Preservation and Foreclosure Prevention: Working with Lenders

As soon as you think you may fall behind on a payment, call a foreclosure counselor, or call your lender directly (also known as the servicer or company where you send your mortgage payments). When you speak to your counselor or lender, be honest. Explain whether your financial problems are temporary or long term. Also, have a good understanding of your other monthly obligations to ensure you are able to follow through with the solution your lender ultimately provides. When you speak to your lender, take notes, including the date of the call and the name or employee number of the person you speak with and write down what they say.

Some homeowners mistakenly believe that lenders want to foreclose on their homes. In reality, your lender would prefer that you pay your mortgage regularly and be a good long-term customer. Lenders lose money in the foreclosure process, so it is in their best interest to work with you to avoid foreclosure if at all possible.

Whatever you do, don’t walk away and don’t give up. Along with Take Root Milwaukee, your lender has access to many alternatives to foreclosure. Be persistent in working with your lender to find the solution that’s right for you.

Have these documents ready for the conversation with your lender:

• Last two pay stubs and most recent tax return
• For a self-employed borrower, a complete signed federal income tax return for the previous year or year-to-date profit and loss statement
• Bank statements
• Proof of other income like alimony or Social Security
• Information about any second mortgage on the property

In addition to your lender, Take Root Milwaukee provides free and confidential assistance to help you stay in your home. For a list of counselors, please click here.

Protect your future! Taking action early can help you stay in your home. Let us help you plan carefully before you make any decisions. Call the Take Root Milwaukee Hotline now, at 414-921-4149.