Avoiding Foreclosure
How to avoid foreclosure?
Have you received a notice from your lender asking you to contact them about your mortgage payments? Take the following steps:
. Review letters from your lender
. Contact your lender as soon as possible
. Find and contact a local a HUD-approved Housing Counseling Agency by calling (800) 569-4287
Need a loan for your home? Click Here
1. Contact your lender as soon as possible.
Lenders don't want your house. They have many options to help borrowers through difficult financial times. The mortgage lenders listed below have voluntarily joined the federal government to assist homeowners who are concerned about the future or have suffered due to recent changes in the economy. If your lender is listed here, you can help protect your home by contacting them immediately!
| Lender | Phone #1 | Phone #2 |
| Bank of America | (800) 846-2222 | (716) 635-2264 |
| Chase Home Finance | (800) 848-9136 | |
| Chase Home Finance | (800) 526-0072 ext. 533 | (800) 527-3040 |
| CitiMortgage | (800) 926-9783 | |
| Countrywide | (800) 219-7773 | (800) 669-4576 |
| HSBC Mortgage Corporation | (800) 338-6441 | (888) 648-3124 |
| Irwin Mortgage Corporation | (888) 444-6446 | |
| James B. Nutter & Company | (800) 315-7334 | |
| Midland Mortgage | (800) 552-3000 | (800) 654-4566 |
| Mortgage Service | (800) 449-8767 | |
| National City Mortgage | (800) 367-9305 | |
| Principal Residential Mortgage, Inc. | (800) 367-6448 | (800) 962-4450 |
| Wells Fargo Mortgage | (800) 766-0987 | |
| Wendover Financial Services Corporation | (888) 934-1081 | (800) 436-1022 |
| Washington Mutual Home Loans, Inc. | (866) 926-8937 | (800) 254-3677 |
2. Do not 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.
3. 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. Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at FHA - Federal Housing Administration
5. 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.
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. 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.
8. 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.
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!
Equity skimming: In this type of scam a "buyer" approaches you offering to repay the mortgage or sell the property if you sign over the deed and move out - usually leaving you with the debt and no house. Signing over your deed does not necessarily relieve you of the responsibility of paying the loan. 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.
Finding foreclosure listings by state
