Behind in
Mortgage Payments? Ask Your Bank about a "Workout
Plan"
Jeanette Joy Fisher
Facing Foreclosure?
Alternative Payment Plan Can Save Your Home
When the foreclosure of your
home by your lending institution seems to be looming
just around the corner, it can be a frightening and
embarrassing situation. But if you happen to be
facing foreclosure, it's important for you to
contact your lender, have an open, honest discussion
about your difficulty, and then try to work with
them to come up with a short-term alternative plan
that will get you back on track when your financial
situation improves. You'll generally find your
lender to be sympathetic and eager to help.
In some surprising results, a 2004 Freddie Mac study
showed that borrowers who contact their lenders and
work out a customized payment plan can reduce their
chance of losing their home to foreclosure by an
amazing 80 percent! Among low-to-moderate income
borrowers, the figure is somewhat lower, but it's
still right around 68 percent. Either way, those
figures represent a significant chance for you to
save your home -- and they are options well worth
pursuing.
Wells Fargo Home Mortgage also discovered a similar
trend in their own recent study, and as a result,
the company has begun to actively try to educate
borrowers about what their options are when they
find themselves in financial difficulty. The Wells
Fargo study mirrored the Freddie Mac findings, but
the truth is that most lenders will be similarly
helpful when a borrower contacts them and lays out
their situation so an amicable agreement can be
arranged.
Make no mistake: facing foreclosure can be one of
the worst times in a person's life, but you CAN save
your home if you're willing to summon the courage to
talk openly and honestly with your lender to find a
short-term solution to your current financial woes.
Remember, your lender doesn't WANT to own your home,
so they'll generally be glad to work out an
arrangement to help you keep it. If you want to get
some ideas about what kinds of arrangements can be
made, call your lender and ask them about a "Workout
Plan."
Don't wait. If you're late with a mortgage payment,
gather all your mortgage information, figure out
what you can do to make up past payments, and call
your mortgage company.
Copyright © 2006 Jeanette J. Fisher
How to Cope with Credit Card
Debt
As interest rates rise and the economy slows down, many
people find themselves in over their head, especially
when it comes to their credit cards. Here are a few tips
for coping with your
credit card debt
Jeanette Fisher teaches how to get out from
under credit card debt, how
to use credit to make money, and six ways to build
strong credit to finance your first home and
multiple investment properties. For a free credit
advice and free ebook "Credit Tips for Mortgage
Financing," see
Worry-Free Credit Information: Free credit card debt
help today!
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