If You Receive a Default Notice
Are you one of the homeowners that fell into an adjustable rate mortgage, and have received a default notice? A word to the wise - do not panic.
Many homeowners panic first and think later. This leads to frustration and conflict, and can result in loss of money. Recent calls from homeowners stating that they fell in to a trap created by
companies, that offer a resolution on their default. Here is what
can happen - you go on the web in search for assistance and enter your information. The phone begins ringing with promises of how they can get the bank to modify your loan back to the original rate. And, if they are unable to deliver, you get your money back. Why pay someone for something you can do?
One thing often heard, is that they are advised by the third party
(Mediators) not to talk to the mortgage company, and to let them do all talking on their behalf. Well in short, mortgage companies want to talk to you and not a third party.
When talking to your mortgage company, be adamant and do not
accept “no” for an answer. Insist on talking with some one else, if you, are not heard by the person, you are conversing with. Your best contact is the loss mitigation department. First they will want to know if you want to stay in your home, and then your capacity to pay. They will need financial information. Be honest with them.
Remember they are interested in resolving issues and saving
your home to any extent possible. If it does not work on first try, call them back later. Don’t let that bring you down. Do not settle on what is not doable to you. The most feasible deal is where you are set back to starting rate on a trial bases for a few months and the overdue amount added towards the end of mortgage.
Your request for modification is then sent to the investor, who holds your mortgage, for approval.
If you have a second mortgage, you may wish to contact them as well to work a modification.
Your mortgage company can work with you, even if a trustee sale date is set, so don’t pack so quickly.
There is also a non-profit organization, “Springboard” also try 1-888-995-Hope. Springboard does not charge you a cent. Springboard is funded by mortgage companies, and by private donation. They will take your financial and email your mortgage company requesting consideration.
We wish you the best – Good luck to you!
Written by Jarina Mohammed
GreatWest GMAC Real Estate
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