Foreclosure is happening everywhere. People who have built equity and worked hard to obtain the American dream are on the losing side each and every day.
The most common response for folks who have delinquent payments is to quit opening the bank letters and to quit answering their phone. They just don't have the money to catch themselves up and they basically give up.
The majority of these folks in pre-foreclosure feel that they are alone and most don't want to talk about it or seek out help.
Some have made attempts to work with the bank but are unaware of how the loss mitigation system really works.
Banks really don't want to foreclose. It is very expensive and unbeneficial. They want to work with homeowners and offer them options such as loan modification, forbearance, re-payment plan, or a short sale.
When a homeowner is behind on their payments and does not have the capability to catch up, the first step is to contact the bank immediately. They need to tell the bank that they are in a hardship and request a loan modification package be sent to them. The process involves writing an actual hardship letter, filling out a financial form, providing recent pay stubs or proof of income, tax returns and possibly bank statements.
After the homeowner has provided these items, a phone call to the bank needs to take place every 10 days or less to get an updated response from them. The homeowners need to ask if the property has a foreclosure date scheduled every time they call.
The homeowner needs to open every letter and answer every phone call regarding their loan. If the homeowner has a first and a second lien, they need to address both in the same way.
The most important thing is to make the call.
A huge majority of homeowners who have experienced foreclosure could have saved their home and possibly their credit if they only knew the proper steps to take. If you are experiencing possible pre-foreclosure do not delay, every day counts.
To obtain a free step-by-step brochure or e-book about how to save yourself from foreclosure you can go to Resourceaz.com or contact me at Arizona Resource Realty, (928) 474-2550. I provide loss mitigation services free of charge or obligation.
The more homes we can save from foreclosure the better.