Tuesday, February 17, 2009

A Mortgage Bank with common sense?!

I had a chance to see some friends (and former clients) recently, and they told me a story about a proactive mortgage company who uses common sense.  "Can't be - there's no such thing," was my reply.  They assured me this story is true.

My friends bought their home a couple years ago, using an Adjustable Rate Mortgage to finance it (against my advice, I might add.)  Now their mortgage was due to adjust upward, and they were nearing a state of panic.  The home was worth less than they had paid; it was also worth less than they owed on it.  On top of that, the economy has taken a toll on their family-run business, forcing them to tighten their belt just to make the existing payment.  They were trying to rationalize that it might be alright to lose the home, since they were upside-down.  But in their hearts they didn't want to - they love this home and expect it to be the last home they ever live in.

Then one evening they received a phone call from their existing lender, offering to not adjust the mortgage and to extend the current interest rate for the next 5 years!

No phone calls to the loss mitigation department.  No qualifying for financial hardship.  No personal guaranty required.  Simply a way for both parties to win.  My friends will now get to stay in the home they love, while the bank gets to avoid losing lots of money by foreclosing.

Proactive.  Common sense.  Win-win.  Kudos to Saxon Mortgage Services, Inc.

Your hoping to hear more stories like this Realtor,

Chris Butterworth