How to Resolve Disputes With Foreclosures
Homeowners who are facing foreclosures are having difficulty sorting through the paperwork needed to stop them. Lenders are supplying general information about the process but not offering assistance on how to complete it. This disconnect is where homeowners have difficulty getting through the process. Incomplete paperwork and income verification are two of the main reasons for customer disputes. Preparing your numbers before you call and keeping records of all documents you send will reduce your chance of being denied. Understanding the process and communication with your lender is key to resolving disputes with foreclosure.
Other People Are Reading
Things You'll Need
- Lender's phone number
- Mortgage account number
- List of expenses
- Hardship letter
- Monthly income for each person living in home
Instructions
-
-
1
Add all of your expenses. Gather expenses, and write them down. The lender will need to get a snapshot of your current situation. Cut out all unnecessary expenses. Do not list items like hair and nails appointments and entertainment as expenses when you have fallen behind on your house payments.
-
2
Write a hardship letter. The lender will need to understand what happened to put you in this position. Be honest and forthcoming. Details are essential; you need to appeal to the person you will talk to and have him view you as a person and not an account number.
-
-
3
Add up your current income. You can use any income from all persons living in your home. The lender will need to get a clear financial picture of what income you have. You do not have to be married to the person to include her income. You will need to provide proof of income with W2s and two years of income tax returns from each person.
-
4
Get helped by a HUD certified counselor Detail any disputes you have with the process, and keep all supporting documents. The lender might say you missed a payment on your trial modification, or you failed to send in two months of income. If you have your canceled checks to back up your dispute, the lender will be eager to assist you through the process. If you do not have the documentation you can call a HUD certified counselor to assist you.
-
5
Tell your lender what you want. If you want to keep your house, you will need to prove income and be able to pay your mortgage. The lender will be able to qualify you based on the expense information you provide. The lender will then detail what programs you qualify for based on your situation.
-
6
Consider a short sale Ask what other options are available. If you don't qualify for a modification for lack of income, you may want to consider a short sale. The home will be sold for less than you owe on the mortgage. You can usually negotiate a reasonable amount of time to locate another residence.
-
7
Call the executive office of the lender. Return all documentation to lender in a timely manner. The lender can reject your documents if you do not return your paperwork by the date it requests. Your financial picture and ability to pay will determine what option you can secure. Make a copy of and file anything you mail. If you have any disputes with customer care, hang up and call the executive office of the lender.
-
1
Tips & Warnings
Keep all canceled checks and bank statements to prove any disputes with payments.
Keep a record of the time, date and name of person you spoke with.
A notice of default and a notice of foreclosure are not the same.
If you do not understand the process, get help from a HUD certified counselor.
