Survey Asks Why More Delinquent Borrowers Don't Call Lenders For Help

"Freddie Mac and Roper Public Affairs and Media, a division of GFK NOP – a leading international market research firm, today announced the results of the nation’s first ever survey to learn why more late-paying borrowers risk losing their homes rather than reaching out to their mortgage servicers. The borrowers never contact their lender in over half of all foreclosure cases. "

"Freddie Mac requires mortgage servicers to explore several workout options with late-paying borrowers. These options include forbearance, which temporarily delays or reduces payments, and loan modifications, which can restructure the payment terms for a fixed period. Many servicers typically describe these options in their collection letters. However, it is up to borrowers to follow-up with their servicers to learn more about these options."

Additionally, I would also suggest that homeowners consult with their mortgage broker and/or real estate agent if things are getting a little dicey on the payment front. Nearly 100% of foreclosures could be prevented by selling the home before the bank takes possession, which also results in a higher sales price and often cash back to the owner (as opposed to just turning the property over to the bank), rather than just forfeiting the downpayment or worse...