One of the main questions we should ask is "Why do mortgage brokers have a hard time turning down clients who they have promised to help out of foreclosure?" There may be a number of reasons for this. The broker may be afraid of losing your trust or creating an enemy; no one wants to tell a customer that they are in danger of losing their home due to foreclosure. Also, most brokers know that their foreclosure clients put all their eggs in one basket and know that if they can not help, the foreclosure victim will have lost valuable time. Because of this, turning down a client who is in foreclosure becomes very tough for these brokers, many of whom have gained your trust.
These brokers use a number of tactics to string along their clients so that they do not have to turn them down. One of the main ones is to keep telling the clients that he is waiting on a particular piece of information. It may be from your lender, an underwriter, an attorney, or one of his managers or another broker. While some things do tend to move slowly in the mortgage industry, you should assume something is wrong if you can not get a straight answer from your mortgage broker.
Another tactic that brokers use is to not answer your calls or respond to your voicemails or emails. They may say they are out of the office or have been busy. Obviously, if a mortgage broker does not have enough time to work on your foreclosure loan, then you should seriously consider using another broker. In addition, you should wonder why your broker does not have the time to work on your file; it may very well be that you are not approved, and that since the broker will not make any money on the loan, he does not have the time work on your case any longer.
Here are some general guidelines on how to pick a mortgage broker who has helped clients in foreclosure refinance their homes.
-Give your broker a set period of time to approve you, and then move on if nothing is resolved. Don't just let your broker work on your loan forever; you know how much time you have before foreclosure, so don't let the broker keep working on the file. You should be able to get a pre-approval from a foreclosure lender within 3-5 business days after submitting a complete loan application.
-Don't rely just on a mortgage broker to help you out of foreclosure. If you're in danger of foreclosure, you need to examine every option possible to stop the foreclosure and save your home. You can't rely on any single option to help you. Call several brokers and shop around for the company that you think fits your situation and will best serve your needs.
-If you can no longer get in touch with your broker, then assume things have taken a turn for the worse. Most companies that can not help you will not take the time to tell you that they have turned your file down. Instead, they will stop taking your calls, send you to voicemail, and ignore your emails. If you do finally get through to someone, the news is usually not very good. So, if the lines of communication fail with your broker, then assume they have been unable to approve your foreclosure loan. Allow the possibility of being approved if they call you back, but you always have cause for concern if you can not get in touch with anyone.
-Do research on the brokers you choose; look up their parent company, check where they are licensed to do business, and ask for references.
We know that working with a broker can be difficult, but the rewards of getting a refinance out of foreclosure can be very great. A brand new loan to stop foreclosure that gives you a fresh start to rebuild credit can be the perfect solution for your situation. We only recommend a few lenders as a trusted source of loans to stop foreclosure, but you should do research on your own and pick a broker to work with very carefully.
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