What is the goal of a foreclosure "workout"?
What is the goal of a "workout"?
Ideally, you and your lender can reach an agreement that resolves your default by a method other than foreclosure.
If you cannot arrange to bring the note current, there is probably no point in attempting a workout. The point of a workout is to give you a limited period of time to find some means of catching up on missed payments.
If you are permanently out of work, the lender considers the default "noncurable" and will go ahead and accelerate the note and demand full repayment.
Does the lender have to accept your workout plan?
Even if you develop a plan that you feel will cure your default, the lender is under no obligation to accept it.
In this case, you can exercise the "Right of Reinstatement" which is discussed later in this chapter.
Some companies specialize in helping foreclosed homeowners with workout solutions. Contact HomeAssure.com
for a free consultation.
P.S. On nearly every page I remind my readers to monitor their credit score. I do that because one of the most serious consequences of foreclosure is damaged credit. The first step to protect your credit is to review your credit report (you can get a free credit report here).
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