Will Your Mortgage Lender Negotiate With You On Your Loan Default?
Before you fill out the inquiry form below to find out if your specific lender will work with you on your mortgage situation, please take a moment to learn how this process works and get a better understanding of your options.
Q. Why are lenders willing to work with me to discount my loans? Isn’t that losing money for them?
The answer to this question is no…in the long run at least. Your lender is of course losing money at the end of the day because they are discounting their original loan amount, but in reality, they end up saving themselves more money by working with you instead of going through a foreclosure process. So its in their best interest financially, as well as yours, to negotiate with you and resolve the situation.The foreclosure process and highly probable resulting ownership of the property as a bank owned listing (usually they don’t successfully sale at the auction blocks so they have to take ownership control) cost your lender large amounts of money in legal fees.
Also and almost more importantly, it costs your lender a lot of time. Especially if they own the property as a bank owned. This is a very important aspect because keep in mind that lenders do not make money “owning” or “selling” real estate. They make money lending money and collecting from interest. Owning real estate prevents this tremendously.
Q. What is the main factor that my lender will look at when considering to work with me?
While their really isn’t a single factor that stands out above the rest, a very crucial consideration that helps you tremendously is to show that you are in return willing to work with them. What exactly does this mean? Basically, lenders want to see that you have tried to do everything in your power to prevent yourself from missing payments. Here are some items they look at to determine this:
1. Are you employed? If not, have you put a good effort in trying to find new work?
2. Have you tried to borrow money from friends or family to pay
3. Are you willing to sell your home if you cannot make your payments?
4. Have you cut out other expenses (especially leisure expenses) before coming to them to discount their loan?
The more you can show you have tried everything in your power to work make your payments but simply cannot do anything about it, then the more the lender is willing to work with you.
Q. Is there a list of lenders that you know have negotiated with their borrowers?
Yes, take a look at the list by clicking here.
Q. How do I get specific details on my situation?
You can fill out the form to your right to get details on your financial situation. We understand the form is slightly comprehensive with details about your situation. Please understand that everything asked in this inquiry form is specifically there because these are the items that lenders consider and actually have guidelines for us to follow when we look to determine if they will work with you. To make the workload smaller for themselves, lenders have created guidelines that we can plug and play scenarios to see to what extent they are willing to work with borrowers. There is of course some Gray area, but these are general guidelines that they must follow.
Also, this is a very serious event where time is of the essence and we don’t want to compromise your situation by not being able to provide you with accurate details and a plan of action right away. The more time you wait then the lower chance you have of working out a good deal with your lender. So the questions enable us to provide you accurate feedback right away.
You will receive a response within 24-48 hours. Once again, your privacy is guaranteed protected.