Some of the leading mortgage industry experts got together to discuss some of the biggest problems and myths about mortgage servicing. They came up with the top 5 reasons delinquent borrowers try to stay out of touch with their servicers, and they point out why that’s exactly what you don’t want to do.
Do you fall into any of these categories? Check them out and see:
1) If a homeowner can’t bring his mortgage current he figures it’s best if he cuts ties. After all, if he finally talks to them it’ll speed up being foreclosed on.
2) Borrowers just plain don’t trust lenders. So if someone calls claiming to want to help, it can make people suspicious.
3) Mortgage servicers are focused on just one thing: a mortgage. And what a lot of borrowers need is a financial adviser. So if you can’t fix the underlying problem, working on your mortgage won’t help.
What’s important to realize is that servicers do often want to help you out. Even if you can’t bring your account current, it’s worth hearing your mortgage servicer out. Just getting them to put the account back on their books as a “performing loan” is a big plus for the lender and that’s good leverage for you.
So if you’ve been ducking those phone calls, maybe consider answering them. You might be surprised.