The negotiation between the borrower and the lender would be difficult, especially if the borrower is not prepared. Ideally, the borrower has researched the market trend and can answer any questions that arise. To make a great impression and get a positive response to the negotiation, the borrower should first talk to family and friends who have recently applied for loans, as the information they provide will give the borrower some hope. The borrower would also be aware of any potential problems that arise during the application process. In this way, when the borrower is facing the brick wall of the lender, the unexpected situations can be easily addressed.
Once all the information has been submitted, the borrower can call the loan company and express his financial difficulties. The borrower can tell the loan company that he can no longer pay the monthly amount. If the borrower is negotiating a mortgage loan, he may ask if the lending company will accept a deed-in-lieu of foreclosure. If he prefers to go to the loan company and inform them personally, it is better to bring a defense attorney so that they take your request seriously. Having a defense attorney with you throughout the entire process would give you the best possible results. They would also give you the best possible solutions to take.
After contacting the loan company, the borrower can research what other options they may qualify for. The borrower can contact the HUD Certified Counseling Agency for professional guidance with this financial dilemma.
If the lending company accepts the deed-in-lieu of foreclosure, the borrower can download the form and fill out the necessary information with a hardship letter and any financial documents the lending company wants.
Make sure the loan company doesn’t come after you once you’ve filed the deed-in-lieu of foreclosure. That the deed is enough to pay the outstanding amount that was missing.
Ask the loan company to have the deal reported to all 3 credit bureaus as a paid deal so it doesn’t show up on the borrower’s credit report and have a negative impact. If it is not reported as a foreclosure or deed-in-lieu, it will be on the borrower’s credit report for the next 7 years, resulting in a low credit score. Keep in mind that having a foreclosure or deed in lieu of foreclosure can lower a borrower’s credit score by an average of 160 points. So make sure you understand this before you sign the deed-in-lieu of foreclosure.
The borrower can sign the deed-in-lieu of the foreclosure once everything has been properly negotiated and leave them the key to the house and walk away, debt free.
Negotiating with the lending company will not be very easy if this guide is well followed and understood. Negotiations, especially with nearby defense attorneys to recommend and provide you with the best options, would be very easy, simple and hassle-free.