My home was up for foreclosure this summer. A letter from an attorney faxed a day prior to the sale helped the lender consider a loan modification that they had not “considered” previously. Dealing with a lender is not easy and please take it from a 20 year real estate veteran, get a third party to help!
You can talk with the lender yourself and think that everything is going along well, and then whammo, you get a certified letter from an attorney that you are in default. Tennessee is a non-judicial foreclosure state. You miss three months of payments and you are in default. The lender has the right to hire a law firm and foreclosure on your property. Even if you are able to catch up on payments, the lender can choose not to accept your check. In my case, after wiring the lender money the week prior to my foreclosure, they decided to wire the money back into my account and NOT call to tell me. So, when I get back on the phone with my loan servicing rep, they tell me that the loan mod that I was approved for only one week prior, was now not qualified. They had never sent anything in writing. The rep only told me over the phone that everything looked good, not to worry. Big mistake….all my years of real estate training teaches rule 1. Always get everything in writing! The writing that captures the lender’s ears has letterhead with attorney’s names at top.
The other sure fire method of stopping a foreclosure in a non-judicial state is bankruptcy. I met with a bankruptcy attorney who gave me the process and fees (they are not cheap!) in order to postpone the foreclosure sale. Bankruptcy is a costly and temporary answer at best. If you have the means to begin paying your lender again, then fight for the loan modification. If you do not have the means that fight to be able to sell your house. Sell your property if you have equity out right or short sell. Short sales are paying the lender less than what you owe and getting a paid in full satisfaction release from your loan obligation.
We have investors that will put an offer on many types of properties if you wish to sell. If you have the means to stay in the property and need to get your lender to work with you, then 1. Hire an attorney , and 2. Hire a third party loan modification expert. Good people are worth their weight in gold if you want to keep your home!




