It depends. Sometimes, the mortgage company is willing to work with a homeowner going into foreclosure. The costs of a foreclosure to the mortgage company are high–whether it is a judicial foreclosure (needing a court to order the foreclosure to happen) or a non-judicial foreclosure (no court is involved), the costs of publicizing the sale, appointing a trustee, having the sheriff evict the residents–all those costs eat into the profits. The mortgage company may have a surplus of inventory to deal with (lots of houses already foreclosed upon).

Sometimes the homeowner/borrower can speak directly with the mortgage company and sometimes it is impossible to get anyone at the mortgage company to talk to the borrower. If the mortgage company has already retained a foreclosing attorney, it becomes more difficult to get the foreclosure stopped. So, what is a person to do?

One piece of advice is not to wait until the last minute to seek assistance. The more desperate the homeowner becomes, the more wolves come out to prey on the desperation of the homeowner. A recent article on CNN Money highlighted the issue facing homeowners in foreclosure and the predatory lenders who prey on those homeowners. Foreclosure rescue scams abound these days as subprime mortgages, usually when the adjustable rate changes, go into foreclosure.

Folks have come in to my office having paid lots of money to someone who has promised to mediate a work-out agreement on their behalf with the mortgage company. Find an experienced attorney to assist you to mediate with mortgage company. The Mortgage Law Network may have an experienced attorney in your area. If not, the National Association of Consumer Advocates is sure to have a member attorney in your area .

Popularity: 51% [?]