Your Finances, Your Future - Facts About Foreclosure

Foreclosure can occur when you fall behind on your mortgage payments. Depending on the terms of your mortgage, that could be as soon as being three to four months late. If you are having trouble making your mortgage payments, contact your lender as soon as you realize making those monthly payments is a problem. 

TIPS:

• Don’t ignore your mortgage problem. It won’t get better. If you are falling behind in your mortgage payments, immediately contact your lender. The earlier you contact them, the more options may be available to help you keep your home;
• Work with a government approved housing counselor. They can help you understand the laws and your options, help you organize your finances and represent you in negotiations with your lender. Here are a couple of places to start learning more;
• Know your options. You may be able to work out a temporary plan for making up missed payments, or modify your loan terms. Sometimes the best option may be to sell your house and move into something more affordable.

TOOLS:

• Protect your home from foreclosure. Keeping your house should be one of your top priorities. Sticking to a strict budget will help you make sure money is available to pay your mortgage. But if you think you may have trouble meeting your monthly mortgage payment, contact your lender or seek financial counseling – and know your rights. Foreclosure laws vary from state to state. Find more detailed tips and information about foreclosure and how to avoid it;
• Get help with your mortgage. If you can’t make your mortgage, or have already fallen behind in your payments, act quickly. Contact your lender about a loan modification or seek help from financial HUD-approved housing counseling agencies;
• Federal loan modification program. You may be one of the 7 million to 9 million homeowners eligible for the new federal loan modification program. Find out if you qualify for the Making Home Affordable program.

TRAPS:

• Be very cautious of foreclosure “rescue” offers. Beware of some of the common scams that include offers to stop a foreclosure for a fee, or to pay your mortgage and then rent your house back to you. Learn more.
  
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