Foreclosure prevention counseling helps individuals and families who have experienced financial hardships work through their payment and debt challenges.
Many times people avoid dealing with money issues because they don’t know how to solve them. After all, unless you come across a bunch of money you didn’t know you had, how can you solve it? When it comes to your home, you don’t want to put off problems that impact your ability to pay your mortgage. In fact, if you don’t have an issue, like a medical problem that keeps you from working or the loss of a job, you want to tell your bank right away so you can both work toward resolving the issue and staying current with your payments.
We get it - it’s hard to ask for help! But if you do seek help from a HUD-Certified Housing Counselor, your chances of getting through your crisis and staying in your home are much better. Here are some steps anyone can take to weather a crisis and prevent home foreclosure.
- Open and respond to all letters from your bank. We all get lots of junk mail! It’s understandable to think that most mail is not important. But mail is the primary way your lender will contact you if there’s an issue, change, or important news about your mortgage. Additionally, mortgage lenders get bought out or merge all the time, and that changes where your payment needs to be sent. If you miss that news, you can get behind on your mortgage for reasons that have nothing to do with your finances. Remember, never throw away mail that has your personal financial information--always shred it first.
- Make your home your priority. Having a budget can help you prioritize your spending and save for emergencies. When you’re making your budget, your mortgage payment should be your number-one priority. A home is the biggest investment most people will ever make.
- Talk to your bank as soon as you have a problem. It can be hard to ask for help! There are programs to help people who have temporary setbacks that affect their ability to pay their mortgage. But a HUD-Certified Housing Counselor speaks their language. Lenders appreciate enlisting the help of an expert!
- Know your rights. If you do get in a bind, you should be familiar with your rights as a mortgage holder and the timeframes involved. A HUD-Certified Housing Counselor can help advise you of the laws in your state. Make sure you get the time you are owed to resolve your situation.
- Use what you have. When times get tough, think creatively. Know what assets you have if you need extra money. Can you sell something? Get a second job? Can someone else in the home get a job? Foreclosure is a long process that results in you losing everything you have invested in your home. If you can make short-term sacrifices to keep it, seriously consider them.
- Watch out for scams. Foreclosure prevention companies and scams exploit people with the most to lose. Beware of quick fixes, companies that approach you, and fee-based programs. HUD-Certified Housing Counselors can help you negotiate with your bank, will offer information, not sales pitches, and will not pressure you into a decision.
- Contact a HUD-Certified Counselor. These counselors are trained in foreclosure prevention and offer their services for free to help you create a budget, organize your finances, keep your home, and get back on track to meet your financial goals.
Are you concerned about the possibility of foreclosure? Fill out the form below to talk to a HUD-Certified Housing Counselor and learn about your options.
