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Important information and resources to help homeowners avoid foreclosure

Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?

If you find yourself unable to make your mortgage payment, take 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. If you find you need additional assistance, contact HOPE NOW, 1-888-995-4673 or www.hopenow.com. 

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 foreclosure laws and timeframes.  

5. 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 ʺunsecuredʺ debt until you have paid your mortgage.  

6. Understand foreclosure prevention options. If you are unable to make your mortgage payment, or are already behind in your payments, you may qualify for one of the many loan workout options.  Before you give up on the situation, read the following links to empower yourself with the information on the types of loan workout solutions offered today.  Then contact your lender to find out if you qualify for any of the options.  Options of loan workout solutions or http://portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL.

7. Contact a non‐profit housing counselor. The U.S. Department of Housing and Urban Development 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. For a list of Housing Counselors near you, http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm 

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. Many for-profit companies will contact you promising to negotiate a loan work out 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 for free if you contact them. You don't need to pay fees for foreclosure prevention help--use that money to pay the mortgage instead.  

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 HUD approved housing counselor or trusted real estate professional.
 

For additional information and resources, read and/or search the following links:

Federal Housing Administration (FHA) and the U.S. Department of Housing and Urban Development (HUD) web site:
http://portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL

AVOID THE FOLLOWING PREDATORY LENDING SCHEMES: Beware of this list of Predatory Lending Schemes

Fannie Mae web site: http://www.fanniemae.com/aboutfm/borrower_resource.jhtml;jsessionid=J0LRUJJ1NOJMDJ2FQSHSFGI

Freddie Mac's web site: http://www.freddiemac.com/corporate/buyown/english/avoiding_foreclosure/

HOPE Hotline: 1-888-995-4673 or www.hopenow.com

Texas Department of Housing and Community Affairs: Foreclosure Prevention - Preserving the Dream of Homeownership http://www.tdhca.state.tx.us/homeownership/foreclosure/index.htm