Property Investing in The 21st Century

Property investors are no different than other homeowners when it comes to a temporary inability to pay the mortgage. There are ways that you can avoid foreclosure whether this is your own residence or your investment property.

Use these tips to help you avoid foreclosure on investment property.

Call the Mortgage Company

The first step is always to call your mortgage company and let them know of your difficulty in making the monthly payment. Talk to the customer service department and ensure they record your call.

Don’t wait to make this call. The longer the problem goes on, the harder it will be to gain your mortgage holder’s cooperation in fixing it.

Next, make another call to the Loss Mitigation department. This representative may be reluctant to come up with a solution which presents the least cost to you, but they are required to do everything possible in the best interests of the bank. They are just as motivated to avoid foreclosure as you are. Some options are a short sale of the property or a renegotiation of the loan terms.

Only You Can Protect Yourself

Always keep this in mind. The lender is only looking out for their company.

Keep a record of every phone call you make. Take down the name, direct phone line, and all details of every conversation with each representative of the mortgage company.

When you have come to an agreement with the bank regarding resolution, be sure to ask for a Letter of Release. This will protect you from being the target of possible future collection efforts on any unpaid balance.

Remember that you are not the only one possibly facing foreclosure. You can, however, be proactive and realize an outcome that is beneficial to all parties involved.

Written by Clint Maher - 21st Century Academy
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