Q: What Happens
When I Miss My
Mortgage
Payments?
Foreclosure may
occur. This is
the legal means
that your lender
can use to
repossess (take
over) your home.
When it is
completed, you
must move out of
your house. If
your property is
worth less than
the total amount
you owe on your
mortgage loan, a
deficiency
judgment could
be pursued. If
that happens,
you not only
lose your home,
you may owe an
additional
amount.
Both
foreclosures and
deficiency
judgments could
seriously affect
your ability to
qualify for
credit in the
future. So you
should avoid
foreclosure if
possible.
Q: What Should I
Do?
-
DO NOT
IGNORE THE
LETTERS FROM
YOUR LENDER.
If you are
having
problems
making your
payments,
call or
write to
your
lender's
Loss
Mitigation
Department
without
delay.
Explain your
situation.
Be prepared
to provide
them with
financial
information,
such as your
monthly
income and
expenses.
Without this
information,
they may not
be able to
help.
-
Stay in your
home for
now. You may
not qualify
for
assistance
if you
abandon your
property.
-
Review this
list of
housing
counseling
agencies.
These
agencies are
valuable
resources.
They
frequently
have
information
on services
and programs
offered by
Government
agencies as
well as
private and
community
organizations
that could
help you.
The housing
counseling
agency may
also offer
credit
counseling.
These
services are
usually free
of charge.
Q: What Are My
Alternatives?
Click here to
find out what
alternatives you
may be
considered for.
Q: How Do I Know
if I Qualify for
Any of These
Alternatives?
Your lender will
determine if you
qualify for any
of the
alternatives. A
housing
counseling
agency
can also help
you determine
which, if any,
of these options
may meet your
needs and also
assist you in
interacting with
your lender.
Q: Should I Be
Aware of
Anything Else?
BEWARE OF
SCAMS!
Solutions that
sound too simple
or too good to
be true usually
are. If you're
selling your
home without
professional
guidance, beware
of buyers who
try to rush you
through the
process.
Unfortunately,
there are people
who may try to
take advantage
of your
financial
difficulty. Be
especially alert
to the
following:
Equity
skimming.
In this type of
scam, a "buyer"
approaches you,
offering to get
you out of
financial
trouble by
promising to pay
off your
mortgage or give
you a sum of
money when the
property is
sold. The
"buyer" may
suggest that you
move out quickly
and deed the
property to him
or her. The
"buyer" then
collects rent
for a time, does
not make any
mortgage
payments, and
allows the
lender to
foreclose.
Remember,
signing over
your deed to
someone else
does not
necessarily
relieve you of
your obligation
on your loan.
Phony
counseling
agencies.
Some groups
calling
themselves
"counseling
agencies" may
approach you and
offer to perform
certain services
for a fee. These
could well be
services you
could do for
yourself for
free, such as
negotiating a
new payment plan
with your
lender, or
pursuing a
pre-foreclosure
sale. If you
have any doubt
about paying for
such services,
call a
housing
counselor.
Do this before
you pay anyone
or sign
anything.
Q: Are There Any
Precautions I
Can Take?
Here are several
precautions that
should help you
avoid being
"taken" by a
scam artist:
-
Don't sign
any papers
you don't
fully
understand.
-
Make sure
you get all
"promises"
in writing.
-
Beware of
any contract
of sale of
loan
assumption
where you
are not
formally
released
from
liability
for your
mortgage
debt.
-
Check with a
lawyer or
your
mortgage
company
before
entering
into any
deal
involving
your home.
-
If you're
selling the
house
yourself to
avoid
foreclosure,
check to see
if there are
any
complaints
against the
prospective
buyer. You
can contact
your state's
Attorney
General, the
State Real
Estate
Commission,
or the local
District
Attorney's
Consumer
Fraud Unit
for this
type of
information.
Q: What Are the
Main Points I
Should Remember?
-
Don't lose
your home
and damage
your credit
history.
-
Call or
write your
mortgage
lender
immediately
and be
honest about
your
financial
situation.
-
Stay in your
home to make
sure you
qualify for
assistance.
-
Arrange an
appointment
with a
housing
counselor.
-
Cooperate
with the
counselor or
lender
trying to
help you.
-
Explore
every
alternative
to keep your
home.
-
Beware of
scams.
-
Do not sign
anything you
don't
understand.
And remember
that signing
over the
deed to
someone else
does not
necessarily
relieve you
of your loan
obligation.
Act now.
Delaying will
not help.
If you do
nothing, YOU
WILL LOSE YOUR
HOME and your
good credit
rating.
|
