Your lender really does not want your house – think I am kidding? Might not seem like it? Well it is true. Lenders will do almost anything to prevent foreclosure – if you talk to the right people soon enough.

As soon as you get behind or think you might fall behind – be proactive and call your lender. Let them the know the circumstances of what is happening.

No doubt it may be frustrating as the customer service reps are told to get you to pay no matter and until you are actually late, they may not allow you to speak with anyone who can help.  What you really want is someone in collections or the loss mitigation department. Be persisitent and call back several times if you have to. Lenders are much more willing to work with the borrowers that want to save their homes. They will look favorably on agreeing to a loan modification because they really do not want ownership of your home. They are in the lending business not the real estate investment business.

Most loans are originated to homeowners by the bank or mortgage company and then sold on the secondary market. When you get a notice that your loan has been transferred it means that the servicing of the loan has been assigned to another company for collection of payments. These servicers are accountable to the investors who have purchased these securities on Wall Street. They have to pay interest and dividends to the investors.

If a house in foreclosure, not only does the lender have to make good on the investors expectations on the portfolio, they have to maintain the property, insure it,  pay the county and state taxes and pay the cost of marketing the property until it sells.

Unfortunately a lot of cases in Denver have a negative equity position. The homeowners owe more than the value of the property and what it can be sold for – so the lender is losing even more money. The lenders have perpetuated the problem by designing programs to increase homeownership which is great,  but they have made the loan programs so aggressive that in the long run the homeowners are paying the price - literally. Remember if you start early enough, y