Are you having trouble keeping up with your mortgage payments?
Have you received a notice from your lender asking you to contact
them?
If you are unable to make your mortgage payment:
1. Don't ignore the problem.
The further behind you become, the harder it will be to reinstate
your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you
have a problem.
Lenders do not want your house. They have options to help
borrowers through difficult financial times.
3. Open and respond to all mail from your
lender.
The first notices you receive will offer good information about
foreclosure prevention options that can help you weather financial
problems. Later mail may include important notice of pending
legal action. Your failure to open the mail will not be an
excuse in foreclosure court.
4. Know your mortgage rights.
Find your loan documents and read them so you know what your
lender may do if you can't make your payments. Learn about
the foreclosure laws and timeframes in your state (as every state
is different) by contacting the State Government Housing Office.
5. Understand foreclosure prevention
options.
Valuable information about foreclosure prevention (also called
loss mitigation) options can be found on the internet at
portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL
.
6. Contact a HUD-approved housing
counselor.
The U.S. Department of Housing and Urban Development (HUD) funds
free or very low cost housing counseling nationwide. Housing
counselors can help you understand the law and your options,
organize your finances and represent you in negotiations with your
lender if you need this assistance. Find a
HUD-approved housing counselor near you or call (800) 569-4287
or TTY (800) 877-8339.
7. Prioritize your spending.
After healthcare, keeping your house should be your first
priority. Review your finances and see where you can cut
spending in order to make your mortgage payment. Look for
optional expenses-cable TV, memberships, entertainment-that you can
eliminate. Delay payments on credit cards and other "unsecured"
debt until you have paid your mortgage.
8. Use your assets.
Do you have assets-a second car, jewelry, a whole life insurance
policy-that you can sell for cash to help reinstate your loan? Can
anyone in your household get an extra job to bring in additional
income? Even if these efforts don't significantly increase
your available cash or your income, they demonstrate to your lender
that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies.
You don't need to pay fees for foreclosure prevention help-use
that money to pay the mortgage instead. Many for-profit companies
will contact you promising to negotiate with your lender.
While these may be legitimate businesses, they will charge
you a hefty fee (often two or three month's mortgage payment) for
information and services your lender or a HUD approved
housing counselor will provide free if you contact them.
10. Don't lose your house to foreclosure recovery
scams!
If any firm claims they can stop your foreclosure immediately if
you sign a document appointing them to act on your behalf, you may
well be signing over the title to your property and becoming a
renter in your own home! Never sign a legal document without
reading and understanding all the terms and getting professional
advice from an attorney, a trusted real estate professional, or a
HUD
approved housing counselor.