Are You At Risk for Default?
Add a comment Wednesday, December 9, 2009
I was very surprised to learn that industry estimates find that half of all homeowners who lose their homes to foreclosure have no contact with their loan servicers. If you are at risk of default or already behind on your mortgage payments, I recommend that you contact your servicer at the first sign of trouble. Ask to speak with someone in the home retention department.
You may be able to work out a loan modification, short-sale, or repayment plan. Servicers will ask you to explain the reasons why you can no longer make the mortgage payments. You should be honest and realistic. The servicer also will need to verify your current income, unemployment benefits (if any), household expenses, tax returns, property taxes, hazard and flood insurance premiums, and condo or HOA dues.
Whether the loan servicer requests it or not, you should include a letter authorizing the servicer to speak with your REALTOR®, another family member, or perhaps your attorney, as this can help speed up the process.
If you have any questions about this process, please don’t hesitate to contact me. I’m here to help.
