Check List of things you must do ASAP! (continued...)

3. Call your Lender.

 The most dreaded of these steps is to actually call the number on your statement(s) and talk to one of the loan officers about your options. This is a crucial step in getting your loan back under control. Be honest with them and give them all the information that they request about your situation, but let them know the reason for your hardship and why you have fallen so far behind. Their corporation may have no heart, but many times the person you are speaking to on the phone does.

The majority of the options you will have to cure this loan will be offered to you at this step, but they differ greatly from lender to lender, so we can’t tell you what exactly to expect.

Don’t forget to do this for each & every lender that you are behind with!

4. Ask for a Forbearance Agreement.

A forbearance agreement is a rare gem that moves your payments around, tacking the payments you missed onto the back of your loan, to be paid after your loan was supposed to be paid off. Best of all, you can start from day 0 again now with no penalties.

If the lender didn’t offer it to you while on the phone with them, ask them specifically for a forbearance agreement by name before you get off the line. Make sure that your hardship sounds, and is, legitimate, then ask or beg them for one. The one catch that they will be sure to want to see is proof of new income. If you haven’t secured new income, it won’t hurt to ask for one, but you’ll likely be denied.

Sometimes it’s corporate policy not to issue them, and sometimes they only offer them to homeowners without much equity. But if they do grant you one, it will be very worth the trouble.

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