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How To Avoid Foreclosure
The guidance below is applicable to homeowners with FHA insured loans. While a good deal of this information may apply to all homeowners in danger of losing their homes, not all of the foreclosure avoidance tools mentioned may be available to you if you have a VA or conventional loan. Additionally, FHA/HUD does not have any loss mitigation oversight over VA or conventional loans. Please contact your lender or a housing counseling agency.

What Happens When I Miss My Mortgage Payments?
Foreclosure may occur. This is the legal means that your lender can use to repossess (seize) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, but you also owe HUD an additional amount.

Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. You should avoid foreclosure if possible.

What Should I Do?
DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems making your payments, call or write to your lender's Loss Mitigation Department without delay. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.

Stay in your home for now. You may not qualify for assistance if you abandon your property.

Contact a HUD-approved housing counseling agency. Call (800) 569-4287 for the housing counseling agency nearest you. These agencies are valuable resources. They frequently have information on services and programs offered by government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge. However, if your lender has already started the foreclosure process, you may not have enough time for this option. Call (813) 504-7854 to get a detailed explanation of your options that may be available in your particular situation.

What Are My Options?
See our Forclosure Options page for a list detailing the various options that are available to you.

How Do I Know if I Qualify for Any of These Alternatives?
Your lender will determine if you qualify for any of the alternatives. A housing counseling agency can also help you determine which, if any, of these options may meet your needs and also assist you in interacting with your lender. Call (813) 504-7854.

Should I Be Aware of Anything Else?
Yes. Beware of Foreclosure Scams! Solutions that sound too simple or too good to be true usually are. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following:

Equity Skimming. In this type of scam, a "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember, signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

Phony Counseling Agencies. Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services, call a HUD-approved housing counseling agency at (800) 569-4287. Do this before you pay anyone or sign anything.

Are There Any Precautions I Can Take?
Here are several precautions that should help you avoid being "taken" by a scam artist:

Don't sign any papers you don't fully understand.

Make sure you get all "promises" in writing.

If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information.

What Are the Main Points I Should Remember?
Don't lose your home and damage your credit history.

Call or write your mortgage lender immediately and be honest about your financial situation.

Stay in your home to make sure you qualify for assistance.

Cooperate with the counselor or lender trying to help you.

Explore every alternative to keep your home.

Beware of scams.

And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation.
Act now. Delaying can't help. If you do nothing, YOU WILL LOSE YOUR HOME and your good credit rating.

Contact us for expert help and advice with your foreclosure situation. You can speak with someone personally by calling (813) 504-7854.

Information obtained from the U.S. Department of Housing and Urban Development.

   
Disclaimer

DISCLAIMER: Legal information is not the same as legal advice! The information on the ShavedLizard.com Web Site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal advice. As such, the information presented here should not be used as a substitute for consultation with a professional legal or other competent adviser. While we have made every attempt to ensure that the information contained on this Web Site has been obtained from reliable sources, we are not responsible for any errors or omissions, or for the results obtained from the use of this information.
Stephen Woodin, Investor (813) 504-7854