If you are delinquent, call lender
Back in February, the San Francisco Chronicle had an article by Robert Bruss who is a regular contributor. The subject was late mortgage payments. Though it didn't seem appropriate at the time, more and more we are hearing of problems with loan defaults because of the sub prime lenders' loose policies toward qualifying borrowers. Here is part of the Q&A which was found there:Q: I am four months late on my mortgage payments because of a job loss. Now I am in the process of foreclosure. What are my options? I am back working again but do not have all the money yet to catch up on my monthly payments. Any advice?
Jawanna P.
Sacramento
A: Don't bury your head in the sand, as many borrowers who are in mortgage default do. Instead, call your mortgage lender immediately. Explain your situation politely. Ask for a forbearance and a loan workout plan. That is presuming you can now afford to pay at least the regular monthly mortgage payment. Ask that your unpaid mortgage payments, probably totaling several thousand dollars, be added to your mortgage principal. The result will extend your mortgage by several months but then your mortgage can be reinstated in good standing with the lender.
Lenders do not want to foreclose. They lose money on virtually every foreclosure. But lenders will insist their borrowers make the monthly payments on time. If you are unable to resume the regular monthly payments, then ask the mortgage lender for time to sell your home to pay off the balance. But do everything you can to avoid a foreclosure sale.
Read more here.
- Mick Orton
posted by SFResidence.com @ 8:20 AM
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