| Working With Your Lender to Stop Foreclosure Although lenders do not want to foreclose if it can be avoided, they do want to make sure you can follow-through on any promises you make to bring your account current.
Be prepared to share all details about your financial situation with your lender.
- An explanation of your current financial circumstances.
- Details about your current income, including pay stubs, statements regarding unemployment, disability, social security, retirement, public aid, or other similar documents.
- A list of your household expenses.
The lender will probably ask you to fill out documents that describe your financial situation. They will review and analyze the documents before offering a solution to bring your loan up-to-date. If the lender sends you a packet, turn it around quickly and answer all questions honestly.
Preserving Your Good Credit
If your home loan is past due, your other obligations probably are too. A nonprofit credit counseling agency might be able to help you work with your creditors to reduce your monthly payments by lowering interest rates or extending repayment periods.
The key word here is nonprofit. Steer clear of companies that promise you quick, easy results for all of your credit problems--if you pay them a large fee. You know better--that's not how it works in the real world. The National Foundation for Credit Counseling is a good place to start
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