4 Questions to Ask Your Mortgage Company If You’re Facing Foreclosure

4 Questions to Ask Your Mortgage Company If You're Facing Foreclosure -- LEE LEGAL -- DC VA MD

If you’re facing foreclosure, stay in contact with your mortgage company. Do not ignore them when they call, and do not ignore their correspondence. Instead, reach out to your lender to determine your options. You will have questions for your mortgage company if you’re facing foreclosure.

4 Questions to Ask Your Mortgage Company If You're Facing Foreclosure -- LEE LEGAL -- DC VA MD

4 Questions to Ask Your Mortgage Company If You’re Facing Foreclosure

1.  What is my payoff quote?

If it’s been a while since you made a mortgage payment, you may not be sure how much you owe to pay off the mortgage. This number is called the “payoff,” and it’s an important number to determine your options for the property. If you have equity in the property, you have more options available to you than if your property is under water. Only a payoff quote will tell you for sure whether your property has salvageable equity.

2.  What is my reinstatement quote?

If you want to avoid a foreclosure auction, you can reinstate your mortgage. That means curing the amount of the arrearage, in full, prior to a scheduled foreclosure sale date. Mortgage reinstatement is your first and best loss mitigation option when facing foreclosure. Once a foreclosure auction has been scheduled, only bankruptcy will stop the sale.

3.  What is your foreclosure timeline for my mortgage?

Mortgage timelines differ by jurisdiction. Often mortgage company representatives will not have this information. But some companies will disclose your prospective foreclosure timeline if you request it. Of course, your lender will want you to pay immediately if you are in default. And many companies will simply refer you to their attorneys if the foreclosure process has already commenced.

4.  What loss mitigation options are available to me?

You may be able to modify your mortgage, obtain approval of a short sale, or otherwise more efficiently surrender the property to your lender. Loss mitigation is the process that mortgage lenders use to work with home buyers who are behind on their mortgages. The earlier you request assistance with loss mitigation options, the better your chances are of obtaining one.

About Brian V. Lee 471 Articles
Brian V. Lee provides bankruptcy, foreclosure defense, business turnaround, and litigation services to clients in the District of Columbia, Virginia, and Maryland. Brian was the Washington, D.C. state chair of the National Association of Consumer Bankruptcy Attorneys from 2016 to 2018.