Entry bubble Facing Foreclosure? Find Help Now!

By: Editor | June 22, 2009 | Category: Money

Wendy Wagner is the staff editor and speechwriter for the Federal Housing Finance Agency. She has more than 20 years’ experience as a professional writer and editor. 

A few days ago, a neighbor mentioned that another neighbor was trying to avoid losing his home. His wife had been laid off from her job in March, and the couple was afraid they would end up in foreclosure.

I was glad to be able to tell my neighbor how to access programs to help them avoid foreclosure. And it occurred to me that lots of people are probably in the same boat. If you are facing foreclosure or worry that soon you might be, take these steps immediately to try to prevent losing your home:

First, call the company that services your loan—the place where you send your monthly mortgage payment. Check your mortgage payment book or monthly statement to verify which bank or mortgage company it is. Call and talk to someone about your situation and find out what options you have. Believe it or not, the servicers usually want to help rather than have someone lose their home. Sometimes they can offer immediate solutions or give you a referral to find help. The sooner you begin working with the servicer, the more likely you are to avoid foreclosure in the long run.

Next, find out if you are eligible for the new Making Home Affordable programs—you have to live in the mortgaged home, and the mortgage must be owned or guaranteed by Fannie Mae or Freddie Mac, although several major loan servicing companies have signed up to participate in the program for nonFannie/Freddie loans. To find out if you are eligible, visit www.makinghomeaffordable.gov. The site is simple and set up to help you quickly find answers to your questions.

Another source of information and assistance is the Department of Housing and Urban Development (HUD). HUD offers foreclosure avoidance counseling and has a complete list of approved counseling centers across the country. HUD also has a comprehensive information page with numerous resources and suggestions.

If you have even a slight worry that you could lose your home, there are programs out there that can help you head off the trouble early. Don’t wait to seek them out and get started.

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Entry bubble Avoid Foreclosure Rescue Scams

By: Nicole | August 15, 2008 | Category: Home and Family

Mortgage PaymentsA few weeks ago, I wrote a post about avoiding mortgage foreclosure. I know that topic resonated with a lot of folks. In addition to other worries, homeowners must now be more guarded than ever against foreclosure rescue scams. The fear of losing their homes can make even the savviest consumers susceptible.

The Federal Trade Commission and the Office of the Comptroller of the Currency both provide general descriptions of the most common foreclosure rescue scams:

  • Lease-back or repurchase scams happen when someone offers to pay your mortgage and rent your home back to you. This scheme often involves signing over your deed to a con artist.
  • Refinance Fraud occurs when people pose as mortgage brokers and offer to refinance your loan so you can afford the payments. Con artists may trick you into signing over the ownership of your home by saying that you are signing documents for a new loan.
  • Bankruptcy Schemes attempt to abuse the bankruptcy laws. The con artist may even file a bankruptcy case in your name, without your knowledge.

Here are some general tips to help you avoid these scams:

  • Read and understand everything you sign.
  • Don’t sign blank or partially completed documents.
  • Make payments directly to your lender or mortgage provider.
  • Contact your lender directly to discuss payments and options.
  • Never sign over the deed to your house without consulting a lawyer.
  • Report suspicious activity to the FTC or your state consumer protection office.

For more information about housing, visit the USA.gov Homes and Housing Page. Do you have any other tips for avoiding foreclosure scams?

| View Comments [3] | envelope E-mail This Entry | Tags: bank   foreclosure   fraud   home   housing   lending   loan   money   mortgage   nicole   scams  

 

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.

| View Comments [6] | envelope E-mail This Entry | Tags: avoid   difficulty   foreclosure   home   housing   lender   lending   money   mortgage   nicole   payment   prevent   trouble  

 

Entry bubble Avoiding Foreclosure

By: Marybeth | October 23, 2007 | Category: Home and Family

If owning a home is one of the great American dreams, then losing a home must be one of the great American nightmares.

What do you do if you can't pay your mortgage? I found some advice from the Consumer Action Website and the U.S. Department of Housing and Urban Development (HUD). Here are three of the major recommendations I took away: 

1. Don't Stick Your Head in the Sand -- If you miss mortgage payments and begin to receive letters from your lender, take action. You're more likely to keep your home if you acknowledge the problem and seek help. This recommendation sounds obvious, but it seems that about 50% of delinquent borrowers ignore the situation, perhaps out of embarrassment, fear, or the expectation that things will improve on their own.

2. Get a Counselor -- HUD sponsors free or low-cost counselors who can explain your options. Search for a counselor in your state or call (800) 569-4287 (TTY (800) 877-8339).

3. Beware of Scams -- Don't sign any documents without getting advice from an attorney, a trusted real estate professional, and/or a HUD-approved counselor.

You're not the only one who doesn't want you to lose your home. Lenders, local government, and neighbors are in your corner--albeit for reasons of self-interest. If your home goes the way of foreclosure, lenders stand to lose 20-60 cents on the dollar; local government agencies could be tapped for tens of thousands in fees; and neighbors could see a drop in their property values.

There are lots of practical reasons (starting with your credit) to avoid foreclosure, but there's also the American Dream factor. It's not as easy to quantify, but it can be a powerful force.

 Additional Resources:

Federal Trade Commission - Mortgage Payments Sending You Reeling? Here's What to Do

Federal Housing Administration - You Can Avoid Foreclosure and Keep Your Home

Federal Deposit Insurance Corporation - Foreclosure Statistics  (PDF)

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