We do not fail when we fall unless we chose not to get up
again. There have been many homes go into foreclosure. This is not considered a
failure when you have exhausted all opportunities. Sometimes no matter what we
do we can not stop the inevitable.
It has been difficult to make the last few months payments
on your home. Your mortgage company refuses to accept less than the amount due
and now you have received a notice to foreclose unless loan is brought current.
It is always an emotional blow and can be overwhelming at first sight. The
notice does require your attention but first you must step back and take a big
deep breath. Do not immediately pick up the phone and call your mortgage
company. Calling when you are in such an emotional state won’t get you
anywhere.
Now that you have collected yourself, it’s time for a
reality check. You know in your financial state there is no way that you can
afford to keep your home. There is an option you want to check into before just
throwing in the white flag. Loan Modification… most mortgage companies offer
it, but sometimes you have to request it. A loan modification is a program
where the mortgage company modifies your mortgage loan based on your finances.
This will lower your payment to an amount you can afford. This is not a
refinance so you don’t need to worry about what your credit looks like or
having a down payment.
Call your mortgage company and ask who you need to speak
with to get a loan modification packet to fill out. Once you get to speak with
someone from that area ask them what the requirements are and how long the
process takes. Be sure to keep track of the name and extensions of the people
you talk to and what they say.
A loan modification (if your lender offers the option) is
never a guaranteed program. In some cases the mortgage can be lowered to an
amount you can afford. This can be done either by a short term modification
(where payments return to regular amount at a set time) or by a modification of
complete terms of mortgage (for the life of the loan). Although once the
modification specialist reviews your file it there may not be anything they can
do. The specialist is only able to adjust the payment so much. So if your
finances can support even the lowest amount, you may consider selling the home.
The loan modification is just one option you have. Be sure
to talk with your lender and find out every workout plan they have available.
Exhaust each option if you have to. At least then when it’s all said and done.
You will have either saved your home or can say you put up a fair and
reasonable fight.