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Avoiding Foreclosure
On this page:
Steps to
take when you can’t make your mortgage payments
Frequently Asked
Foreclosure Questions Mortgage Lender's Contact info Layoffs and threatened unemployment cause many homeowners to worry about making their foreclosure loan payments. Since their home is usually a family's most important possession, basic advice for anyone with a home mortgage has been prepared by HUD/FHA for HUD foreclosure help, in a joint effort with the Department of Veterans Affairs (VA), the Department of Labor and the mortgage industry. Facing Money Troubles? Many factors can make it hard for you to pay your bills. These factors could include:
If your family has money troubles, now is the time to look closely at what you owe and what you earn, eliminating unnecessary spending and reaching out for foreclosure help if you still can't meet your financial obligations. Taking action now can help you protect your family from the loss of your home. This page was created to help you find foreclousre free advice, information, avoid foreclosure loan options and web links that will help you protect your home for the years ahead. Steps to take when you can’t make your mortgage payments Explore Loan Workout Solutions Beware of Predatory Lending Schemes Information For Families With FHA Loans: http://www.hud.gov/offices/hsg/sfh/owning.cfm This information is brought to you through the collaborative efforts of HUD/FHA HUD foreclosure for free, Department of Veterans Affairs, Department of Labor, Fannie Mae, Freddie Mac, members of the mortgage industry-at-large, and other industry participants. Contact Your Lender As Soon As You Have A Problem Many people often avoid calling their lenders when they have money troubles. Most of us are embarrassed to discuss money problems with others or believe that if lenders know we are in trouble they will rush to collection or foreclosure. It is important to know that most lenders want to help borrowers keep their homes. Foreclosure is expensive for lenders, mortgage insurers and investors. HUD/FHA, as well as private mortgage insurance companies and investors like Freddie Mac and Fannie Mae, require lenders to work aggressively with borrowers who are facing money problems. Lenders have workout options to help you keep your home. However, these options work best when your foreclosure loan is only due for one or two payments behind. The longer you are behind the fewer options are available. You should contact your mortgage lender to discuss your circumstances as soon as you realize that you are unable to make your payments. While there is no guarantee that any particular relief will be given, most lenders are willing to explore every possible option. Do not assume that your problems will quickly correct themselves. Don't lose valuable time by being overly optimistic. Finding your lender
Information To Have Ready When You Call:
Expect to have more than one phone conversation with your lender. Typically, your lender will mail you a "loan workout" package. This package contains information, forms and instructions. If you want to be considered for a program, you must complete the forms and return them to your lender quickly. The completed package will be reviewed before the lender talks about a solution with you. Call Today! The sooner you call; the sooner help is available. Do not ignore mail from your lender If you do not contact your lender, your lender will try to contact you by mail and phone soon after you stop making payments. It is very important that you respond to the mail and the phone calls offering help. If your lender does not hear from you they will be required to start legal action that will substantially increase the cost of bringing your foreclosure loan current. For the unemployed, getting by will require a new, tightened budget. Prioritize your bills and pay those most necessary for your family: food, utilities and shelter. Failing to pay any of your debts can seriously affect your credit rating. However, if you stop making your mortgage payments you could lose your house. Whenever possible, any income available after paying for food and utilities should be used to pay your monthly mortgage payments. If your employment income has been stopped or reduced, first consider eliminating or reducing your other expenses (such as dining out, entertainment, cable, second automobile, or even telephone services). Take any responsible action that will save cash. If that does not provide sufficient income, consider using other available financial resources including:
In addition to speaking with your lender, you may want to contact a non-profit consumer credit counseling agency that specializes in providing help in restructuring credit payments. Credit counselors can often reduce your monthly bills by negotiating reduced payments or long-term payment plans with your creditors. The majority of counseling agencies are reputable and provide their services free of charge or for a small monthly administrative fee tied to a repayment plan. Beware of counseling agencies that offer counseling for a large upfront fee or donation. For consumer debt advice contact the National Foundation for Credit Counseling: http://www.debtadvice.org To find a HUD-approved housing counseling agency: www.hud.gov/offices/hsg/sfh/hcc/hcc_home.cfm When you call a consumer credit counseling agency, you will be asked to provide current information on your income and expenses. Make sure you ask what the agency will charge before you sign any documents! The Importance of good credit Do not underestimate the importance of preserving your good credit. Maintaining good credit is important for job hunters. When you apply for a job, the employer probably will check your credit report to determine:
Your future ability to purchase certain items, rent or buy a home, and complete other transactions often requires a credit check. Consumer credit agencies and your lender can help you e |
