The number of home foreclosures is expected to rise to more than 8 million in the next four years, unless the government steps in to help. A local mortgage broker says there are some things homeowners can and should do before they fall into that same boat.
Terry Bloom says if you're falling behind on your mortgage payments, act now before its too late. He says when your lender calls about late payment, don't dodge the call, talk to them and figure out a way to strike a deal or to get payments reduced for a while. Lenders oftentimes will change your mortgage from an adjusted to a fixed loan, and possibly lower your interest rate, because the bottom line is both the homeowners and lenders lose out when a home goes under.
"Because of the market and home values dropping, lets say the value of that home is now 170 thousand dollars, there already 20 thousand dollar upside down. If the lender forces foreclosure they might only get 140 thousand dollars for the home if they have to sell it on the market or put it on auction, which means that's a 50 thousand dollar difference in principle amount let alone attorneys fees."
Bloom says if your lender is being difficult, ask to talk with a supervisor. And f the supervisor is uncooperative, he suggests calling an attorney.