Michelle Singletary at the Washington Post has a great column online today about why people don’t call their mortgage lender when they are facing a financial crisis. According to a Freddie Mac survey, 75% of delinquent borrowers who were contacted by their lender didn’t even follow up to discuss solutions.
You should contact your lender immediately when you are facing a financial crisis such as injury, illness or loss of job. Your lender will likely have forbearance programs, repayment systems and other assistance available to help you avoid foreclosure:
A 2004 Freddie Mac study found that repayment plans could lower the probability of home loss by 80 percent among all borrowers and by 68 percent among low- to moderate-income borrowers.
Mortgage lenders want to help their customers avoid the difficult and lengthy process of foreclosure. Once you realize that you are working in partnership with your lender, it is easier to see that calling them at the first sign of trouble is a good plan.
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I HAD A TENANT WHO DIDN’T PAY RENT FOR 5 MONTHS. I FINALLY HAD HIM EVICTED AND AM TRYING TO RECOVER LOST MONEY. I TRIED HARD TO HELP THIS FAMILY. I HAVE NOW JEOPARDIZED MY FAMILY BY DRAINING ACCOUNTS TO KEEP THE PROPERTY. SHOULD I LET THE PROPERTY GO INTO FORCLOSURE BECAUSE I CAN’T AFFORD TO PAY TWO MORTGAGES?