When you’re deep in credit card debt and missing payments on your mortgage, your first instinct is to hide from your creditors and mortgage lenders. However, before home foreclosure becomes imminent, reach out to your lender and clearly explain your situation. Once the due date for your mortgage payment has passed, it’s only a matter of time before your lender knows you’re in default. Unlike credit card collectors, mortgage lenders usually are much less aggressive early in the process. However, don’t wait for them to contact you; it’s better to act preemptively and call them right away. If you leave it up to them, they may not end up contacting you for several months and by that time it will be much harder to resolve the situation.
And once you decide to contact your lender, be sure to clearly explain your situation and ask if they have any suggestions. Remember that lenders interact with defaulting customers daily and can usually offer trustworthy advice. In addition, as a rule, lenders aren’t eager to pursue foreclosure on defaulted homeowners because the process is expensive and time-consuming for them too.
If you are able to reach an agreement to prevent foreclosure with your lender, make sure they provide an agreement in writing to make sure you both live up to the agreement. And be sure to have your agreement reviewed by a real estate attorney like Tim McFarlin or members of his experienced staff at McFarlin LLP.
Our attorneys have a comprehensive understanding of foreclosure and the options at your fingertips to prevent it. As a result, allow a knowledgeable lawyer to step in and help you sort through your prevention options.