You Thought You Were Doing the Right Thing…
Mortgage loans No Comments »In light of all the foreclosures happening across the country, it has come to my attention that there are still many people losing their homes when they didn't realize it was happening. Of course, you know if you are behind on your mortgage and in danger of foreclosure, but what if you took the steps to prevent it and were assured that it was going to be alright? What if you did all the right things and find yourself still in trouble? All the sudden you receive an eviction notice on your doorstep. Now what??
Don't panic! If you have taken steps to save your home, you need to follow through and follow up.
Follow through - If you signed a modification on your loan and sent it back in to the mortgage company along with a payment or two, you may think you are doing fine and have skirted foreclosure. For most, this is the case. Be sure and follow through with all the steps out lined in your modification. Some homeowners, however, are still in danger. It is important to keep up with all the conditions of your modification even if you hit a stumbling block.
Follow up - If you signed and sent in your modification and receive a notice of foreclosure or an eviction notice, contact your mortgage company immediately. Do not take no for an answer with them when they tell you there is nothing they can do, because usually there is. Ask for a supervisor at the mortgage company and explain the issue. Try to remain calm and remember that this person on the other end of the phone will be more willing to help you if you are respectful to them. Most importantly, contact the company that issued your modification and let them know what is going on. They will have more pull at your mortgage company then you will, so get them involved.
Chances are your paperwork got lost in the shuffle and knowing how overworked the loss mitigation and forbearance departments are right now, it is actually understandable. Here are a few tips to help you out:
~Be sure and write down the person's name that you talk to and what their position is and what was said on the phone.
~Be sure to send all communication with a provable acceptance such as overnight mail or certified mail that must have a signature for delivery or even get someones email address and communicate by email. The date and time stamp on an email cannot be changed and this can be a great way to provide proof of a conversation.
~If you speak with someone on the phone, follow it up with an email and confirm the conversation.
The foreclosure proceedings can be stopped and depending upon the circumstances, so can an eviction notice through the courts. Don't panic, stay calm, and be persistent.
In a previous post, I told you about how your credit score is calculated. (See ) Another issue that is considered is the length of time for each account and it's history. There is different weight assigned to each year of your credit history. So if you are battling with trying to repair your credit, you may want to reconsider paying off some of your old debt. For example, if you had a charge off four years ago, you may not wish to pay it anymore. Although many advisors will tell you to pay off all your old debt, you must remember that accounts only stay on your credit for seven years. So, if it is not an account that you can pay in full, you may want to leave it alone. Contacting your creditors can sometimes do more harm than good. In fact, as soon as you talk to your creditor, (the company that has your account in collections) and make any payment to them, it brings your account to a current collection account instead of being listed as an old account.