SAHBA Home Hints
July 13, 2008
Avoid Foreclosure with Foresight and Help from Lenders
Maxing out credits cards, missing utility payments, or only being able to pay the minimum on a credit card are signs of financial trouble that may spill over into a homeowner's ability to make mortgage payments. Housing counselors and lenders want to work with borrowers in order to avoid the progression of these problems.
Greg Renkenberger, National Sales & Marketing Manager at Imortgage.com, says homeowners can avoid financial troubles by utilizing precautions. Saving money during more profitable times can help borrowers make payments if the unexpected happens. Reducing expenses also is recommended.
“Lenders want to hear from you if financial problems occur,” said Renkenberger, a SAHBA member. “They are not in real estate and they don't want your property.”
Renkenberger says lenders may allow forbearance for situations such as temporary job loss or unexpected expenses. This allows borrowers to skip a selected number of payments that will be mixed into or added on the end of a loan.
Discussing difficult financial situations with a lender is the best approach to avoid the possibility of foreclosure. However, borrowers also can contact the U.S. Department of Housing and Urban Development (HUD), 800-569-4287, or the Homeownership Preservation Foundation's Homeownership HOPE hotline (888-995-HOPE) if they don't feel comfortable contacting their lender themselves.
“HOPE and HUD can help borrowers ask questions they may not know to inquire about,” said Renkenberger. “They also can be an important intermediary between borrower and lender.”
Service members recently released from active duty may sometimes be surprised by the possibility of a foreclosure. In addition to HOPE and HUD, these service members may find other relieve options through the Service Members Civil Relief Act.
Homeowners should know exactly what they owe and have account and financial information ready when speaking with their lender or financial counselor. Renkenberger says being truthful about financial troubles will help lenders fill out a workout package. Embarrassment should not stop borrowers from getting the help they may need.
Details: Renkenberger at 520-225-6875.
SAHBA represents about 750 member businesses and 40,000 jobs serving the residential construction industry in Pima and Cochise counties.
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