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Fight Back Foreclosure – Use Information Against Your Lender
A smart home owner can use a little known fact to their advantage to try to stop foreclosure by their banker. Did you know that it is more profitable for mortgage companies to help you retain your property than actually go through with a foreclosure? On average it costs the mortgage company between $50,000 and $100,000 to foreclose on a property. In the long run, it would be to their advantage for them to negotiate with the home owner to find a solution to the problem than evict them from their home. Many times, the home owner has to be the one to ask for an alternative option from the mortgage company though. It can be a "win-win" negotiating tactic.
What are the costs to foreclose? First there are the expenses of going through the legal process of eviction. The mortgage companies have to hire local attorneys that specialize in these types of procedures. Then there are fees associated with filing the lawsuits and eviction measures. If the home owners fight back, then the lender’s legal fees begin to mount quickly. Once the legal action or eviction notice is final then the mortgage company has to pay the costs of evicting homeowners if they oppose leaving the property voluntarily. A banker with any intelligence would want to work with a home owner to stop foreclosure.
After securing the property from the evicted property owner, the bank is then left to deal with the consequences. Often, if a home owner doesn’t have the income to keep up their mortgage payments, they also didn’t have the cash to repair the property either. And some of them, in anger over the whole situation, destroy the property before they walk away. All of this now falls on the mortgage company to deal with. Whether the property was damaged due to neglect or spite, the mortgage holder will usually not do anything about it. This makes the value of the property fall and the longer it is empty the further the value declines. In the end, the mortgage company will receive far less for the property than what they would have if they had worked with the owners to stop foreclosure before it began.
Even if the mortgage holder doesn’t do anything to preserve the property, they still have to deal with the added expenditures in owning that home. Any taxes that are due on the property have to be handled by the mortgage company. And, some level of home owner’s insurance will be required on the property to protect the lender from accidents to the property. And when they try to market the property, the mortgage lender will need to use local real estate agents. That means they will accrue commission fees when the property is ultimately sold. There is absolutely no profit for a bank to incur those costs when it would be more effective for them to negotiate with the current home owners. This is just one piece of information that can help you to halt foreclosure.
By: Nick Adama
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March 26th, 2010 at 3:50 pm
I am always searching online for articles that can help me. Thank you