How to Try and Avoid Foreclosure

Written By: Joan Ewing 

Hello everybody – Keeping busy? I feel the market is definitely picking up; however, there are still many people out of work and needing help to avoid foreclosure on their home. So this week, we are going to go through the process of how to try and avoid foreclosure.

When borrowers are in debt whether it be credit cards or mortgage payments many times they avoid answering the telephone because they do not want to talk to the collector on the other end. This is called the ostrich syndrome – if they put their head in the sand and not answer the phone, the collector will go away – WRONG!! Just the opposite is true especially these days when lenders really do want to help their customers. Foreclosures are really expensive for lenders – they do not want to own your home, however, they can allow you to live free, if you refuse to talk to them, they have no choice but to foreclosure.

So – you know someone who is a few months behind in their mortgage (banks prefer to work with borrowers who are one or two payments behind) The further you are behind the fewer options are available.

The first thing to do is contact your lender, explain your circumstances, why you are not able to make your payment. Lenders are also people - they too could be having a difficult time making their own payment – they will listen and hopefully have a solution to your problem. But you must call and ask.

When you call your lender, you should have the following information handy – Your account number; be ready to explain your circumstances of not being able to make your payment; have a paystub, because the person will ask about your current income. Have your overtime hours been cut, have you taken a cut in pay – be honest.

So you feel you have done everything right – called your lender explained your circumstances and your lender is promising to call you back and never do – You are at your wits ends – and feel like nobody is working with you and you need help.

There are some remedies that the have been set up.

FHA Insured Loan – your lender MUST be following FHA servicing guidelines. If your lender will not speak to you, your may call the FHA National Servicing Center toll free at (888)297-8685. Be ready to give the full names of all persons listed on the mortgage, including address of property. If by chance you have your 13 digit FHA case number, this can be found on your Settlement Statement in the upper left hand corner.

VA Insured Loan – Visit the VA Foreclosure Alternative page. Google – the site. If you have additional questions talk to a Loan Representative.

Conventional loans – If you have a conventional loan talk to a HUD approved Housing Counselor or call 800-569-4287. They may be able to help you with your lender. If you need additional help contact Hope Now – 888-995-HOPE and ask for assistance working with your lender.

All of the information was obtained on-line; however, when people need help many times they are distracted to the point they cannot find the help they need. So – if you know anyone who needs help with avoiding foreclosure, please pass this blog along to them.
Until next week. Keep processing – More later.


About The Author

Joan Ewing - As an active FHA DE Underwriter for the past 15 years, Joan Ewing is a proud NAMP® Certified Ambassador Loan Processor (NAMP®-CALP). Joan brings years of FHA Government experience to her writings, letting her readers tap into her underwriting knowledge base. If you would like to become a writer for NAMP®, please email us at: contact@mortgageprocessor.org.

 


Opinion-Editorial (Op-Ed) Disclaimer For NAMP® Library Articles: The views and opinions expressed in the NAMP® Library articles are those of the authors and do not necessarily reflect any official NAMP® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMP®. Nothing contained in this article should be considered legal advice.