|
Does my mortgage company want to foreclose on my property and take my house?
Absolutely not. When a mortgage company forecloses on a property, they almost invariably lose money. They lose even more if they are forced to take ownership of the property. Because of the mortgage company as well as the investors likely lose money on foreclosed properties, there are wonderful ways to avoid foreclosure. This is the good news.
The bad news is that you are really nothing more than a loan number—usually one of millions—to your mortgage company. While not trying to insult your mortgage company, they don't need or want to specifically help you. They simply need to ensure that they meet their numbers. While it may be encouraging to know that their financial interests lie in keeping you out of foreclosure, you should also realize that mortgage companies are some of the largest owners of real estate in the world. This is directly attributable to the sheer number of properties they assume after the foreclosure sale.
|
|
|
Can't I do this myself? Why should I pay someone else to do it for me?
Of course you can negotiate with your mortgage company yourself. Just as some people act as their own accountants or legal representation, some people are knowledgeable enough about mortgage delinquency that they are comfortable negotiating with their mortgage company.
However, for others phrases like "partial claim", "loan modification" and "special forbearance" are intimidating and confusing terms. People in this category may find dealing with their mortgage company to be a dehumanizing experience as they are shuffled along the assembly line-like process.
|
|
What are "hardships" and do I qualify?
Here is an example list of hardships that lenders consider during the loan workout process:
- Adjustable Rate Mortgage Reset—Payment Shock
- Reduced Income
- Illness
- Loss of Job
- Failed Business
- Military Duty
- Medical Bills
- Job Relocation
- Divorce
- Marital Separation
- Damage to Property (natural disaster or unnatural)
- Death
- Death of Spouse or Co-Borrower
- Incarceration
|