Entry bubble Avoid Mortgage Foreclosure: Doing Nothing is the Worst

By: Nicole | June 06, 2008 | Category: General

After spending the last few days at a consumer protection conference, I’ve returned feeling energized and determined. I am always humbled by the dedication of state and local consumer professionals. They work tirelessly against the scams and frauds that threaten consumers everyday.

HousesI was saddened though by one particular panel discussion, the one about home mortgage foreclosures. The rate of mortgage foreclosure across the country is increasing at an alarming speed, and almost 70% of homeowners facing foreclosure don’t seek assistance. That’s something we should all work to change.

If you are unable to make a mortgage payment, you should act right away. The U.S. Department of Housing and Urban Development (HUD) offers tips for homeowners in trouble, and the Federal Reserve has put together a list of foreclosure prevention resources.

Don’t ignore phone calls and letters from your lender. Be honest about your financial situation, and see if you can figure out a repayment plan that works. Lenders don’t want to take your house, and they have options to help you.

If you don’t have any luck with your lender, contact a HUD-approved housing counselor. Non-profits, like HOPE NOW, can also help you.

Avoid foreclosure prevention companies. Even if they are legit businesses, they will charge you a hefty fee to help. Worse yet, they could be scam artists who will ask you to sign over the deed to your house. You’ll still be in debt, and you’ll lose your home.

Don’t be embarrassed, and don’t believe that your situation is hopeless. Counselors and consumer protection offices have helped many people keep their homes, even in the most difficult situations. If you can’t make that next mortgage payment, please ask for help.

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