There is a very simple answer to this, and it is the most important thing for you to do:
TAKE ACTION NOW by contacting your lender. Keep your line of communication open. Do not wait to contact them until a few days before the scheduled foreclosure sale date. It then becomes very difficult for the lender to have enough time to put together your file and request a postponement. Some lenders even have their own internal policies in which they will not allow any type of foreclosure negotiations if it is within 5 - 10 days of the foreclosure sale date.
The mortgage company wants their money as much as you want to keep your home. They will use a little scrutiny in their decisions, so you should always show good intent. They don’t want to postpone or stop your foreclosure if it appears that you will be back in foreclosure again.
Ask for a postponement so you can have more time to get the necessary finances, or documentation that they need. Don’t expect them to automatically offer a postponement. Go ahead and ask for it. Show them, tell them, how willing you are to do what it takes to keep your home. The mortgage company needs time to pre-qualify you for a workout. Most often, while your file is in review with the negotiator at the mortgage company, they will place your foreclosure “on hold”, or give a postponement of the foreclosure sale date.
Find out what workout option you may qualify for in regards to your financial issues that you are facing with your mortgage. Several workout options that are usually available include: a special forbearance, a loan modification, a repayment plan, or a partial claim. Other less desirable options include a short sale, or bankruptcy.
You can also check with your lender and find out if they are one of the lenders in the “Project Lifeline” program. This program was announced by the Bush administration on February 12, 2008. The lenders under that program are supposed to contact homeowners who are at least 90 days delinquent on their mortgage payments and give those homeowners a chance to have their foreclosure process put on hold for 30 days while the lender tries to find a workout plan. Not everyone will qualify for the program. Some reasons you may not qualify are: if you have entered bankruptcy, if you already have a foreclosure sale date scheduled within 30 days, or your home loan was taken out to cover an investment property or a vacation home.
And, you are welcome to use our Free Step by Step Help guide that is available on this website.
Take action now. Good luck.
Barbara Partaka
Home-Buddies