Worried about foreclosure?
WHAT TO DO IF YOU CAN NOT MAKE MORTGAGE PAYMENTS
Job lay offs, strikes, divorce, unemployment, sickness, marriage separation and company down sizing all have one thing in common, they contribute to the problem that could effect a home owner’s decision to not pay the scheduled mortgage payment. Also the interest rate of a mortgage may adjust to a higher rate and many borrowers may not be able to provide the additional funds or refinance into a different loan. A mortgage is considered to be the largest and most important bill to pay, however the mortgagor may not have enough money to pay this monthly bill and provide food for their household. Therefore with a major change in the monthly income a home owner might miss one or several mortgage payments, thus the foreclosure process is imminent. So what can you do if you can not make the mortgage payment?
Many home owners are faced with selling their home if the payments become to hard to meet and forced to rent. Others might give up and file for a bankruptcy or allow the home to be foreclosed by the bank, but this can damage your credit. What you can do to save your home and credit is contact your mortgage institution and ask about their work out plan or loss mitigation program. Loss mitigation is designed to assist the mortgagor to regroup and continue making the mortgage payments. Most lenders and mortgage institutions have a separate department set up to assist the mortgagor(s).
The loss mitigation department or the work out department will let the mortgagor re- instate the loan with the company and provide a solution to pay back the amount that is in default. If you are in this situation it can work for you, however the lender will need your full cooperation and honesty in order to consider the new arrangements. First the lender will ask important questions about what happened to cause the missed payments, then a request for certain documents must be provided.. Some of the documents are bank statements, a letter of explanation, statement of financial information, most recent paycheck stubs and perhaps a copy of proof showing verification of your statements. All the information is submitted and taken under consideration before agreement is reached as to the acceptance of the work out plan, this can take up to 45 days. If this is approved by the lender, the mortgage arrangements will help you to be current, save your home and start to repair your credit.
If you are currently experiencing this situation you can contact me, I have assisted several home owners in Ventura County save their home from foreclosure.
Robin Turner of Re/Max Gold Coast Realtors
Member of the Board of Directors for VCCAR
Member of Council of Residential Specialists
GRI
(805)339-3505
(805) 208-6378
(805) 644-1381 FAX
