Beltran Properties

Our economy continues to be interesting. Stocks up, stocks down. Old news. What we the homeowners of America are dealing with is more important. Our lively hood, our homes, our families.

So now you, as many many others, are in a situation. Lost your income, or significantly less? What do you do  about your loans, home and credit cards? First and foremost, you must keep in contact with you lenders. Never break off communications, no matter how you feel. Always call. Give them the oppertunity to "explore options" by speaking with their "resolution experts", letting them know you no longer are able to even"meet your basic needs". (please note that the quotes are key words) These key words are intended to put you into a better negeotiating position, and put you through to someone  who  can aide you with your current situation. 

If you are sincere and truley wish to honor your commitment, and preserve your credit, call them and quickly. Work with them. If you have had a good credit history with them in the past, they will offer you programs to get you through your current situation. There are deferred payment programs, lower interest, lower payment for a period of time, with catch up payments coming into play shortly there after. Many programs, but not all, will be available from every lender. Example: a client called his credit card holders, who after a 30 yr. history ( and 10 banks) was narrowed down to 3 major banks. Bank #1 was called, offered deferred payments for 2 months, lower interest, no fees or penalities, with a catch up payment after several months. Great! Bank #2 insisted upon the minimum payment every month, but at a greatly reduced interest. OK, not that great. Bank #3 said he didn't have enough income to cover his debt (you think?) therefore they did not have any programs for him.

When you are asking for help on your home loan you will find almost the same approach. If you are in a "neg-am" loan (paying less than interest only each month) The lenders have been federally mandated to get you out of that loan by refinancing. These loans are HUD backed, and the lenders have to give you a loan for 97% of the appraised value.The interesting point is if you are "up side down" (owe more than you can sell it for) there are "silent seconds" (no interest for a period of time on that value over the appraisal) or forgiveness of the difference. You may find that the banks are leaning more towards the "silent second".

What you need to be prepared for is several different approaches to the same problem. If the "expert" you are dealing with is not giving you satisfactory answers, ask for the manager or supervisor. Be as much of a pest as they are when they are trying to collect! Turn the tables on them. You may find their hands are tied with the restrictions of accountability of how they restructure a loan. (why is it now they are worried?)

My full advise to you is to communicate, negotiate,  and follow through. This my well be they way to preserve your hard earned credit score in the future.