Wendy Smith

Reinstatement is defined as "the act of restoring someone to a previous position". That is usually the goal of a homeowner who wishes to stay in their home and avoid foreclosure - the homeowner needs to be restored to a current position with his or her mortgage.

The 3 typical ways to reinstate a mortgage:

•1. Full Payment

•2. Forbearance

•3. Loan Modification.

Details of each in this previous post: Reinstatement-Save My Home from Foreclosure

It is entirely possible for a homeowner

to negotiate a repayment plan with the lender.

Should you try to negotiate with your bank on your own?

There are plenty of warnings advising homeowners against paying a fee to a third party to stop a foreclosure. Many offer contact info to federal programs designed to help homeowners facing foreclosure such as www.hud.gov. However.....there are some things that simply require experience.

Four Reasons to Hire a Professional:

•1. You can't seem to get through to your lender or you've made contact but information is inconsistent or inaccurate.

•2. You are making too many "personal calls" from work trying to handle saving your home or the stress is really starting to take it's toll.

•3. You recognize that the Home Retention reps work for the lender and have one objective: get the payments from you. Their focus is in the best interest of the lender (naturally).

•4. You want to know all your options, not just what the lender is telling you.

Caution: Be careful who you trust.

• ask for credentials (e.g. member BBB, Realtor, attorney, etc.)
• get the Work Agreement in writing - plain English to describe exactly what will be done for you - and what won't be done
• ask questions! ask questoins! Don't assume anything.

Good Luck.

Many of us have been there and experienced that sinking feeling when you know you can't make the house payment. People who find themselves in this situation go thru a variety of feelings that often include embarrassment, stress or guilt. Not being sure of what to do or who to call, too often they do nothing which only makes matters worse.

Take these 4 Steps:

1. Admit that there is a problem - you are having a financial crisis if you are falling behind in your house payments. Admit that it is time to look at your budget & money management.

2. Ask for help. Ask now while the problem is small and manageable rather than waiting for the crisis to get worse. Your ego will have to take a back seat for now.

3. Contact your lender. It can seem impossible to get thru but make the effort - phone, fax or even write but make contact. **

4. The quicker you take action, the more options you have.

** More and more frequently, the feedback from homeowners is that contacting their lender is nothing short of a nightmare. Reps in the Home Retention departments have been known to chastise, threaten and belittle homeowners. Many are seldom helpful and homeowners get the run-around and inaccurate information. Of course all lenders aren't like this. If your lender is in the "nightmare" category, then consider hiring a professional. Many offer a free consultation.

Most importantly, take action.

www.WendySmithRealEstate.com - Foreclosure Consulting & Intervention