What do you say to the panicked borrower who has been served with court documents at the commencement of foreclosure?
- The borrower needs to communicate with the lender to see if they can work out a payment plan, or plan to sell the property. Nothing puts a lender more on edge than a borrower who doesn’t communicate.
- Find out what stage the foreclosure is in: If it’s near the beginning, there may be things you can do to help. If it’s the day before the title transfers to a new owner, it’s probably too late.
- Have a plan. When talking to the foreclosing lender, have a suggested plan in place. Simply asking for more time or for the lender to make concessions is likely going to be denied.
- The hard truth: Sometimes it’s too late or the borrower’s problems too big. Be prepared to suggest that the best course of action is to sell the property quickly if they can. If there’s no hope, then adding more debt won’t help and it’s always better for a borrower to sell their own property rather than have the lender sell it for them.
As a MIC, foreclosure rescues are a regular part of our business. If they can be handled correctly, there is a path to saving the house for many of them.