Fact: Banks will lose 60 percent on a foreclosed property. With almost a trillion dollars to lose, most banks will work with you on reducing your mortgage to minimize losses.
There are other ways to resolve your mortgage problems. To sell a foreclosed property, some banks are forced to hire contractors to fix up the property to make it marketable. A good example is the house right next door to me.
My neighbor went into foreclosure six months ago. The property is in dire need of renovations, just to make it market ready. Their bank has hired a contractor to perform such repairs as replacing the carpet, interior painting, fence repair, and landscape clean up.
Now the cost of a contractor is very expensive. You could offer to make the property market ready for the bank, saving the bank money while negotiating a lower mortgage payment. This way you can stay in the home until repairs are completed or avoid foreclosure altogether. This innovative approach requires some work on your part. Don’t wait for a government bailout which is never going to come.
Contact your bank representative, sit down and negotiate. Key in on the benefits of such a partnership. The pros far out weigh the cons. Once the bank realizes your commitment to work out a solution, they may be willing to negotiate a new loan. If you do nothing, your credit is going to take a big hit. At minimum, contact your bank and start the ball rolling.
If the bank agrees, make sure you get the agreement in writing. Include repairs you are willing to perform and any reduction in your mortgage payment the bank is going to give you. Have the agreement notarized by a professional. If the bank draws the contract, have an attorney look at it before signing.
Author: Cityclix.net Staff Writer
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