Foreclosures: How to Get Your Lender to Help

When homeowners are facing foreclosure, the mortgage lenders often become referred to as evil, heartless people.  While this anger in understandable, it could be in the way of you keeping your home.  Unless you foresee having financial problems for years to come, you will want to make nice with your financial lender.  After all, they may be able to provide you with an alternative.  This alternative can keep your home out of foreclosure or stop the current process right in its tracks.

The first step in getting your lender to work with you, to avoid foreclosure, is speaking with them.  You will get nowhere by avoiding them.  Whenever you receive a warning or an intent of foreclosure notice or a phone call, start making plans to contact your lender.  While you may want to head straight to your local bank branch, you may want to take a few hours or a day to reflect on the situation.  This will allow you to develop a plan of action, a plan of action that will be successful.

Before meeting with an official at your bank, it is important to know what you will say and how you will say it.  This is key to keeping your home out of foreclosure.  Although financial lenders want to avoid foreclosures at all costs, they don’t want to keep on losing money.  Lenders are usually unwilling to work with those who don’t show true interest in rectifying the situation. That is why a plan of action is required.

As for that plan of action, collect as much information as you can about your current financial situation and the cause of it.  For example, are you currently laid off, but looking for a new job?  Take your updated resume to with you.  It can help to show that you are actively looking for a job and trying to save your home.  Let them know of any upcoming interviews you may have scheduled as well.  

If you are out of work due to an injury and that injury is only temporary, get notices from your doctor and your place of employment.  This will prove to your lender that you still have a job waiting for you and will be able to return to work soon.  Proving that you do intend to make your mortgage payment in full and as soon is possible is key to avoiding foreclosure or stopping it.

Next, it is important to consider your appearance and your attitude.  Starting with your appearance, it is important to walk into the bank with your head held high.  You will also want to dress professionally.  Women should wear dresses or pantsuits.  For men, pantsuits are also recommended.  Avoid casual clothing.  For many financial lenders, a borrower who carries himself or herself in a professional manner shows responsibility.  Responsibility is another important key to getting your lender to work with you.

As for your attitude, make sure that you don’t have one.  As previously stated, financial lenders often become the bad guys when foreclosure is threatened or when the process gets started.  No matter how angry you are with your lender, do not let your anger show.  

If you learn that your financial lender is willing to work with you, to help you avoid foreclosure, they may offer their own suggestions.  You can take these suggestions, but don’t get in over your head.  Reduced mortgage payments are nice, even if they are only temporary, but make sure that you can pay them.  If a strict deadline is set for the return of the originally agreed upon payments, make sure you can make those payments too.  If not, the whole foreclosure warning process will start again.

In short, always approach your financial lender if you suspect foreclosure is on the horizon or as soon as the proceedings start.  Since lenders lose money on foreclosed properties, they want to avoid foreclosure just as much as you do.

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