|
Unemployment, health problems, credit card
abuse, or unexpected expenses can cause you to fall behind on your monthly
mortgage payment. Repeated failure to make your mortgage payments on time
may cause your lender to evict you from your home and sell it in a legal
procedure called foreclosure. If you are having problems making your
payments, it is critical that you take the following steps to save your
house and protect your credit.
Communicate with your lender.
Do not ignore the letters from your lender. The Mortgage
Bankers Association of America recommends that you call or write to your
lender immediately, clearly explain your situation, and be prepared to
provide them with financial information, such as your monthly income and
expenses.
Remain
in your home. You
cannot qualify for many mortgage assistance programs if you have abandoned
your property.
Explore every reasonable alternative to avoid losing your
home.
Foreclosure is most often the last
resort for lenders. Your lender may be able to arrange a repayment plan,
refinance the debt and/or extend the term of the loan, help you obtain an
interest-free loan from HUD to bring your mortgage current, allow you to
sell your property and pay off your loan to avoid foreclosure, or accept
the voluntary return of your property before foreclosure
begins.
Contact a HUD-approved housing counseling agency near
you.
A list of agencies can be found on
the Internet at http://www.hud.gov/offices/hsg/sfh/hcc/hccprof14.cfm or by calling 1-888-466-3487. They have information
on services and programs that can help you and may also offer credit
counseling. These services are usually free of charge.
Beware
of scams. HUD warns
that solutions that sound too simple or too good to be true usually are.
Unfortunately, there are people who may try to take advantage of your
financial difficulty. Remember that signing over the deed to someone else
does not necessarily relieve you of your loan obligation. Check with a
lawyer or your mortgage company before entering into any transaction
involving your home.
And,
finally, do not to ignore your problems.
The advice that you receive from professionals in the
real estate industry can help you save your credit and home, if at all
possible. |