Avoid Foreclosure

Contact Your Lender

It is important that you communicate with your lender as soon as possible. If you are having trouble making your loan payments, you may be able to work out a solution with your lender. Most lenders want to keep you in your home; contacting them before you fall behind on your payments is the best way to take advantage of all the options available. Many lenders are participating in a new plan to freeze the initial “teaser” interest rates on subprime loans for borrowers who are current on their payments. You should contact your lender to find out if you are eligible.

Contact a Counselor

Talk to a housing counselor. If you don't feel comfortable talking with your lender, you should immediately contact a housing counseling agency and make an appointment with a counselor. A good counselor can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. You can find a list of HUD-approved housing counseling agencies that provide free services at: HUD-approved Housing Counselors . More information can be found at the Housing/Credit Counseling section of this feature.

Beware of Predatory Practices

Beware of predatory lending schemes and other scams. Borrowers facing unemployment and/or foreclosure are often targets of predatory lenders and phony or for-profit counselors because they are desperate to find any "solution." Even some legitimate businesses charge a hefty fee that would be better spent on your mortgage than for their services. Rather than pay a large fee, or if you are unsure whether an offer is legitimate, contact a free HUD-approved housing counselor: HUD-approved Housing Counselors

More

Learn about other steps you can take to avoid foreclosure. Visit HUD’s website at Help for Homeowners Facing the Loss of Their Home (or in Spanish at Ayuda para propietarios que enfrentan la pérdida de sus viviendas) to find additional foreclosure avoidance tips.

Houseing/Credit Counseling