Save Your Credit and Avoid Foreclosure

Lenders don´t want to foreclose. If you can´t make your mortgage payments, even if you owe more than your house is worth, they´re often willing to work with you. When you call the lender, ask to speak to the "loss mitigation" department.

Calm your nerves and read the following tips before calling:
1. See if your monthly statement contains the phone number to the lender's loss mitigation department. If not, call the customer service number and ask for that department. At most lenders, the loss mitigation department helps borrowers determine which workout option they qualify for. Some lenders have their collections departments advise borrowers on workout options, borrowers may be sent to their collections department.

2. Be ready to wait on hold for a long period of time. Its not a good idea to call on your cell phone to rap up your minutes, charge your phone in advance and be ready to hang on the line for a long period of time.

3. Some representatives in the loss mitigation department are cranky, mean, over worked and not trained. If you are being treated badly or if the information that you are being told doesn't sound or seem correct, remain calm and polite, get as much information as possible, hang up...and then call back.

4. Share all details about your financial situation with your lender.
Your lender will ask a series of questions to assess your financial situation. Some lenders, like Wells Fargo Home Mortgage, have specialists with both the training and technology to pre-qualify a caller for a workout option right over the phone. Other lenders do not have this technology and will send you a "work out package" to complete and send back to them.

By preparing yourself in advance, and having the financial documents including income and expense numbers in front of you when you make the call, you might be able to get a resolution within minutes. The lender will probably ask you to fill out similar documents that describe your financial situation. They will review and analyze the documents before offering a solution to bring your loan up-to-date. So organize your bills, statements, and anything else that will help give an accurate picture of your current financial status.

- An explanation of your current financial circumstances.
- Details about your current income, including pay stubs, statements regarding unemployment, disability, social security, retirement, pubic aid, or and other similar documentation.
- A list of your household expenses.
- An explanation of what occurred to put you in this financial circumstance. Otherwise referred to, as your hardship.