How to Avoid a Foreclosure: Three Steps that Can Save Your Home
The recession has challenged homeowners from all backgrounds and all parts of the nation. Many are struggling to meet their mortgage payments and the threat of foreclosure is looming. This situation can be scary and confusing, so it’s important to fully understand all of your options.
Many lenders are willing to negotiate loan modifications, but these opportunities become much more limited as the months pass. The sooner you take action, the better. Fortunately, you don’t have to go through this process alone. Free assistance is available, and it all starts with an open dialogue.
Call Your Lender to Explain the Situation
If you have fallen behind on your mortgage payments, call your lender as soon as possible to explain your current financial situation. Many homeowners have been hindered by unexpected bills and higher living expenses. Your lender may be able to accommodate. An honest discussion is the first step. That’s when you’ll be presented with potential options based on your individual circumstances.
Meet with a HUD-Approved Housing Counselor
Homeowners who want one-on-one guidance and support can meet with a housing counselor from a non-profit agency for free.
In order to protect yourself against potential scams, only seek out housing counseling agencies approved by the U.S. Department of Housing and Urban Development (HUD). All HUD-approved agencies have specially trained counselors who can help you understand your rights and aid the negotiation process.*
Educate Yourself About the Foreclosure Process
Your lender or housing counselor can provide educational resources to help you understand the short and long-term impact of foreclosures. You can also find trustworthy information from the following online resources:
- Take Charge America’s Housing & Foreclosure FAQ
For further information, call Take Charge America at 623-266-6382 to speak with a HUD-approved housing counselor.
*Take Charge America is HUD-approved to assist Arizona homeowners facing foreclosure.