Avoid Foreclosure Some important guidelines developed from our own experiences and recommendations from the US Department of Housing and Urban Development to help homeowners prevent foreclosure.
1.
DO NOT IGNORE THE LETTERS & PHONE CALLS FROM YOUR LENDER As painful and time consuming as it may be, answer their phone calls and respond to their letters.
Most lenders, especially in this economy, have programs in place and are willing to work with you if you communicate with them.
Be calm, be patient and open to discussing your situation.
2.
BE PREPARED Collect your financial information and share it with your lender.
They will want to know:

• Why you are having trouble making your payments
• When you will be able to bring your mortgage current
• Do you plant to keep your home or are you trying to sell it
• Is your shortfall situation short or long term
• What is your current income
• Details of your monthly expenses - utilities, insurance, entertainment, credit card payments, car payments, education...
  
• Do you have any other sources of income? Can family or friends help you through this tight situation?

Without this information they are much less likely to be able to help you.
3.
ASK QUESTIONS The Federal Government and private lenders have programs in place to help homeowners in jeopardy keep their homes.
You may qualify for one of these programs.
Ask your lender and HUD approved counselor.
Should you not qualify for any of today's programs keep asking.
New programs are constantly being developed.
4.
STAY IN YOUR HOME FOR NOW Do not abandon your home! If you move out foreclosure proceedings will move more swiftly.
5.
DO NOT LIST YOUR HOME FOR SALE If you reasonably expect to be able to afford your home DO NOT put it up for sale.
A home for sale is very UNLIKELY to qualify for any special programs, receive forbearance assistance, loan modification or refinancing.
6.
CONTACT A HUD-APPROVED HOUSING COUNSELING AGENCY You will find these agencies provide excellent information on services and programs offered by both government agencies and private organizations that could help you.
The housing counseling agency may also offer credit counseling.
These services are usually free of charge.
Here's the link to get you started: www.
hud.
gov/offices/hsg/sfh/hcc/hcs.
cfm 7.
DON'T PAY SOMEONE TO WORK WITH YOUR LENDER Hiring a middleman is one sure way to spend money you don't have.
Use the free counseling agencies available.
They provide great insight and will help you determine your best course of action.
They will help you interact with your lender and get the best option available to you.
Skilled, knowledgeable and FREE!