The possibility of losing your home is frightening. If you are in danger of falling behind on your mortgage payments, or if you are already behind, now is the time to take action. Business Consumer Alliance offers some tips that may save your home from foreclosure.
1. Contact your mortgage servicer. In 2014, federal laws were enacted that require mortgage servicers to help homeowners avoid foreclosure. This includes discussing all possible options available to the homeowner that may include modifications,
repayment plans, or forbearance, to name a few. If you do not know who your mortgage servicer is, there are a few ways to locate the information:
- Check your monthly billing statement. The mortgage servicer sends the bill for your monthly payment.
- If you have a payment coupon book, your mortgage servicer is listed there.
- Call the Mortgage Electronic Registration System, Inc. (“MERS”) Servicer Identification System at (888) 679-6377 or visit their website to see if your servicer is in their database.
2. Consult an expert. Contact a
HUD-approved housing counseling agency to obtain free advice about defaults, foreclosures, credit, and other issues. Call the Homeowner’s HOPE hotline at (888) 995-HOPE (4673) for more foreclosure assistance or visit MakingHomeAffordable.gov.
3. Avoid the cons. Scam artists often lure homeowners into paying thousands of dollars, most often up-front, offering false promises of help. Avoid falling prey to an unscrupulous predator by avoiding foreclosure relief scams altogether.
Help is available at no cost to you through a HUD-approved housing counseling agency. Never pay anyone an up-front fee for a loan modification. This practice is illegal.
4. Apply for assistance right away. If you submit a complete application early enough, your mortgage servicer is required under the new rules
to evaluate you for all the options available to you that might allow you to keep your home or leave your home if you prefer that option. The mortgage servicer isn’t required to evaluate you if you don’t complete your application. If you finish your application
for help, you also are protected from foreclosure while it is being evaluated.
Prepare for meeting with your loan servicer by writing down your income and expenses and calculating the equity in your home. To calculate the equity, estimate the market value less the balance of your mortgage or home equity loan.
You should also be prepared to address the following questions:
- Why was the mortgage payment missed?
- Do you have documentation to support why you fell behind?
- How have you tried to remedy the problem?
- Is the problem temporary, long-term, or permanent?
- What financial issues may be stopping you from getting back on track with your mortgage?
- Do you want to keep the home?
- What type of payment arrangement would be feasible for you?
- Are you better off selling the home?
Always keep notes of all communications with the servicer, including dates, who you spoke with, and the outcome. Obtain all verbal promises and requests in writing and meet all deadlines the servicer gives you.
When you’re facing the possibility of losing your home, time is not on your side. Don’t delay. By being proactive you may be able to save your home.
About Business Consumer Alliance:
Business Consumer Alliance (BCA) is a non-profit company which started in 1936. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint
information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is
to defraud the marketplace. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.