Dear Concerned Home Owner –

Do you have one of the following loan programs - Negative Amortization Loan, Option Arm Payment Loan Program, or 2, 3 or 5 Year Arm Program on your Home?

Have you fully indexed or have you exceeded the maximum 110% or 115% of the original loan amount?

Has your mortgage payment doubled or even tripled?

Has the value of your Home dropped or decreased significantly?

Have you taken the steps to sell your home and it’s still sitting on the market and not selling?

Are you worried you are going to lose your home?

If any or all of the above are true about your circumstance then it is in your best interest to contact the Mortgage Lending institution that holds your loan immediately. The Real Estate Industry has been dealt a hard blow but there is good news.

First things first, there is NO fast and easy way to resolve this issue. It may take a few weeks from start to finish. You must be committed to follow-up and keeping notes of everything that has been communicated between the Mortgage Lender and You.

Remember Rule #1 – The Mortgage Lending institution that holds your loan is in it for the money, not for the home you live in.

Rule #2 - They do not want your home. They ONLY want your money.

Rule #3 - Lenders would prefer not to go through the foreclosure process, even if your home has significant equity. 

Remember they do not want your home. There is a way to negotiate with them, but you must contact them and ask what your options are.

Some lenders will put you into another loan program with an additional balloon payment or some other way to make up for your lowered payments. They do it for people in bankruptcy... why not you? Do not forget to ask for it in writing. This way you have the information at your finger tips at all times.

Some Sub-prime lenders will give you a grace period of 6 months by putting you into a payment plan and decreasing your monthly payment by about 25-33%, but this again is the tip of the mortgage program “iceberg”, you will have to pay it all back.

I had a client that was about to lose his home. His home wouldn’t sell and sat on the market for 5 months, even though it was significantly under priced and had a new master suite and chef’s kitchen. Today I cannot find him and feel that he must have lost his home.

I hope that he took my advice and contacted the Mortgage Lender, but I have no way of knowing.

REMEMBER – LOCATION, LOCATION, LOCATION

If you want your home to keep its value then you must remember where you purchased and then factor in the amount of time for a significant return. Those of you that have brand new homes and the majority of your neighborhood are for sale… You are in a real pickle, but there is hope.

This industry, just like the stock market, has highs and lows. Obviously this is one of the lows. REMEMBER I said “one of the lows” this can and will happen again. We will get through this time.  And remember the High’s are just around the corner.  Let’s hope that you have the staying power to move forward, even if it takes baby steps to make it to the other side.  Your Lending Institution is your partner, you want the house – they want the money.  You can work this out. 

There is always hope, we just have to look for it.

Please contact your Mortgage Lender today and see what process they are willing to negotiate with you. Do not be afraid of losing your home. You have the right to be informed of your options with your Mortgage Lender.

If you do not feel comfortable calling, write a letter specifying that you would rather be contacted by mail and ask what your options are. Make sure that you send your letter in an envelope that is certified by the United States Postal Service with tracking for your own records. If it is important to you to keep your home then you will pay the extra postage to make sure that your letter is delivered, even to a PO Box.

The United States Postal Service is the only mail carrier that will certify delivery to a PO Box and no one, not even a Mortgage Lender, is willing to become involved with the Postal Inspection Service. It is a Federal Crime to mess with the mail. The only catch to writing is that you may need to call in 15 days from confirmation of receipt if you do not hear back from your Mortgage Lender by mail.

Help!!   We need your feedback on what works with different Mortgage Lenders.

I was recently told that Countrywide would prefer to not foreclose on anyone, but I wasn’t given the details on how it works or what type of re-payment program they have set up. I’m sure that it is on a case by case basies. But we need to know so that we can spread the news before another families home is sold on the steps of city hall.

We are waiting to hear your negotiation success stories.