What happens if I don't pay my mortgage on time?
Foreclosure may occur. This means that your lender has the right to take back your home. If this happens, you have to leave your home. If the value of your home is less than what you owe on your mortgage, you could get a deficiency judgement. This means that you would not only lose your home, but you would also owe HUD money.
Both foreclosures and deficiency judgments could make it hard for you to get credit in the future. So you should try to avoid foreclosure if you can.
What do I need to do?
Do not ignore letters from your lender. If you can't make your payments, call or write right away to the loss mitigation department of your lender. Explain your situation. Be ready to talk about your finances, like how much money you make and how much you spend each month. If they don't know this, they might not be able to help.
Stay at home for the time being. If you give up your property, you might not be able to get help.
Talk to a housing counselling agency that is approved by HUD. For the housing counselling agency closest to you, call toll-free 1-800-569-4287 or TDD (800) 877-8339. These organisations are very helpful. They have information about services and programmes that government agencies, private businesses, and community groups might offer that could help you. The agency that helps people find homes may also help people with their credit. Most of the time, these services are free.
Who lent me money? How do I get in touch?
Check your monthly mortgage coupons or bills for the name and contact information of the lender.
I have a mortgage, but I can't remember what kind it is. How can I find out about this?
Look at the mortgage's original paperwork or call your mortgage lender.
Do I have to stay in my house to be eligible for help?
Most of the time, yes, but you should call your lender to talk about your situation and find out what options may be available.
My employer has already said that there will be layoffs next month. What should I do?
Here, you have started to learn about the choices you have. Now, figure out if your family will have trouble paying your mortgage if you lose your job. If so, think about what other ways you can pay your mortgage. Look at how you spend money and see where you can cut back. If you have a lot of other debt, you might want to talk to a non-profit agency that helps people with their credit. Use any help that your employer gives you. If you still think you won't be able to pay your mortgage, you should get in touch with your lender right away.
What are the most important points?
Don't let your house go into foreclosure and hurt your credit.
Call or write your mortgage lender right away and tell them the truth about your money.
Stay in your home to make sure that you can get help.
Set up a time to talk with a HUD-approved housing counsellor about your options by calling (800) 569-4287 or TDD (800) 877-8339.
Help the counsellor or lender who is trying to help you out.
Try everything you can to keep your home.
Watch out for cons
Sign nothing that you don't fully understand. And remember that giving the deed to someone else does not mean you are no longer responsible for your loan.
Do it now. Putting it off won't help. If you do nothing, you will lose your home and your good credit.
What can I do to protect myself?
Take these steps to avoid getting "taken" by a con artist:
Don't sign any papers that you don't fully understand.
Make sure you have a written record of all "promises."
Be wary of any sales contract that assumes your mortgage loan without giving you a formal release from your mortgage debt.
Before you do anything with your home, talk to a lawyer or your mortgage company.
If you're selling the house yourself to keep it from going into foreclosure, check to see if the buyer has a bad reputation. You can get this kind of information from the Attorney General of your state, the State Real Estate Commission, or the Consumer Fraud Unit of your local District Attorney.
If I get a workout option, will I have to pay for anything out of my own pocket?
For a loan modification, you might have to pay costs like recording fees. Since every situation is different, you should talk to your lender to find out more. But if you don't talk to your lender and they have to start the foreclosure process, you may have to pay very high legal fees. To keep this from happening, call your lender as soon as you think you might be in trouble.
Mortgage lenders
The mortgage lenders below have joined the federal government on their own to help homeowners who are worried about the future or who have lost money because of recent changes in the economy. If your lender is on this list, you can protect your home by getting in touch with them right away.
The Bank of America
Home Loans from Chase
Home Loans from Chase
CitiMortgage
Countrywide
The HSBC Mortgage Company
The Irwin Mortgage Company
James B. Nutter and Co.
Midland Mortgage
Service for Mortgage
Mortgages from National City
Nationwide Advantage Mortgage
Principal Residential Mortgage, Inc.
Sun Trust Mortgage
Wells Fargo Mortgage
The company Wendover Financial Services
Washington Mutual, Inc. Home Loans
