The most tragic consequence of the current economic crisis is many individuals are losing their homes. Owning a home has always been high in the list of dreams for People all across America. Unfortunately, for many this dream is turning into a nightmare due to the rising number of foreclosures.
If you find yourself facing eminent foreclosure, I wanted to pass on some things you can do.
1) The bank or mortgage company does not want your home back. They loaned you money to buy your home anticipating that you would pay it back. They are not in the business of taking peoples homes but earning interest on the loans they give people to buy a home. When they foreclose on a home they incur costs associated with both the foreclosure and finding a buyer for the home.
2) They want to hear from you. Many facing foreclosure go dark as the banks put it. This means they do not call the bank and fail to answer the banks calls. This leaves the bank with no recourse but to begin the foreclosure process. Instead of going dark, ask to sit down with your banker and work something out. Lenders can do several things to help you keep your home. For instance
a. They can reduce the interest rate on the loan and reduce the payment
b. They can extend the terms, or time required to repay the loan.
c. They can do a combination of both.
However, once you negotiate an acceptable settlement with the bank you must make sure to follow through. They may have been receptive the first time but will not be as receptive the second time if you still fail to make your payments.
When I purchased my home my realtor told me this would be one of the most stressful times in my life. She was right. However, I believe losing a home to foreclosure would be even more stressful so I hope this advice will be of assistance to you.
Comment to Dale on this blog or send your comments to dalewsr34@gmail.com.
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