What is involved in rehabilitating a non-performing loan?

Several things must occur, the most important being getting in contact with the homeowner. Many times, when borrowers get behind on their payments, they are embarrassed and avoid calls from their lenders. Some borrowers avoid the calls because they know that they cannot pay, and hope to delay losing their home. Contacting and then gaining the trust of the homeowner are top priorities.

Once contact with the borrower is made, a decision must be made about the possibilities that a loan modification can be completed. If so, the loan is modified and the borrower begins to make payments again (re-performing). If not, then the borrower and lender need to agree on a deed-in-lieu of foreclosure, or the lender needs to begin the foreclosure process.