OPEN FORUM:
The Bank Doesn’t Want Your Home
By DAVID COOK
Published February 11, 2009
If I have learned anything during these trying times, it is the fact that the banks and lending institutions are not wanting any more property to dispose of. They already have more than they can handle. Most, if not all of them, have set up entire divisions just to work with troubled accounts that are in danger of foreclosure, bankruptcy or, even worse, “walking away” from their homes.
I am constantly amazed at how willing these loan companies are to work with their clients. They accept reduced or partial payments. They adjust loans to fit the current values. They find other ways to help the client and to keep the house occupied and not vandalized.
The biggest secret for the homeowners who cannot seem to make their payments is to be pro-active. That means that you need to be in constant contact with your loan company. That should stop those annoying collection calls. If you call them on a weekly basis, they will not be calling you. What a relief!
If you can, each call should include an offer to send whatever you can afford. Of course, your hope is that, very soon, things will turn around and you will be able to catch up and eventually pay off the loan.
Think about it: If the bank forecloses on your account, they are required to spend months on various filings and paperwork which costs them money while you live “free” in the home. Then, after foreclosing, they stand the risk of large repair costs to prepare the home for listing. Next, they list it in this “flooded” market and have to take a giant loss compared to the note that they had with you. You would not believe some of the prices asked on bank owned properties in this market. Many of them are less than half what the value was just a couple of years ago!
If you are behind in your house payments, I encourage you to be pro-active and talk to your loan company. Your Realtor should be happy to discuss it with you, too. We are not here just to sell you a home. We also want to be someone that you can turn to for real estate advice. More than once, I have had people come to me to try to sell their house and I have, instead, tried to show them how to save it. I am sure that your Realtor will be happy to do the same.
David Cook is a real estate broker and owner of Keller Williams Realty in downtown Overton.
