comes after the interest-rate freeze for homeowners with subprime adjustable rate mortgages.
Customers who don’t fit the criteria for these programs still have options. In fact, the truth of the matter is that individuals who don’t qualify for the lender’s direct efforts to help may actually have more options to choose from. The best advice is to either contact your lender directly or (and we strongly recommend this option): contact a housing counselor.
Lenders have the ability to make decisions based on homeowners’ unique financial situation, even if you’ve already fallen behind.
Your lender is likely willing to collaborate with counseling agencies to make sure they are properly equipped with the information needed to develop a plan of repayment unique to you. Bank of America, JPMorgan Chase, and Citigroup all admit that they commonly work with such agencies to gain such client knowledge. Citigroup, in fact, set up a special team within its Office of Homeownership Preservation just to work with counselors.
You may be surprised to hear that lenders prefer when delinquent borrowers come to them through counseling agencies on account of the fact that these agencies come equipped with necessary information from the borrower (you).
Keep in mind that a housing counselor knows the process and has an established relationship with the lenders. They can aid you in working out a repayment plan specific to your needs. Analysts claim that these days are some of the most lenient as far as foreclosures are concerned. If you’ve fallen behind, don’t be afraid to put this reality to work for you.
