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
www.fha.gov/foreclosure/index.cfm.
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.
