Proactively Call the Bank
The best strategy to avoid foreclosure is to call the bank before a payment is missed. Borrowers, who let the bank know they have lost their job or face some other serious financial strain, will be more likely to get relief if they call before they are behind in their payments. While there are lots of items to be concerned with when a job loss occurs, “call the mortgage company” should top the list.
Compose Assets and Liabilities, Get Your Paperwork ready
Think like a business here. The faster a borrower can provide the bank or mortgagor proof that he/she faces financial hardship, the easier it will be to get some relief. Taking a half day to gather all sources of income and sources of expenses will go along way. Be prepared to send out multiple copies of the latest documentation (i.e., paystubs, bills, canceled checks, etc.).
Keep Records of Bank Contacts
Be patient, but persistent once the information is sent to the institution. Borrowers should keep a regular record of exactly who they talk to at the bank and when they called them. A good paper trail can help the bank stay on to of their records. Don’t be surprised if the people at the bank are frustrated and overwhelmed. Many banks were not prepared for the sheer number of people that would be calling and requesting modifications.
Be Open to All Options (Short Sales, Deferred Interest, Reduced Rate, etc.)
Most banks are willing to work with borrowers in good times, so it should be no surprise that they are willing to offer borrowers a variety of solutions to their problem. If the set back is temporary, they may consider changing the loan to interest-only for a period of three to six months. If it seems longer-term, the bank may suggest a short sale. Be open to all options. Even if a borrower has to sell their home at the bank’s request, they still maintain a good credit rating and have the opportunity to move to a place that they can afford.
Always be patient and kind with the Bank and to your Realtor. Remember, the borrower needs the bank much more than the bank needs the borrower. Additionally, banks are understaffed and that staff is definitely overworked. Be willing to explain the situation as many times as necessary and be timely with documentation. These strategies should help most troubled borrowers avoid foreclosure.
Do you want to short sale your property and never pay the bank another penny? I can help you do that.
Send me an e-mail at email@example.com. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (770) 866-2561.
Discover how other sellers successfully completed a short sale and request a free consultation .
Thinking about a loan modification? Our GA Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender.
Thanks for reading this, Roland Lorans.
Roland is a Real Estate Agent at Better Home and Gardens Real Estate Metro Brokers .
Phone: (770) 866-2561 or 404-843-2500 firstname.lastname@example.org.
View My homes for sale at SaveMyHome.
Roland Lorans specializes in loan modification assistance and short sales in GA .
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