Session 3 - Foreclosure Series

Welcome to another week of this blog series designed to help individuals and families understand and plan for the foreclosure process.  This week's topic - Have a Plan!

We all know that having a plan makes sense but many in the throws of a potential foreclosure tend to lose all sense of control - this is the deer in the headlights scenario that I mentioned in a previous session.  The legal reality is that you are not subject to the whim of your lender and you can take control of this process in order navigate out of it in the most successful way possible.  So here are some initial suggestions:

1.  Communicate with your lender.  First, find out who your lender is - this can be a real challenge.  Look for clues in the documents provided to you.  Legal papers will include the lender's attorney.  Papers from the lender can serve as clues but may only be coming from the loan servicer.  Ask who your lender is - you can respond to any phone calls with a letter indicating to whom you've spoken.  You will fare better by opening the lines of communication rather than adopting a code of silence.  I do qualify this advice by saying that it is not generally beneficial to admit liability for any debt so you should focus your communication to your objective which is most likely to obtain a loan workout, short sale approval or a deed in lieu (three topics to be discussed in future sessions) and refrain from elaborating too much about the hardships in your life (it may be advisable to consult with your attorney concerning any responses to your lender).  Start and maintain a log of contacts.  Find out who is responsible for your loan and who has the authority to negotiate.  Find out who the lender's CEO is, as well as the branch manager of the branch (if applicable), the loan officer who helped you (if they are still around), and record any other person you know in the lender's office. 

2.  Gather your documents.  Find and categorize all of the documents that relate to your property and your loan.  Typically, such documents would include:  copies of your promissory note/s, copies of mortgage/s, copies of documents or letters in escrow, property profile, copies of all letters sent by or received you and/or sent or received by lender, and copies of all foreclosure documents. 

3.  Learn the clock.  Research (or ask your attorney) what the timelines are for the foreclosure process.  In Florida the process will take a estimated minimum of 20 - 30 days from your receipt of service of the foreclosure papers from the lender's attorney (this is in the event you do not respond to the documents).

4.  Decide whether to attempt to keep your home.  This is a topic unto itself and will be discussed in future sessions.

I hope this is helpful.  Until next time . . .