Mortgage companies often willing to work out a deal with borrowers to avoid foreclosure
July 6, 2007 (Press Release) --
Many homeowners who fall behind on their payments do not know that help may be available from the least likely of places—their mortgage company. Instead, they let their mortgage company continue making collection calls and sending letters until they finally foreclose on the home. Many mortgage companies offer two options that involve working with the homeowner to avoid foreclosure.
Since foreclosure may result in losses for both lenders and borrowers alike, mortgage companies are often willing to work out a deal with the homeowner as an alternative to selling their house at an auction. Lenders have loss mitigation departments specifically set up to create these plans with homeowners once they are at least two months behind on payments. The following two workout plans are the most common:
The first type, called a forbearance plan, is described as follows—the borrower agrees to keep making their mortgage payment every month, plus a portion of the amount that is still behind. In 3 to 18 months, the borrower will have paid back all of their late payments. This is a viable option when the homeowner’s default was the result of a temporary financial setback, and they will be able to continue making payments in the future.
Mortgage modifications are another option for homeowners who are behind. It involves changing the terms of the loan. In this case, the mortgage company will take the amount that is behind and add it to the remaining principal balance. The money will still be owed, but it is deferred until the house is sold or refinanced.
According to Alan Brymer of Your Home Advocate, “This may be a more appealing option than a forbearance agreement because the borrower does not have to make a larger payment each month.”
In either case, homeowners can work out plan with their lender by calling the customer service number and asking for the loss mitigation department. They will be asked to apply for either of these workout programs and to provide bank statements, paystubs, and other documentation. The lender will then decide if a workout plan is possible, and negotiate the terms.
Negotiating with the lender is often the best way to save one’s home because it is something that a borrower can do themselves and does not cost anything to do. When communicating with a mortgage company, negotiating the best possible terms is extremely important. A free report entitled “11 Ways to Save Your Home” is available to all Utah homeowners in default at www.yourhomeadvocate.com.
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For more information on this topic or to schedule an interview with Your Home Advocate, please call Alan Brymer at 801-342-9260 or send email to alan@yourhomeadvocate.com.
Since foreclosure may result in losses for both lenders and borrowers alike, mortgage companies are often willing to work out a deal with the homeowner as an alternative to selling their house at an auction. Lenders have loss mitigation departments specifically set up to create these plans with homeowners once they are at least two months behind on payments. The following two workout plans are the most common:
The first type, called a forbearance plan, is described as follows—the borrower agrees to keep making their mortgage payment every month, plus a portion of the amount that is still behind. In 3 to 18 months, the borrower will have paid back all of their late payments. This is a viable option when the homeowner’s default was the result of a temporary financial setback, and they will be able to continue making payments in the future.
Mortgage modifications are another option for homeowners who are behind. It involves changing the terms of the loan. In this case, the mortgage company will take the amount that is behind and add it to the remaining principal balance. The money will still be owed, but it is deferred until the house is sold or refinanced.
According to Alan Brymer of Your Home Advocate, “This may be a more appealing option than a forbearance agreement because the borrower does not have to make a larger payment each month.”
In either case, homeowners can work out plan with their lender by calling the customer service number and asking for the loss mitigation department. They will be asked to apply for either of these workout programs and to provide bank statements, paystubs, and other documentation. The lender will then decide if a workout plan is possible, and negotiate the terms.
Negotiating with the lender is often the best way to save one’s home because it is something that a borrower can do themselves and does not cost anything to do. When communicating with a mortgage company, negotiating the best possible terms is extremely important. A free report entitled “11 Ways to Save Your Home” is available to all Utah homeowners in default at www.yourhomeadvocate.com.
###
For more information on this topic or to schedule an interview with Your Home Advocate, please call Alan Brymer at 801-342-9260 or send email to alan@yourhomeadvocate.com.
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