Save Your Home & Avoid Foreclosure!

avoid_foreclosureAre you having trouble keeping up with your mortgage payments?

Has your financial situation changed due to a mortgage payment increase, loss of job, divorce, medical expenses, increase in taxes, unmanageble credit card debt, or some other reason?

If so, time is of the essence. Few people think that they will lose their home and most are surprised to learn that they didn’t have more time to save it. It is crucial that you take action now!

Here are some helpful tips:

  1. Don’t ignore the problem.
  2. Contact your lender as soon as you realize that you have a problem.
  3. Open and respond to all mail from your lender.
  4. Know your mortgage rights.
  5. Understand foreclosure prevention options.
  6. Contact a HUD-approved housing counselor.
  7. Prioritize your spending.
  8. Use your assets.
  9. Avoid foreclosure prevention companies.
  10. Don’t lose your house to a foreclosure rescue scam.

Easy to say, but hard to do? It may be simpler than you think! A free FORECLOSURE AVOIDANCE COMPREHENSIVE TRAINING (FACT) STARTER KIT (PDF) is available to assist you. It is important to stay connected with your lender and get assistance as early as possible. The FACT Starter Kit will walk you through that process and will also answer key questions concerning the foreclosure timeline, possible alternative options (including mortgage modification), and more. In addition, the FACT Starter Kit provides a sample Hardship Letter and describes the other items included in a Hardship Package (paystubs, tax returns, etc.).

HAFA MAY ALSO BE ABLE TO HELP! The HOME AFFORDABLE HOUSING ALTERNATIVES PROGRAM (HAFA) is primarily designed for homeowners with documented hardship who are unable to stay in their home even with a loan modification. Under HAFA, homeowners may be able to avoid foreclosure by selling the home as a Short Sale (where the value of the home is less than the remaining amount of the first mortgage) or by transferring title to the current owner of the mortgage through a Deed-in-Lieu of Foreclosure process. The program uses a standard process, uniform documents, and deadlines to streamline the processes. Fannie Mae and Freddie Mac (the housing government sponsored entities – GSEs) have issued similar guidelines for their own versions of the program. (Note: The FHA, VA, and Department of Agriculture Rural Development Programs have their own short sale procedures and do not participate in HAFA.) If you are interested in this program, please call the toll-free 1-888-995-HOPE line to obtain free advice and assistance from a HUD-approved housing counselor.