What to do if you receive a summons while working with the lender on a forebearance

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What to do if you receive a summons while waiting for an answer to wheather or not the lender will work with you on a forbearance. First of all make sure you make a note of when you were served. Don’t wait on a reinstatement quote more than a day, check with them again and keep bugging them till you get it and each time make a note in your files as to the time and date, this will help if you had to go to court. In many cases the attorney gives you the impression that they have the figure when in fact they get it from the lender. I would call the lender and start bugging them and making notes. Now is a very good time to work with the lenders because of the bailout money. They are a little more obligated and they get compensated when they help you, but they may be very busy so keep bugging them if you have to (politely of course). Make sure they know you are ready and willing. They will want to know how much money you have now (so if you can hedge your bet just a little so they won’t take everything you have) and your income verses expenses. Just to make sure you can afford the modification. Your payment should not be more than 31% of your gross income combined on the modification. If your loan is a variable rate loan then this is the time to make it a fixed loan. If so then they will probably give you a temporary plan for up to three months till they come up with a permanent plan. Once you start talking to the lender make sure you keep good notes as to who you talked to and what about. More than likely the lender will stop the foreclosure process but make sure. You should also just as a precaution in the most legal looking way you can answer the summons back to the attorney just so you can say you did within the 30 day time frame (most people wait till it is too late). Make sure you say in the answer that you are working with the lender and it is your understanding that everything is being held in limbo till you get your final answer from the lender. Having done this you will more than likely have no reason to go to court. Main thing is keep cool and don’t lose your head. If you have enough to pay the reinstatement, you really don’t have much of a problem. If not negotiate, negotiate, negotiate. Do not be bullied into accepting something you cannot afford, tell them they are asking too much and negotiate for something lower.Good luck, by the way for those of you that looked at some of my click throughs I thank you.  Thanks J.D.

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