Friday, I received a call about 15 minutes before I was supposed to leave for the day (no, it wasn’t 1:45 :)). 

The woman calling had received a notice of sheriff’s sale because she had not been able to make her mortgage payments.  She had an adjustable rate mortgage that had adjusted for the second time in less than a year, pushing her payments up over $500 per month. 

She wanted to know if I could help. 

I gathered the appropriate information, faxed her what I needed her to sign and asked that she fax everything, including the request for sheriff’s sale that she had received, back to me right away.

When I looked over the court order for the sheriff sale, I noticed that the sale was scheduled to take place October 31st.  I had less than 3 days to save her home, and I just received her application.

I asked if she had spoken to her current mortgage company.  She confessed to me that she had refused to answer any of their calls, ignored all the mailed notices, and I was the first person she had spoken to about her situation.

Unfortunately, this is not the first time I have dealt with something like this.  In fact, mortgage servicers show that nearly 50% of all mortgages that are foreclosed on, they never are able to make contact with the borrower. 

If you are behind on your mortgage payment, no matter if it is 15 days, 30 days, 60 days or more…you need to speak with your lender. 

I understand that it can feel embarrassing to have to admit you are unable to make your mortgage payment.  But, believe it or not, mortgage companies don’t want your home back.  The costs involved to foreclose on a home are high and they are rarely able to sell the home for more than 70 cents on the dollar once placed on the market.

The earlier you work with your mortgage lender, the more options they may have to work with you.  If you don’t want to work with your lender.  Start looking at your options available to you elsewhere. 

The FHA Secure loan was designed for people who had good mortgage payment history until an interest rate reset on their mortgage.  You can behind on your mortgage, no matter how behind, and still be able to qualify for this type of loan.  The FHA Secure loan, may be able to help you even if you owe more than what your home is currently worth.

If you are behind and facing foreclosure due to  an adjustable rate mortgage rate reset don’t avoid your mortgage company, open a dialogue with them.  Then contact me to see if we can do something together to get you into an affordable fixed rate mortgage.