How To Save Foreclosure By Talking To Lender

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Julie Parker

Julie Parker was born in March 19, 1983, in Lancaster – Los Angeles County, California. Her father is an experienced economist and businessman, who motivate her taste for the real estate market. Recently, graduated in Economics and now focus her studies in a PhD. Now she’s a consultant and webwritter of ForeclosureListings.com

The true experience of Rita and Larry Schels, a couple of Middle Island can be a guidance for other home owners. Making a combined income of six figures, Schels were comfortable till three years back. But due to unforeseen circumstances, Larry’s income from making monuments of granite stopped and their position went critical. Their original mortgage of house had to be refinanced through sub-prime, the interest rate changing from 5.5 per cent to 7.5 per cent and the monthly payment escalated to $1,700. Larry’s health set back in the last three years, throat cancer, heart troubles and a stroke, saw to it that he had to live on the meager $1800 disability check and his wife’s small earnings. Now the couple is behind their payments and just one payment away for inviting foreclosure process. Larry was determined to save their house, irrespective of their very poor financial condition even to meet the therapy expenses. For the last two years the Schels informed that their mortgage Company – Litton Loan Servicing – could not do anything to mitigate their grievances, even to reschedule the monthly payment after receipt of the disability check.

But events turned dramatic last month, when a reporter contacted the Litton Servicing Company and announced the good news to Schels that the Company is agreeable to modifications whereby the interest rate is reduced to 7 per cent, missed payments and late fees to the tune of $10,000 deferred to the end of the loan period. The couple is happy that they can get back in track and saved the house from foreclosure proceedings.

The Chief Executive of the mortgaging Company, Litton informed during an interview that they missed information from the Schels couple and had they been contacted earlier, they would have helped them to work out the loan suitably for the mutual benefit. He further explained how the Schels couple can be example to others inasmuch as the gravity of the situation where the mortgage company and borrowers are hit hard by the credit crunch. According to him his Company is facing more number of modification of the mortgage loan conditions now – 3500 from 700 last year. He further regretted that the financial position of their customers is deteriorating rapidly and hence his Company is furthering up communication with its customers in sorting out the issues.

Legal experts on the field of foreclosures, representing banks and lenders, also feel that borrowers should not hesitate to contact the lenders or their attorneys first while facing the problem of foreclosure threat by missing a payment and the lenders are sure to come forward in working out solutions, since foreclosing a property is a menace to them also.