Published on Monday, 22 February 2010
People panic when faced with a foreclosure. But instead of panicking and not doing anything about it, you must face the music. You should instead go to your lender within 30 to 60 days after missing a payment or two or after receiving calls and notices from them. Remember that the lender would most likely listen to your situation and maybe give you a more affordable monthly payments and affordable interest rates. But it would usually mean a longer term. Still, the point is a lender would be more helpful just so they can avoid repossessing and they would be able to recover the money they lent you and collect some interest charges. Since it is not their main business to auction property, they would like to avoid it as much as possible. A house counselor would be able to help you deal with everything better. But be sure you have all documents complete when you approach one or go to the lender. For instance, you should have the communications from your lender including the foreclosure notice and your most recent mortgage statements. You should also show two months pay stubs and proof of other income. You can also include your last 2 bank statements. This will make the process faster because it would be easier for the lender to assess the best deal for you. Again, the best deal would most likely be a lower monthly payment or a lower interest rate. But you would have to pay a longer term. You will be able to afford the monthly payments. But the lender also earns more on the arrangement. The lender is even better off in that foreclosure is avoided and they recover the money they lent you.