Underwriter Training : Helping Consumers Avoid Foreclosure

Written By: Stacey Sprain

There’s no question credit underwriting guidelines have tightened. So much so that a person pretty much needs excellent credit just to be able to refinance to a lower interest rate nowadays. Occasionally, I receive inquiries from people asking for advice on what to tell former clients who are facing foreclosure due to financial struggles because we have few if any lending options remaining to help them. Very recently the request for advice hit very close to home when a member of my own family informed me he was on the verge of foreclosure. I’m sure there are many similar circumstances shared among us. Never have I felt so helpless as when I realized I have all the power to assist with the financing end of things but am virtually helpless when it comes to helping struggling homeowners after the fact. In the past I’ve been able to help people avoid financial perils before their credit suffered. But those days have certainly gone by the wayside.

After my uncle informed me of his financial difficulties and lack of luck finding stable employment, I started researching. I was determined to find resources to potentially help him in his time of need. When a man in tears stands over six feet tall, near 300 pounds, with five children and a farm on the line, you tend to want to drop everything you thought was a priority in your own life to try and find ways to help. I was able to find a lot of great information and resources for him, many of which are listed below.

The truth is that with the enormously high rates of foreclosure out there, bank and financial institutions don’t want to result to foreclosing on people’s homes unless it’s absolutely necessary as a last resort. The time delays of the foreclosure process itself, the legal fees and declining market values of the properties give the banks the incentive to try and work out options with the homeowners to avoid the foreclosure process when at all possible. My uncle was fortunate enough to have worked out a solution with his bank. I suspect that the opportunities are there for many other struggling homeowners to do the same but they simply don’t know where to turn. Please pass on the information to anyone out there who might benefit. It’s worth it if it helps a single struggling homeowner get a good night’s sleep!


About The Author

Stacey Sprain - As an NAMP® staff writer, Ms. Stacey Sprain is currently a NAMP® member in good standing, and is a NAMP® Certified Ambassador Loan Processor (NAMP®-CALP). With over 15+ years of mortgage banking experience, Stacey is also a Quality Control Manager for a major mortgage lending institution. If you would like to become a volunteer writer for us, please email us at: contact@mortgageprocessor.org.

 


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