Finding an adequate solution for mortgage debt can be difficult. Since everyone’s financial situation is unique to them, no two options are equally viable for anyone. The best way to pursue mortgage relief is to know which steps to take first.
Avoid Foreclosure - while this seems like the obvious reason for finding mortgage relief, too many people give up easily and allow their homes to end up in foreclosure. Finding a solution may not be easy, but it is far worth it in the end to walk away from a home after a short sale or deed in lieu than a foreclosure. Remember that even though a lender may not appear willing to offer all options, there are multiple solutions available to help with your debts. There are several federal programs offered to homeowners that have not been able to successfully work with their lender and these options should always be considered when things look grim.
Be Persistent and Flexible – it is true that the borrower is responsible for mortgage debts, which means that the lender holds most of the negotiation power. However, successfully resolving mortgage debts is far from impossible. The trick to mortgage debt negotiation is knowing what outcome is needed and how the lender can help achieve the end goal. What is most important, long term financial relief or short term lower payments? Is keeping the house the main goal or avoiding the consequences of foreclosure? Borrowers need to be both persistent in their need for help, but also flexible enough to compromise with the lender if need be.
Contract The Deal – many people are so busy fighting to the best deal that they often forget what it ultimately the most important, getting a copy of the deal in writing. With mortgage and foreclosure scams on the rise having a certified copy of an approved deal has never been more important. Whether the deal is a loan modification or the forms required by the IRS when debts are cancelled, getting it in writing is the ultimate goal. The deal means nothing if there is not an approved and signed copy from the lender.