 Uncertain economic times can bring unexpected financial issues for many—ranging from higher household expenses to missed mortgage payments and, in some instances, job layoff. Contact your lenders and household utility and service providers to discuss your situation. There are many free resources available.
Here are a few Web sites with resources that can help you:
- Homeownership Preservation Foundation– (www.995hope.org, 888-995-HOPE)– providing free 24-hour housing counseling
- NeighborWorks America– (www.nw.org/network/foreclosure)-- a network of 240 organizations, providing resources to help families facing foreclosure
Additional Resources:
- Department of Housing and Urban Development– (www.hud.gov/foreclosure)-- lists HUD-approved housing counselors
- Federal Reserve– (www.federalreserve.gov/pubs/foreclosure)-- has a list of foreclosure resources from government agencies
- ACORN Housing– (www.acornhousing.org )– providing free housing counseling
- www.GuidetoLenders.com – providing information on lenders, rates, types of loans available, and loan calculators
- www.homebuying.about.com – numerous articles on buying & selling your home
- www.YourHome.Ca.Gov - helpful information and links if you are considering buying a home, or if you already own a home, or have a mortgage and may be experiencing difficulty in keeping your payments current
- www.MyMoney.gov - website dedicated to teaching all Americans the basics about financial education
- www.Ftc.gov/Credit - This site has information for you, whether you’re shopping for a mortgage or auto loan, checking the accuracy of your credit report, dealing with debt collectors, or looking for ways to protect your personal financial information
10 More Tips to Avoid Foreclosure...We all know what a financial strain it has become during the recent months. Difficult economic times do not mean that you will be forced to lose your home. If you are having troubling paying your mortgage please consider the following steps:
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.hud.gov.
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. To find an approved HUD counselor, visit the HUD website 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 such as 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 asset? Perhaps a second car, jewelry, a 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. That money can be used 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.
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