Why the Worst Thing is To Ignore Your Bank

Why the Worst Thing is To Ignore Your Bank

It is human nature to avoid the unpleasant, especially when it comes to creditors calling you and writing you collection letters. Many distressed homeowners are in denial that they are in financial trouble or are embarrassed to admit it. The worst thing you can do is to ignore your bank when it comes to your home.  Banks won’t go away like some of your other creditors. It is not as simple of a matter to ignore a default on your mortgage payment as it is on your credit card payment. If you are late on your credit card, the bank may cancel the card. But if you are late on your mortgage payment, the bank will foreclose on your home. Doing nothing only makes matters much worse.

Communicate with the Bank

Far too many homeowners don’t know what to do when they are in a situation where they may be facing foreclosure. Many of them could have saved their homes from foreclosure had they not panicked, abandoned their homes and ignored their bank’s phone calls and letters.

By communicating with your bank early on as soon as you realize you may be in financial trouble, you may be able to save your home from foreclosure.  Start with picking up the phone and making a call to your lender, and go from there. It makes more sense than just ignoring the problem or even worse, abandoning your home prematurely.

It is also a good idea to write your bank a letter explaining your financial hardship and asking them to work with you. As long as your bank knows what is going on, they will want to help you.  A foreclosure proceeding can cost your bank as much as $50,000. They would rather find a solution to the problem and save themselves time and money. 

By explaining your financial situation and letting your bank know upfront what is going on, you will be proactively finding a solution to your problem. This way, the problem will not be escalating and eating away at you, causing undue stress and making you feel overwhelmed.

Seek Professional Advice

While you are communicating with your bank, it is also a good idea to seek some professional advice from your Realtor, financial advisor and/or your attorney.  Exploring all your options and educating yourself is important towards working out a solution with your bank. If you want to keep your home, you may want to negotiate a short refinance or a mortgage modification with your bank. Or perhaps, you just want to sell your home and downscale or rent for awhile until you get back on your feet financially. Then a short sale might be the right solution if you are upside down on your mortgage.

The Cameron Team are real estate professionals with experience in helping our clients find solutions to save their homes from foreclosure.  We have established relationships with many banks’ loss mitigation departments which make it easier for us to get the results you want and need.  We also work with a professional negotiator who has an 80% success rate with short sales, compared to the 20% industry average for most short sale approvals. We can refer you to an attorney who will give you a free 15 minute consultation.

We are here to help you find a solution and save your home from foreclosure. The more homes we help save in the Scottsdale, Phoenix and surrounding communities of McDowell Mountain Ranch, DC Ranch, Silverleaf, Grayhawk, Desert Highlands, Troon, Desert Ridge, Tatum Highlands, Dove Valley, and Tatum Ranch ,  the better for everyone.