I talk to 30+ people a day about foreclosure problems and how to stop foreclosure and I’ve been doing it for about 10 years. Through all these years and clients, there is one thing each of them have in common: None of them are comfortable talking to their lender(s). In my foreclosure experience, there have been very few exceptions to this rule.
Why don’t foreclosure victims want to talk to their lenders or loan servicing companies?
For one, they’re usually pretty upset about the whole situation and many people direct this anger towards their lender. Most lenders will force their victims to remain on hold for a very long period of time before speaking to an actual person. Sitting on hold and being hung up on by an automated voice is never a good start to a conversation The result is a foreclosure victim acting hostile towards the customer service worker on the other end. When a victim takes out their rage and anger on an operator, who probably makes $9.00/hour, it greatly decreases the likelihood of that operator providing help to the victim. When a foreclosure victim has one bad experience on the phone, they immediately assume their lender is not going to help, and they give up. The thought of going through the whole process of sitting on hold and arguing with someone who eventually tells you they can’t help, is too overwhelming to attempt again.
It’s must also be very frustrating when the person on the other end doesn’t seem to care about your situation. They virtually throwing you and your family out on the street, and they don’t seem to care.
You have to remember, these operators hears 10-20 different foreclosure “sob” stories a day, so they could care less about your situation or “story”. They just want to make it through the day, and collect their paycheck at the end of the week.
How can you solve the problem of communication with the foreclosure lender?
The first rule of foreclosure is to stay in constant (and friendly) communication with your lender. So foreclosure victims must either give in to their anger and the frustrations of regular calls and sitting on hold, or they can hire a professional to do it for them. Hiring a professional has many advantages over doing something like this yourself, but in some cases, they cost may outweigh the benefits. If you plan on doing it yourself, you’ll need to consider the cost of not only your time and efforts, but the long term cost of the plan you negotiate. Here are some key points to remember for both scenarios:
If you are speaking with the lender yourself, make sure you choose the right emotions. It’s okay to be emotional, but it’s not okay to be angry or rude to the person on the other end. They are only doing their job, and if you treat them with respect, they will most likely do the same for you.
When negotiating a workout plan or loan modification, you may be better of letting a professional take over for you. Someone who has daily experience with loan modifications or workout plans will be able to get you a better deal and can save you $1,000’s of dollars on future payments.
If you are speaking to an operator that is unhelpful or rude, don’t be afraid to ask for someone else, or call back and try to find someone different.
Keep good notes and record conversations when possible. Make sure you know the name and id number of every person you ever talk to.
Get everything in writing. If your lender makes a deal, make sure you get it in writing and make sure it is exactly as they explained it to you.
Complete all paperwork and return it the same day. When you are speaking to someone who is willing to help you, make sure your case doesn’t get transferred to someone else by waiting too long to send back the paperwork they ask for.
How do I decide whether it’s worth hiring someone to talk to my lender?
In my opinion, as long as you know their history and they are qualified, hiring a professional is always to right choice for someone in foreclosure. All the stress and time you’ll spend on the phone is hardly worth the few hundred dollars you’ll pay to let a professional handle the problem for you. The key is to contact your lender first and find out what they are willing to do for you, then contact a professional foreclosure help company to find out if they can get a better deal than what your lender offered. Some lenders will offer you a great deal, right up front and others will not offer any assistance at all. Either way, having a professional help guide you through the foreclosure process and spend countless hours on the phone at your behalf, will be well worth the investment.