Losing one’s home is becoming all too familiar lately. Not talking with the mortgage holder right from the git go will definitely start the mortgage foreclosure process. Not communicating with your other creditors will also start a series of efforts to capture the money you owe them.
This article will deal mostly with with personal credit, some of which may be secured and some may be unsecured. The process is pretty much the same, except if the property is secured like your car or home the lender can collect it if they go through the proper channels.
If your ability to pay is about to change or has changed it is imperative you contact your creditors immediately if not sooner and explain your situation to them, in writing. Now is the time for crying in your beer or blaming your boss for a pay cut or a lay off. Just the facts sir. Your situation is changed, and this is what you can do and when you can do it. Short one page and direct to the point.
Crying is not good. Have plan made up to present to them and confident in your proposal and ability to recover or to maintain whatever it is your are presenting.
Talking with the mortgage holder about what you can do will get you big mileage when it comes to slowing down the mortgage foreclosure process.
Just remember to keep all correspondence in writing. If you get phone calls politely ask them to send a letter with any questions they may have and you will gladly answer them at that time.
If you don’t contact them early you can expect bad things to start happening pretty fast. One of the first things you will notice is you are very popular, but not in a good way. You suddenly find your creditors know what your phone number is and they are not afraid to use it.
They will be wanting to ask questions like, “Why is your payment is late?”, “When can we expect payment?” “How long until you will send in your payment?”. It is pretty frightening and intimidating to say the least, not to mention embarrassing..
My advice when this starts to happen is to be respectful and remember this if you can remember nothing else. He who asks the questions is in charge. So, never answer a question of the kind described. They almost always come back to haunt you. Answer a question with a question? Take charge of the phone call. Remember, you will be wanting to correspond in writing, not talking on the phone. Inform them of such and hang up.
If you are in danger or think you are in danger of your home going into foreclosure you need to get help to stop bank foreclosure process to protect your most valuable asset.
If you are and have been communicating with the creditors from the beginning you should not have any problem with collection agencies. These hired guns are not usually called until the creditor has given up on you. You want to keep it this way. In the mean time, get and become familiar with the Fair Debt Collection Act. It will prove to be of big help when dealing with the hired thugs if it ever comes down to that.
However, in regards to a mortgage you will probably be dealing directly with the mortgage holder, not some third party flunky. To stop the mortgage foreclosure process you will be dealing with a horse of a different color. This should be your first and primary concern as it is your home, unless you have already made the decision to let the home go to foreclosure.
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