| As interest rates have risen nationwide, and the | | | | Make absolutely sure you do not delay on this |
| real estate market has begun to stagnate or | | | | very important step in saving your home. If you |
| drop, foreclosures have become a rising problem. | | | | are unsure what to include in the letter, you may |
| While there are many resources available for | | | | want to review some sample letters to lenders. |
| homeowners to save their homes, there are just | | | | Depending on your situation, one or more may be |
| as many scams out there. Many of these scam | | | | appropriate for you to send to your lender in the |
| companies offer to help homeowners work with | | | | next few minutes. Just customize any letter you |
| their lender to establish a repayment plan. In | | | | find for your situation and send them directly to |
| nearly every instance, unfortunately, these | | | | your lender as often as is necessary. If you think |
| companies are only providing clients with options | | | | additional information will assist them in |
| that they would be better off doing themselves. | | | | understanding your situation, send that, as well. |
| However, most homeowners are drawn in by | | | | Figure out Your Lender's Plans |
| these scams because they are too unnerved by | | | | Your next step should be reading up on as much |
| their current situation to contact their lender. | | | | information about your state's foreclosure laws as |
| They are afraid of admitting their failure, and are | | | | you can. Only in this way can you figure out how |
| easily tricked into asking for help. The purpose of | | | | your lender will attempt to take your home from |
| this article is to show homeowners in foreclosure | | | | you. The most important detail you want to find |
| how to approach their lender when attempting to | | | | out at this stage is how the lender can pursue the |
| work out a solution. | | | | foreclosure. In order to sell your home at a |
| How to Contact Your Lender | | | | sheriff sale, do they have to sue you and prove |
| Your very first question when facing foreclosure | | | | in court that you are in default? Or did you |
| may be "Well, how do I contact the lender the | | | | authorize them to sell the home if you fell behind? |
| first time? I've been ignoring their calls for | | | | If you are thinking that you would never willingly |
| months, and now I have to let them know I'm | | | | authorize the lender to sell your home out from |
| not a deadbeat. They won't believe me if I just | | | | under you, you need to find your original loan |
| call them and tell them that." You're right, they | | | | documents as soon as possible. The documents |
| probably will not believe you if you first ignore | | | | may contain a clause that lets your lender sell |
| their calls for months and then call them and say | | | | your home right away if you go into default. This |
| you intend to solve the problem. | | | | clause is called a "power of sale" clause, and can |
| But as hard as it may seem, you should call them | | | | be used in states that allow a Non-Judicial |
| and let them know you are determined to keep | | | | Foreclosure process. |
| your home and repair your reputation with them. | | | | The main difference between Judicial and |
| Ask for the representative who is the point of | | | | Non-Judicial Foreclosure is the procedures the |
| contact for your file, and speak with him or her | | | | lender must follow to take your home. Judicial |
| personally. You may have to leave a message, or | | | | procedures require the lender to sue you in court, |
| several messages, before you receive a call back. | | | | prove that you are in default of your loan, and |
| In order to save your home, you will need to | | | | obtain a court order allowing them to foreclose on |
| exercise persistence. Keep attempting to get in | | | | the property and sell it. Non-Judicial procedures |
| touch with a decision maker from your lender. | | | | allow the lender to publish their intent to sell the |
| This is a great time to start documenting | | | | property, and then sell it at auction. |
| everything. Write down the date and time | | | | Examine the state foreclosure laws listed on our |
| whenever you attempt to contact your lender or | | | | website or other sites online to find out if your |
| their attorneys. Also make sure you write down | | | | state uses Judicial or Non-Judicial Foreclosure |
| the name of who you talk to, and what you | | | | procedures, or both (for even more information |
| discuss; if you leave a voicemail, write down the | | | | you may want to visit your state's official |
| contents of the message. If at all possible, record | | | | website). For states that use both methods of |
| every conversation you have with your lender by | | | | foreclosure, you will have to examine your |
| using a tape recorder, cell phone that can record | | | | mortgage documents to locate the "power of |
| conversations, or a computer. In the event you | | | | sale" clause. A small number of states allow a |
| have to speak with a judge about the case, you | | | | Strict Foreclosure process, whereby the lender |
| must be able to show proof that you have tried | | | | can prove your default in court and immediately |
| working out a solution. | | | | be awarded title to the home; there is no formal |
| The more work you have done to help yourself, | | | | foreclosure process and no sheriff sale. |
| the more the court system will sympathize with | | | | Once you have briefed yourself on your state's |
| your situation. In many cases, the courts can | | | | foreclosure laws and examined your loan |
| allow you additional time to become current on | | | | documents, you will be more informed than the |
| your mortgage. They can even override the | | | | vast majority of homeowners facing foreclosure. |
| lender's process of taking your home, reverse the | | | | You will also be aware of the specific procedures |
| foreclosure, or rescind the sheriff sale. | | | | the lender must follow if they intend to take your |
| Also, request the lender's representative's direct | | | | home. This knowledge, plus your diligent |
| fax number, and send a letter which states your | | | | documentation of your attempts to contact your |
| intention to keep your home and your request | | | | lender, puts you in a position of strength for the |
| for them to help you examine options to get you | | | | first time since missing a mortgage payment. You |
| out of foreclosure and caught up on your | | | | should now be ready to begin assessing your |
| mortgage. You will have to ask your lender what | | | | situation and determining the best solution to |
| programs they offer, since they are not required | | | | foreclosure. |
| to inform you of them. | | | | |