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Foreclosure FAQsFrequently Asked QuestionsOn
this page: I do not remember what type of mortgage loan I have, how can I find this information? Do I need to keep living in my house to qualify for assistance? What type of information should I have ready to discuss with a lender? My employer has already announced layoffs within the coming months, what can I do now? What happens when I miss my mortgage payments? What should I do if I miss mortgage payments? How do I know if I qualify for any of these alternatives? Should I be aware of anything else?
What are the main points I
should remember?
Additional foreclosure links on this site: How do I know who my lender is and how to contact them? Look at your monthly mortgage coupons or billing statements for the name of your lender and contact information. I do not remember what type of mortgage loan I have, how can I find this information? Look on the original mortgage documents or call your mortgage lender. Do I need to keep living in my house to qualify for assistance? Typically, yes, but call your lender to discuss your specific circumstances and get advice on options that may be available. What type of information should I have ready to discuss with a lender? Typical information requested by lenders in a workout package include:
My employer has already announced layoffs within the coming months, what can I do now? Through this website you have taken the first step toward educating yourself about available options. Determine if the layoffs will cause a financial hardship that will make it hard for your family to make your mortgage payments. If so, consider other resources that you have available to pay your mortgage. Review your spending habits and see where you can reduce spending. If you have a lot of consumer debt, consider contacting a non-profit, consumer credit counseling agency. Take advantage of any employer offered resources. If you still believe that you will have trouble making your mortgage payments, contact your lender right away. Some workout options do include expenses that the borrower is expected to pay, for example, recording fees for a loan modification. Because, every situation is different you should contact your lender for more information. However, if a lender has no contact with a borrower and has to start foreclosure, the legal fees that the borrower will be expected to pay can be very expensive. To avoid unnecessary legal fees, call your lender as soon as you realize you are in trouble. Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, your lender or HUD could seek a deficiency judgment. If that happens, you not only lose your home, you also would owe your lender or HUD an additional debt. Foreclosure or a deficiency judgment could seriously affect your ability to qualify for credit in the future. So you should avoid it if all possible! Do not ignore the letters from your lender. If you are having problems making your payments, contact your lender immediately. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help. Stay in your home for now. You may not qualify for assistance if you abandon your property. Contact a HUD-approved housing counseling agency. They have information on services and programs that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge. If you bought your home with a Veterans Administration (VA) guaranteed loan, call the VA office nearest you. Your options include the following: Mortgage modification: You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem but your net income is less than it was before the default (failure to pay). Partial claim: Your lender may be able to work with you to obtain an interest-free loan from HUD to bring your mortgage current.
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