If you are falling behind on your monthly mortgage payments and are struggling to meet minimums, or if you have already missed payments and are anxiously awaiting a letter from your mortgage servicer, it can be difficult to look at things from your lender’s point of view. Imagine you are the lender facing a non-paying borrower. In order to collect on your outstanding loan, you may have to repossess their home – a home which has likely lost value and is now worth less than the amount you are owed. You will then have to turn around and find another buyer for this home. In short, foreclosure is a hassle for the lender as well. Keeping this in mind may help you in facing your mortgage debt.
A Foreclosure Attorney Can Help
There are a few simple steps a foreclosure attorney will tell you to take, in order to negotiate foreclosure solutions with your lender. Among them are:
• Talk to the lender. This may seem overly simple, but when faced with a mortgage debt crisis, it can be frightening to get on the phone and admit your situation. Unfortunately, ignoring the lender’s calls and letters only increases the lender’s feeling that they are being ill-treated. Beginning an honest dialogue and telling them your financial situation is the best way to maintain a good relationship, even when you are in non-payment status.
• Seek counseling. There are many types of financial counseling available, and some are specific to mortgage delinquency and foreclosure solutions. But beware: there are as many scams out there as there are legitimate agencies to help you. Ask your foreclosure attorney for a referral to a qualified specialist.
• Understand your situation and know what your options are. This is easily the most important tool at your disposal: education. Ask your foreclosure attorney for advice, but be sure to educate yourself on your options for dealing with mortgage debt. Read the literature, and understand your financial situation. This will put you in the best position to negotiate with your lender.