Facing Foreclosure?
Anyone worried that late or non-payments will result in foreclosure should consider making a few phone calls to their lender and/or servicing agent. The federal government has recommended that lenders and servicing agents (companies that collect mortgage payments for lenders) take steps to work out payment plans or alternative financing solutions for many borrowers that are facing higher payments due to their ARMs adjusting. It may take several calls to find the right department or person to talk to but diligence can pay off big if you are able to work out a more favorable payment and/or refinance into a lower rate. No one wants to see a property go into foreclosure and most lenders will work with homeowners that make the effort to contact the company and ask for help. Foreclosure is devastating to an individual’s credit rating. Be proactive in looking for ways to make your payments and keep them timely—asking your lender and/or servicing agent for help and options is the first step.