Tips for Avoiding Foreclosure

Are you currently having trouble making your mortgage payment? Has your mortgage company sent you notice or called you?

* Contact your lender immediately
* Contact a HUD-approved Housing Counseling Agency
* Don’t ignore the letters and calls from your lender
* TTY (800) 877-8339
* Toll FREE (800) 569-4287

If you are not able to make your mortgage payment:
1. Contact your lender as soon as you realize there is a problem.
Lenders don’t want your house back. They have options to help families that are going through tough financial times.
2. Don’t ignore that there is a problem.
The further you get behind the hard it is to reinstate the loan, and you will more likely loose your house.
3. Undertand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at
4. Open and respond to all your mail from lender.
The first notices you receive will offer good information about foreclosure prevention. The mail that will come later will give notice of pending legal action. Your failure to open your mail will not be a excuse in foreclosure court.
5. Know your mortgage rights.
Find your mortgage documents so you can find out what your options are with your currently lender if you can’t make your payment. Learn about the foreclosure laws and timeframes for your state by contacting the State Government Housing Office. Every states laws and timeframe are different.
6. Prioritize your spending
After healthcare, keeping your house is your first priority. Review your finances and see where you can start cutting back on spending. Look for luxury expenses like cable, memberships, and entertainment you can eliminate.
7. Contact a HUD-approved housing counselor

The U.S. Department of Housing and Urban Development (HUD) funds free or low cost housing counseling nationwide. Housing counselors can help you understand your options and the law; also they will organize your finances and represent you in the negotiations with your current lender if you need assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339

8. Avoid foreclosure preventions companies
You don’t need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (typically two or three month’s mortgage payment) for information and services your lender or a HUD approved housing counselor will provide you for FREE if you contact them.

9. Use your assets
Do you have assets, jewelry, a whole life insurance policy that you could sell to help re-instate your loan? Can anyone in your household get a extra job to bring in additional income? Even if these efforts don’t significantly increase your available cash or your income, they will demonstrate to your lender that you are willing to make personal sacrifices to keep your home.
10. Don’t lose your house to foreclosure recovery scams !
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title of your property and becoming a renter in your own home ! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

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Disclaimer: This information has been compiled and provided by as an informational service to the public. While our goal is to provide information that will help consumers to manage their credit and debt, this information should not be considered legal advice. Such advice must be specific to the various circumstances of each person's situation, and the general information provided on these pages should not be used as a substitute for the advice of competent legal counsel.