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Helpful
Information
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.
source:
http://www.hud.gov/foreclosure/index.cfm
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