5 Ways to Avoid Foreclosure

Once you move into your new home, you will want to make sure that you do nothing that could result in the loss of your home.

Make all payments on time

If you are having a dispute with the servicer, do not stop making your full payment each month.

If you do not make your monthly mortgage payments, you will be in default on your loan. If you are in default for a period of time, you could face foreclosure. Foreclosure is a legal process in which a mortgaged property is sold to pay off the defaulted loan.

Try to avoid additional mortgages and liens

Consider carefully before putting another mortgage or lien on your home.

Take advantage of the resources available to you

If you find yourself having trouble making your mortgage payments, or knowing you will soon have trouble making your payments, there are steps that you should take.

1. 1. 1. Contact your servicer, and tell your servicer you are interested in a loan workout. Be prepared to provide financial information. There may be a workout plan available to help you keep your home.

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   1. Take the calls from your servicer to see if you can get help. Even if you do not contact your servicer, your servicer is required to make good faith efforts to contact you, not later than when you are 36 days late on all or part of your mortgage payment. The purpose of this contact is to let you know that you are late in your payments, learn something about your circumstances, and, if appropriate, help you find out if there is a way to save your home.
   2. There are also HUD-approved housing counseling agencies that can provide you information on and assistance in avoiding foreclosure. You can look for housing counseling agencies in your area on the FPB’s website at consumerfinance.gov/find-a-housing-counselor or by calling HUD’s interactive toll-free number at 800-569-4287.
   3. You can also find information about avoiding foreclosure on the CFPB’s website consumerfinance.gov/askcfpb under mortgages and foreclosure prevention.
   4. HUD’s website provides homeowners with information about avoiding foreclosure, which can be found at hud.gov/foreclosure.

Beware of scams! Watch out for equity skimming when a buyer offers to repay the mortgage or sell the property if you sign over the deed and move out. Be aware that there are phony counseling agencies that charge you a fee for the same services you can usually receive at no charge. Be sure to use only HUD-approved counseling agencies. Most importantly, NEVER sign anything that you have not read or do not understand. For more information, go to consumerfinance.gov/blog/consumer-advisory-foreclosure-help-is-free-and-scams-are-expensive.

If you are ready to talk about what you can afford and what type of loans will fit your needs Choice Lending Corp of Lancaster can help you explore all the options. Call a lender or mortgage broker today at (877) 777-1203.