Re: pre-foreclosure question
Posted by Jen on March 13, 2008 at 11:44:09:
In Reply to: pre-foreclosure question
Posted by Stephanie Sturgill on February 28, 2008 at 08:21:00:
Hi Stephanie,
Don't panic just yet. Even though the lender has said that they're going to begin the foreclosure process, the whole process itself could take 6-12 months. So you have some time.
Recently, Lenders are even more willing to work with their customers who are behind in their payments. Lenders are not in the business of owning properties, they're in the business of lending money and can only have so many properties on their books at a time. They would much rather work out a payment plan than foreclose on a property. I would contact your lender and see what their willingness is to work with you. Just be careful though, if you work out a payment plan with them be sure that it's something that you'll actually be able to pay. Many times the lender will give you a payment plan that is higher than what your initial payments were (that you weren't able to pay!).
If you really can't afford to catch the payments up, you might want to think about selling the property. That option is much better than a foreclosure or a deed in lieu, which can both really hurt your credit. If you owe more than the property is worth you can also look at selling the property via a short sale. Banks are very willing to do short sales as well. I hope this is helpful!
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