Stop Home Foreclosure

Step 3: How and why to communicate with your lender

We talked a lot in step one about how important it is to contact your lender right now. Just to reiterate, waiting to contact your lender does nothing but harm your chances of keeping your home. In addition to taking the initiative to contact your lender, respond immediately to any attempt they make to contact you. Your lender will not work out a plan to help you avoid foreclosure if they are not talking with you first. You have to start the process. You have to call them to stop home foreclosure. 

To avoid a foreclosure you need to be completely honest with your lender. If they catch you lying, or even omitting the truth, they will likely stop dealing with you and start the foreclosure process. Likewise, if you make promises that you are not able to keep or don't follow through with, they will also probably start the process of reclaiming you home. 

Your financial situation will obviously play a significant part in how far your lender will go to help you.  Another important factor in your lender’s willingness to work with you is going to be your overall attitude. The importance of a good attitude can not be overstated when dealing with your lender. You need to be positive and show that you are willing to put forth your time and effort to help resolve this problem. 

To contact your lender, get their name and contact information from: 

  • Your mortgage billing statement 

  • Your mortgage coupon book 

  • Any correspondence they have sent in regards to a delinquent mortgage

  • Keep in mind, your current lender may not be the same institution you initially financed your property through.  Many times, lenders will re-sell their mortgages to bigger companies shortly after closing. 

This phone number will put you in contact with the company that manages your mortgage- they may or may not actually own your mortgage, but that is off little consequence to you. They will require the same information and be the ones working with you either way. If you call the number and the person who answers the phone doesn’t understand the situation ask to speak with the loss mitigation department. 

There is some current financial information your lender is going to need from you. To help them, have the following items available: 

  • Your loan account number

  • Details about your current income

  • Pay stubs

  • Social Security checks

  • Tax returns with profit/loss statement if self employed

  • Unemployment checks

  • Alimony/child support checks

  • Public aid, anything that pays you money

  • An explanation of your current financial circumstances

  • Statement regarding the cause of your unemployment/hardship

  • If laid off or going to be laid off- any papers from your employer

  • If a temporary problem, bills that explain the cause (hospital, etc.)

  • List of your household expenses

  • Utilities

  • Phone

  • Cable

  • Internet

  • Credit Cards

  • Car Loan

  • Insurance

  • Food

  • Child Support

  • Other loans 

Along with the information above, your lender will likely send a Loan Work-out Package for you to complete. It will require much of the same information listed above. Fill out this package completely and honestly. Your lender will need to analyze your financial position before proceeding further. Once they have determined your situation you can expect them to explore a number of possible options to avoid foreclosure before committing to any one solution. To get an understanding of the options your lender has, please go to step 3: “Understanding all of your options and home foreclosure alternatives.”

 


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The information contained in this site is based on our opinions, research, and experience dealing with the foreclosure process.  It does not constitute legal advice.  If you need legal advice specific to your personal situation, please consult an attorney.