Archive for the ‘Economy’ Category

Dealing with Pre-foreclosures

Thursday, September 20th, 2007

 Post by Matt Shiles – Realtor

Today Treasury Secretary Henry Paulson was seen on MSNBC talking about the Mortgage crisis with members of the House Financial Services Committee. He was discussing the possibilities of national standards being put in place for mortgage originators.  Paulson says that it would be a step in the right direction to have these national standards. 

Paulson also addressed the rising issue of foreclosures.  He explained to homeowners that problems with late payments should be dealt directly with their lender as these problems arise.  No one in the business profits from foreclosures so most lenders are willing to work with your situation to fix the problem before it gets out of hand.  For a lender the process of foreclosing on a customer can be  pricey, therefore they want to help you even if that means changing payment plans. 

 It is very important for homeowners to understand this concept.  It seems like the automatic response of people who fall behind in payments is to hide from the collectors.  With your mortgage, addressing the issue before it is too late can mean saving 100 to 150 points on your credit score.  This should be motivation enough for homeowners to face the issue and do what they can to aviod foreclosure.