* 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 a mortgage payment:
1. Don’t ignore the problem
The further behind you become, the harder it will be to reinstate the loan and the more likely you will lose your house.
2. Contact your lender as soon as you realize you will have a problem with payment.
Lenders don’t want your house. They have options for help borrowers during difficult financial times.
3. Open and respond to all mail from your lender.
The first notices will offer good information about foreclosure prevention options that can help you. Later mail will include important notice of pending legal action. A failure to open mail cannot be used in court.
4. Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you cannot make the payments. Learn about foreclosure laws and timeframes in your particular state, as each state is different by contacting the State Government Housing Office.
5. Understand foreclosure prevention options.
Valuable information about foreclosure prevention option can be found on this site or on the internet.
6. Contact a HUD-approved housing conselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. They can help you understand the law and your options, organize your finances and represent you in negotiations with your lender.
7. Prioritize your spending.
After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut back on spending to make your mortgage payment. Look for optional expenses, like Cable TV, memberships and entertainment.
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. These efforts could demonstrate to your lender that you are willing to make sacrifices to keep your home.