Don’t throw in the towel just yet

October 24, 2008

thow-in-the-towelIf you’re about to throw in the towel and just walk away from your home and mortgage you really need to reconsider. There are numerous great options available to you. Ignoring phone calls from your lender isn’t one of them. With a bit of effort and smarts you can solve your financial crisis and not have the nightmare of a foreclosure plaguing your credit report for the next 7+ years.

You might think I’m biased here, but hear me out. If you’re a few months late on your payments now is the time to call a good Realtor. While I happen to know one (me) I am suggesting you call ANY decent Realtor. A knowledgeable Realtor can help you explore the various options available such as a loan modification or a short sale. Don’t assume the banks are out to get you and sitting there at the corporate headquarters giggling about how they can’t wait to kick you out of your home. It just isn’t happening. Your lender does not want your home. They want money from you or from someone else. But there is no wild-eyed banker plotting to boot you from your home.

“But will they boot me?”

In a heart beat. Well, not an actual heart beat. Probably more like 20,000,000 heart beats…but who is counting? In Florida the foreclosure process takes about 5 – 6 months at the minimum. The time for action is the moment you start to slip behind in your payments. You need to be on the phone with your bank, and specifically the Loss Mitigation Department, discussing how you can get out of this predicament. Your bank will work with you if you give them a call.

“But I have called them and they were rude and mean and nasty!”

If this is the case you were probably talking to an idiot. Yes, you heard me right. If your lender doesn’t treat you with respect for making an effort to communicate with them and work towards a resolution then they’re idiots. It costs $20,000 or more for that bank to hire an attorney to initiate the foreclosure process. And then the costs start to really add up as the process moves along at a snails pace.

Most banks will treat you fairly and professionally, but few will offer empathy, sympathy or a shoulder to cry on. They’re dealing with thousands and thousands of other delinquent files and they cannot afford to get emotionally attached to you or your problems. If you call and get someone rude, mean and nasty politely end the call, wait an hour, and then call back. You’ll probably get a completely different person. And if this 2nd person is rude, mean and nasty then it is time to call me. I happen to specialize in dealing with rude, mean and nasty banks.

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