The Times ran an interesting piece yesterday reminding those facing a mortgage payment crunch to be proactive with their lenders. The logic makes sense: Your bank does not want to foreclose on you; it’s not in the real estate speculation business and the process of disposing of a repossessed property costs it $40,000 or so. As a result, if you can come up with a proposal that will cost your bank less than $40,000, a compromise is likely. The article recomends starting the conversation three to four months before a rate reset. Have any Brownstoner readers been through a negotiation like this or know anyone who has?
Homeowners, Call Your Bankers Before They Call You [NY Times]
Photo by Mark Lennox