Should You Call Your Lender when Facing Foreclosure?

If you’re one of millions struggling to make your mortgage payments, you may have been putting off calling your lender to discuss your options for awhile. You are not alone. Most homeowners are scared and embarrassed to call their mortgage companies or banks to let them know they are struggling to make their payments afraid of getting a foreclosed home. With new advice surfacing, you may be right not to go through this alone.

There are situations where Loss Mitigation departments are not as helpful as they should be and sometimes homeowners are pushed into signing papers which may not be in their best interest. In working directly with your lender it is difficult to know whether they are steering you toward a better solution to your problem, or simply trying to erase the problem on their end as much as possible.

Now you may be even more scared to make that phone call, but there are nonprofit agencies that offer services to homeowners like yourself. They will go over all of your documentation and help you maneuver through the process of dealing with the lender so that you will have help saving your home, if that is at all possible. There is no reason to go through this stressful process alone when there is help offered free or at low cost.

You should do your part to make the process go smoother, as you can imagine the numbers of homeowners who need this service right now are overwhelming. Make sure to gather all the paperwork your counselor will need to analyze your situation and guide you on what to do next. This includes all correspondence from your lender, most recent mortgage statements, insurance policy if you don’t pay it through your mortgage, any foreclosure notices or sheriff’s office notices, and all the proofs of your income you can find. Proofs of income include pay stubs, bank account statements, and tax returns.

The first thing your counselor will do is help you discover who your lender actually is. Many loans have now been sold and resold many times so it can be hard to tell in some cases who you need to deal with. Once that is discovered, the counselor can help you find out the lenders options for possibly paying less or coming to another agreement.

It is important that you take the initiative to seek out a nonprofit agency that is willing to offer these services to you. Do not trust anyone that approaches you, whether it be by telephone or through mail and email. The number of scam artists circling around struggling homeowners with false hopes of curing their problems are growing just as rapidly as the numbers of people in need increase. Play it safe and only use companies that you know are legitimate and that do not ask for a lot of money in advance. Good agencies with goals to really help people in your situation will provide the services free or for a nominal fee.

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