If you are facing foreclosure, you have options.  Many times, your first and best option is to work with the lender.  It is regularly said in Court that “the bank does not want your home,” and it is true.  From the lender’s perspective, it would much rather have a borrower that pays back a loan, than a home that it must sell for less than the home is worth. 

Two options that may be available to a borrower are forbearance and restructuring.  A forbearance takes place when the lender refrains from exercising its rights to proceed with a foreclosure for a period of time in exchange for the borrower meeting conditions regarding the loan and possibly paying a forbearance fee.  A restructuring takes place when the lender and borrower agree to permanently alter the terms of the loan agreement.

When seeking either a forbearance or a restructuring, a borrower must exercise diligence. That means that if you are interested in working something out with your lender, you must prove it by your actions.  When a lender requests information from you, you should respond promptly, accurately and completely to give yourself your best chance at working out a forbearance or restructuring. 

The attorneys at Ritter & Randolph, LLC have extensive experience in working with borrowers and lenders in foreclosure and getting borrowers back on track with their loan agreements.