This post is in response to the person who visited my website today using the search term “terrified to call mortgage company about my foreclosure.”
My heart goes out to this googler. Not only is she losing a home, but she is additionally paralyzed by fear (and probably guilt) over the situation and unable to act. There are way too many people in this situation right now. And unfortunately, avoidance is only making things worse.
So if this is ringing true to your life, here is my advice:
CALL YOUR MORTGAGE COMPANY IMMEDIATELY. They don’t want to take your house. In this economy, not only will it not make them any money, but it will cost them big bucks to get it turned around and back on the market. Mortgage companies don’t want to own houses. They will do anything they can to keep you in yours.
Try to keep in mind that although this is possibly a humiliating and unthinkable event for you, nothing you have to tell the bank will be something they haven’t heard before. You aren’t alone and the representative you speak to will be unlikely to admonish or scold you. The rep won’t be happy, but he most likely won’t mock you either.
Take the tactic that you want to work with the bank to make this have the best outcome for both of you. What do you need to get through the rough period? A deferment of payment for a few months until you find a new job? A reduced interest rate to lower your payments? An extended loan period to lower your payments?
Let them know what you are doing to make things better. Are you job searching daily? Cutting back on non-necessity spending? Convey all of this information to the bank to let them know you’re doing your part in all of this.
I’m not saying the bank will make this easy. You need to be diligent with paperwork they will request and you may have to call back several times (I took a class a few weeks back where the instructor told us that banks train their representatives to say no to any request three times). Don’t be deterred.
You have options in this situation, but it’s important to get out in front of it. Don’t let your fear drag you down further. Man up and call.