Don’t Be Afraid of Foreclosure

Are you about to have your home foreclosed? Can you no longer make your mortgage payments because of unforeseen circumstances or a rate increase? Do not be afraid of foreclosure, do not ignore the notices, do not abandon your house, and don’t panic.

Remember one fact: Given a choice, the bank would much rather prefer to continue receiving some sort of payment from you than receive the house in foreclosure. Read that again… the bank does not want to foreclose, they only do it if they are given no other choice. The bank is not in the real estate business, it’s in the money lending and collecting business, so they don’t have it “out” for you.

It’s crucial that you keep the communication channels open and always try to make alternate arrangements with your lender. Sometimes they will be accommodating, sometimes they won’t be, but if you don’t communicate with your lender then you won’t know. Especially with so many ARMs re-adjusting these next few months, your lender may be especially forgiving as long as you have a plan to get back on track.

So, if you know your payment is going to increase or you foresee any sort of problems, definitely start talking to your lender. The answer may be to refinance or an alternate payment agreement can be reach, but don’t ignore your lender and don’t be afraid to talk.