If your home or other real estate property is about to be foreclosed, but you haven’t done anything about it, you can’t just sit there, do nothing, and wait for the government to help you. Any government assistance—if you’re entitled to receive any—might come too late. You need to act, starting right now. A good way to start is by reading the 2007 book, “Stop Foreclosure Now,” by Lloyd Segal.
Even though it may not cover the latest federal legislation and loan modification programs, the book can help you by suggesting what to do and not do. It summarizes, in reader-friendly terms, the foreclosure laws in all the states. And it provides helpful action plans, such as Negotiating with Your Lender.
According to the author, there are 11 negotiating strategies:
1. Act immediately.
2. Respond to all calls, letters and e-mails.
3. Make sure you are dealing with your current lender.
4. Negotiate in the spirit of cooperation.
5. Talk your lender’s language, not yours.
6. Explain reasons for the non-payment.
7. Know the facts.
8. Don’t make promises you can’t keep.
9. Remind your lender of its foreclosure costs.
10. Consider working with a foreclosure consultant.
11. Learn about your lender.
In case you’re puzzled by #3, the author explains: “Although you may be receiving monthly statements, letters and telephone calls from a certain company, they may not actually own your loan. The company may be acting merely as the loan ‘servicer’—a company (occasionally your former lender, if they sold the loan) that receives a fee for administering loans. A loan servicer may not be as willing to avoid a foreclosure as your current lender because the money is not theirs. They are only responsible for collecting the monthly payments. In contrast, the actual lender may be more accommodating as to how and when they will be paid back. So, it behooves you to go around the servicer and contact your current lender as soon as possible.”