Thank you for visiting our Foreclosure Prevention webpage.
Every mortgage company and servicer believes every homeowner deserves the best information and education when experiencing a hardship that prevents them in making their mortgage payment on time. The sooner you get help with the problem, the better your chances of solving it.
Lenders ultimately want to keep homeowners in their home. Lenders and mortgage servicers have the authority and responsibility to use effective actions and strategies to help you stay in your home or at least help you avoid foreclosure while you try to sell your home if your hardship is going to be long term. Foreclosure is a process that allows a lender to recover the amount owned on a defaulted loan by selling or taking ownership (repossession) of the property securing the loan. Foreclosure is always the last resort and completely avoidable in most cases.
No, you do not have to be behind on your mortgage to be considered for a refinance or loan modification. If you are in an imminent danger of default based on facts and situation, and you most likely will be in default within the next 12 months, help is available today. And no you do not have to lose your home to foreclosure.
Please understand that foreclosure is a process, and there is time to make decisions that may result in a better outcome. Having the motivation to learn your options, the process and taking action immediately to select the route best for you and your family’s future is the most important decision you can make today.
If you are struggling to pay the mortgage and unsure of what to do next, please listen to the remainder of our message to help map out a plan in working with your lender. Stay in your home for now. You may not qualify for assistance if you abandon your property.
If your mortgage servicer has called or mailed you documents, do not ignore them. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court. Lenders want to help and the further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
All lenders are required to:
• Consider all reasonable means to address delinquency at the earliest possible moment
• Inform homeowners of available foreclosure prevention options
• Inform availability of housing counseling
• Pursue resolution and utilize a workout option whenever feasible to avoid foreclosure
So let's get started!
Your lender – also called the mortgage servicer provides several departments of assistance, i.e. Customer Service, Collections, Loss Mitigation and Foreclosure. We will be working with the loss mitigation department which was created between the federal government and the mortgage industry. The program was established to help homeowners that were facing the loss of their homes due to delinquent payments, stop foreclosure before it occurred. They have a variety of options to help you get back on track with your mortgage or help plan an exit strategy to relinquish homeownership while avoiding foreclosure and the massive credit damage that goes along with it when your hardship is long term and not curable.
Organize Your Personal Documents and Information
Prior to contacting your lender you must organize all the paperwork and develop a plan. Your lender will require you to complete a loan workout package. It is important that you complete it as soon as you receive it because in some cases the lender cannot proceed to the next step without the completed and signed documents. Keep in mind, your lender's loss mitigation department receives hundreds of calls, faxes and email requests daily. An incomplete package could delay or even decline your request for an option to save the home from foreclosure.
Prepare the following information:
• A brief explanation of your hardship and supporting documents
• A detailed list of all your expenses, loans, and bills (lifestyle budget)
• Proof of all household income including your pay stubs for the last 30 days
• Signed tax returns with all schedules for the past two years
• Current year-to-date profit and loss statement if self-employed
• Last 2 months of all bank account statements - all pages
• Visit your lender's website for additional instructions and required documents
Your package of forms and supporting documents is the equivalent of your first impression. Complete the package correctly the first time. An incorrect or incomplete package can delay approval process six months or longer. The process can be expedited significantly if these materials are assembled before hand
Contact Your Lender
Don't put it off, be embarrassed or be foolish because those responses will make the situation worse, not better.
Call today to discuss the appropriate solutions to your circumstances. You can find your lender's phone number on your mortgage bill. Be sure to have your account information handy and be ready to give a summary of the financial problems you are having. Be prepared for more than one conversation.
Helpful ToolsBefore calling your mortgage company, familiarize yourself with these various options.
Helpful Website - Information