Are you having trouble keeping up with your mortgage
payments? Have you received a notice from your lender asking you to contact
them?
Don't ignore the letters from your lender
Contact your lender immediately
Contact a HUD-approved Housing Counseling Agency
Toll FREE (800) 569-4287
TTY (800) 877-8339
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.