Why You Should Talk to Your Bank?

If you're a homeowner who is facing foreclosure, your first thought may be to
start packing. While this may be the only choice for some in foreclosure, it
doesn’t mean it's your only choice. Before you throw in the towel, make an
appointment in person to speak with your financial lender. You may be
surprised how much help, assistance, or advice they are willing to give you.

First and foremost, it's important to know that banks and other financial
lenders are not evil. It may sound silly, but this is how many homeowners
feel when facing foreclosure. Many want to know how another human being can
force them to leave their own home. In the heat of the moment, many do not
realize that banks want to avoid foreclosures just as much as homeowners do.
Financial lenders often lose money on foreclosure properties. That is why it
is imperative that you schedule an in person meeting with your lender.

As nice as it is to know that you should meet with your financial lender when
you feel that you are facing foreclosure or know for sure that it is looming,
you may be unsure how to start. Well, that is easily answered, the second you
know you will be late on a payment, or that you are late. It is best not to
wait until the foreclosure process starts. If you can make a payment, but
need a few weeks, be sure to make your actions known. This will prevent your
lender from even considering foreclosure right away. Most mortgage companies
won't start foreclosure proceedings unless you are 2 or more months behind in
you payments. You will usually get a notice in the mail that you are late and
to contact them immediately, don't ingnore this notice and don't avoid any
calls made to your home, speak with someone asap about your situation and they
will usually work out some sort of payment option with you.

One of the many reasons why homeowners are facing foreclosure is because of the
job market. Long-term employees are now finding themselves standing in the
unemployment line. If you are laid off from your job, schedule a meeting with
your mortgage holder immediately. They may be willing to work with you,
provided you will be taking proactive steps to find a new job. Often times, you
may find your monthly mortgages payments temporarily reduced.

When your home enters into foreclosure, you will see signs posted on the
building. With that said, this is not the first notice that you will receive.
As a reminder, banks want to avoid foreclosure just as much as you do, that is
why they will likely call and send regular notices to your home. As
embarrassing as it may be to admit that you can't make your mortgage payments,
it is important to answer the phone. Remember, your bank may be willing to work
with you and create a temporary payment plan. This is often the case when you
can prove your financial hardships are only temporary. For example, are you
temporarily unable to work due to an injury? Were you laid off, but looking for
a new job? If so, make it known.

It is also important to determine how much you need to pay to stop the
foreclosure proceedings in their tracks. Since banks want to avoid foreclosure,
they may accept a portion of the money that you owe. With that said, this is
where you need to proceed with caution. If the bank requires full payment the
following month, make sure you can make that payment in full. If not, the
process will simply just restart from the beginning all over again.

Finally, when discussing your options with your bank, it is important to do so in
person. You will want to show your lender that you intend to get back on track
financially, but this is difficult to prove over the phone. Walk into the bank
with your head held high, dress professional, and be very confident. You need to
prove to your lender that the words coming out of your mouth are true. Just
because you say you are looking for a new job, it doesn’t mean that you are.