Foreclosure isn’t something your lender or looks forward to doing. It is an expensive endeavor for the bank or lending company to pursue foreclosure. That’s why they are more than willing to work with you to try and avoid the situation if possible.
Instead of avoiding the lending company, talk with them instead. Don’t be embarrassed to discuss your situation; be open and honest, and you may be surprised at the options available to you.
First, find your lender. Your current lender may not be the one you originally signed with, as loans are bought and sold all the time. Go to your monthly statement or coupon book to find the company and customer service information.
Have a few things ready when you call. Make sure you have your account number handy; a full list of income sources, including jobs, unemployment benefits, retirement checks, or public assistance; and a list of your household expenses. Also put together a brief explanation of your current circumstances, and what you expect within the next few months. You may not come to an agreement with the first phone call, but having a conversation on record is a good starting point. The customer service representative you talk with will fully document your conversation, and begin working out options for your current situation.
Do not ignore any follow up phone calls or mail. They may send you payment information via regular or registered mail. It is important you handle all information quickly to avoid bigger penalties and the risk of going into foreclosure.
If you decide your situation is permanent, even if for the next few months, you may decide your best option is to sell. Work with a real estate agent that understands the foreclosure process, and can help you market and price your property in the best possible way. At this point it may be more important to get out of the loan with your credit history intact rather than wait for the highest price. A good realtor can help you assess your situation with the marketplace, and offer the best advice for you.
