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• Talk to your bank when you first get behind.
You want to put this behind you and not let this get out of hand.
You want all of the stresses to go away, however, if you do not
talk to the bank and be open to different options, the matter will
only continue to get worse. I have seen people avoid the bank at
all costs at first believing there will be this miracle to happen,
only in the end to find out it is too late for them to do anything.
I do believe in miracles. I do believe that you have to be proactive
and looking for that miracle before it will be given to you. The
longer you wait, the more the fees that you will incur. Attorney
fees run around $1600 - $3000 for the bank to conduct a foreclosure.
If you wait to reinstate at the last minute, you are the one that
has to pay for these fees.
•
Ask the bank for a forbearance agreement. This is an agreement
to help you get caught up on the monthly payment. For example, if
you were 4 months behind on your house payment, the bank may be
willing to stop the process if you were to bring 2 months worth
of payments in. Usually, the bank will require you to get your tax
returns and fill out some paperwork to do this. If so, fill out
the paperwork completely and get it back to them as soon as possible.
If
you are not sure about a question, call the representative that
you are working with. Be responsible and take action. Bank representatives
are only human, they are given 200 foreclosure files every month
to try to resolve. So be patient with the person you are dealing
with. Do not scream or yell your frustrations, as this will only
cause more problems for yourself. So be understanding, explain to
them that you understand how hard their job is and this will create
a bond with the person you are dealing with which is important because
this will be the person that is going to bat for you when they talk
about getting approvals with their boss.
There are companies
out there charging fees up front for doing this.Do not pay anyone
up front to negotiate with the bank a forbearance agreement. The
people that want the money up front will not make any guarantee
while you are out $300- $400, this puts you taking all the risk
for someone else to getthe situation resolved. If you want to go
this route, then hire someone that gets paid on performance after
they have worked out a possible solution. Usually these consultants
will work harder to get your situation resolved because their pay
will depend on it.
•
Refinance you current loan, getting a 2nd mortgage. This
a very unlikely scenario, but I have seen it happen. Usually, if
you are in foreclosure, there is only a slim chance to getting a
refinance or another loan. You really have to look within to see
if this is a real solution or if it just going to overload you even
more. Imagine having another payment that you have to worry about
plus all of your existing payments, how does it make you feel? Be
sure to be real with yourself. Do not overestimate and say “well
I am going to work more hours to pay for this” or “I
am going to go get another job so that I can pay for it”.
You have more to worry about than just your pride and your home.
You may have a wife or a family that solely depends on you. If so,
be real with yourself, ask for help and move in the right direction
to get a fresh start. In addition, your health is also more important
than any house or financial obligation could ever be. Do you have
any idea what kind of impact these types of stresses have on your
health? I can assure you it is not favorable. So, be real and be
committed to getting the problem resolved for good. Look at the
big picture instead of the short-term view
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