Staying In Your Home: How to Avoid Foreclosure

Owning a home is a big part of the American dream, but sometimes, financial troubles can make it hard to keep up with mortgage payments.

If you're struggling to make your payments, or you're worried you might fall behind, there are steps you can take to stay in your home.
 

Quick Help for Your Mortgage Troubles

 

• Contact Your Mortgage Company: As soon as you realize there's a problem, reach out to your mortgage company. They often have ways to help you out.
• Use Free Counseling Services: There are approved housing counselors who offer advice for free or at a very low cost. You can find one through the Department of Housing and Urban Development (HUD) by calling 800-569-4287 or if you're hearing or speech impaired, via TTY at 800-877-8339.

 

Steps to Avoid Losing Your Home

 

1. Don't Ignore the Issue: The longer you wait to address your payment problems, the harder it will be to fix them and keep your home.
2. Talk to Your Lender: Lenders don't want to take your home. They'd rather work with you to find a solution, so talk to them as soon as you can.
3. Pay Attention to Mail from Your Lender: Your mortgage company will send you important information about saving your home. Don't ignore these letters. They might contain options to help you out.
4. Learn Your Rights: Look over your mortgage documents to know what your lender can do if you miss payments. You can also learn about the foreclosure laws in your state by contacting the State Government Housing Office.
5. Understand Your Options to Avoid Foreclosure: You can often find out about ways to help you keep your home online or through a HUD-approved housing counselor.
6. Cut Back on Spending: Make sure your home and health are your top priorities. Check where you could spend less to keep up with your house payments.
7. Consider Selling Something: Do you have a second car, jewelry, or anything else you could sell for extra cash? Could anyone in your family get a part-time job? These steps show your lender you're serious about keeping your home.
8. Be Careful with Companies Offering Help for a Fee: There are companies that will offer to help you avoid foreclosure for a fee. Often, you can get the same help for free, so save your money for your mortgage instead.

 

Foreclosure Timeline (Note: This timeline can vary by state)

 

• Month 1: Missed Payment – Your lender will reach out to you.
• Month 2: More Contact – Your lender will likely call to discuss why you haven't paid.
• Month 3: Demand Letter – You'll get a letter telling you how much you owe and that you have 30 days to pay.
• Month 4: Attorney Involvement – If you haven't made arrangements, your mortgage company's attorneys step in.
• Sheriff's or Public Trustee's Sale: The official foreclosure sale is scheduled if no solution is found.
• Redemption Period: After the sale, you may have a short period to reclaim your home.

Remember, it's best to act quickly and talk to your lender or a HUD-approved counselor as early as possible.

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Find out if you're eligible for more housing support here!