Foreclosure Crisis Help
One temptation to absolutely avoid is deliberately defaulting or sabotaging a healthy mortgage repayment history just to qualify for mortgage term renegotiation programs! Other than being completely unethical, in the end this tactic will never pay off. Here's why:Mortgage Term Renegotiation Programs Are A Mess
Do a simple search for complaints about your mortgage company. Or, just search for complaints on the mortgage giants, like Citimortgage. You will read all about lost applications, threats of foreclosure, and other complete nightmares for families needing help. Mortgage companies know there are applicants out there just looking for free money and they are trying their best to protect themselves from being the patsy.
The mortgage companies are resorting to guerilla tactics-- hiring private investigators to look into applicants'
lives, scaring applicants with misinformation to test for true desperation, and creating more paperwork hoops to jump through with each contact just to move the finish line that much further. You will actually risk losing your home, completely, without any compensation. Not to mention you could be taken to court for fraud by the mortgage company and the federal government, who is underwriting many of these assistance programs.
Foreclosure Article 3/2/10In most cases, no court is going to completely free you from your debt to your creditor(s), but they will help make it easier to negotiate a new payment structure that you can comfortably handle, thus keeping your creditor(s) happy and a roof over your head.
A second option to consider is attempting to negotiate with your creditor(s) personally. All it takes is a few phone calls to arrange some meetings in person with their loan officer, collections manager, etc. Be honest and explain your financial situation and be sure to insist that you want to pay off the debt owed as quickly as possible, but cannot with the current terms of the loan.
3/3/10 Preventing Foreclosure
Regardless of which option you choose to take, there is nothing more important that taking action as soon as you can. Decide what you will do to get help with your foreclosure problem and start the process immediately so you can get your financial, personal, and professional business life back on track.Many lenders will be more than happy to arrange a new payment structure, because as long as they still get their payment, everything is fine. The fact is that lenders do not really want to engage the legal and financial burden of foreclosing on your home, handling the paperwork, hiring a broker to sell it, etc. They would prefer that you just made your payments on time. Use this to your advantage when negotiating a deal that works well for both of you.