SAHBA Home Hints
November 18, 2007
What to Know When Talking to Your Lender
When dealing with foreclosure, there are specific details to know before talking with your lender. Last week, we talked about steps that can be taken to help avoid foreclosure. The most important action was to contact your lender and keep open communication with them.
This week, we will cover how to contact your lender, and what to know when contacting them.
If you are unable to make your mortgage payments, contact your lender (servicer) immediately.
“You need to ask your servicer about alternatives to foreclosure, including repayment plans, postponements of regular payments (called forbearance) and other work-out options,” said Debbie Brown, Senior Mortgage Consultant at PRMI (Primary Residential Mortgage Inc.).
Quickly provide any information that is requested quickly to avoid further foreclosure action; don't wait until the last minute.
“Be prepared to provide detailed financial information to assist your lender in qualifying you for a potential work-out option,” said Brown. “Be honest about your circumstances and personal finances, it will help lead to the options that best fit your situation.”
You may be asked to change your spending habits. By creating a workable budget and understanding where your money is going, you are more likely to avoid foreclosure.
Requesting financial counseling from a reputable third party can assist you if you are uncomfortable or unaware of the legal technicalities.
“Asking critical questions about timelines and deadlines will help to promptly manage the situation. You need to understand your obligations and arrangements with your lender,” said Brown, a SAHBA member.
If you hold your own homeowner's hazard insurance policy rather than your servicer, you can save money and get better coverage.
Stay in contact with your service counselor at all times. Keep your servicer notified of any changes in your circumstances, including new employment, or problems with making payments under your specific arrangements.
“Be realistic about your own financial condition. If you can't afford to keep your property, consider selling it to get your equity out,” said Brown.
Always remember that your servicer is trying to ensure a positive result for you.
“Be cooperative, honest and keep your promises,” said Brown.
Details: Brown at (520) 850-8487 or Debbieb@primeres.com.
SAHBA represents about 750 member businesses and 40,000 jobs serving the residential construction industry in Pima and Cochise counties.
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