1. Helping Americans
2. Avoiding Foreclosure

Avoiding Foreclosure

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Are You At Risk of Foreclosure?

Tips for Avoiding Foreclosure

When a Lender Won't Deal With You


Related Information

Speak to a HUD-Approved Housing Counseling Agency

FHA Loss Mitigation Services


There are a number of programs to help house owners who are at danger of foreclosure and otherwise struggling with their month-to-month mortgage payments. Please continue reading for a summary of resources available.

Please check out FHA's sales brochure, "Save Your Home: Tips to Avoid Foreclosure," likewise released in Spanish, Chinese and Vietnamese.

Contact Your Lender

If you are experiencing difficulties making your mortgage payments, you are encouraged to contact your lending institution or loan servicer directly to inquire about foreclosure prevention options that are readily available. If you are experiencing problem communicating with your mortgage loan provider or servicer about your requirement for mortgage relief, there are organizations that can help by calling lenders and servicers on your behalf.

Assistance for FHA-Insured Homeowners

The Federal Housing Administration (FHA), which belongs of the U.S. Department of Housing and Urban Development (HUD), is working strongly to halt and reverse the losses represented by foreclosure. Through its National Servicing Center (NSC), FHA provides a variety of different loss mitigation programs and informative resources to help FHA-insured house owners and home equity conversion mortgage (HECM) customers facing monetary challenge or joblessness and whose mortgage is either in default or at threat of default.

Click Here to log onto the NSC Loss Mitigation Programs home page.

Click on this link for responses to Frequently Asked Questions about FHA's loss mitigation programs.


Contact FHA

FHA staff are offered to help address your concerns and help you to better comprehend your options as an FHA customer under these loss mitigation programs. There are several methods you can get in touch with FHA to learn more, including:

- Call the National Servicing Center at (877) 622-8525

- Call the FHA Outreach Center at (800) CALL FHA (800-225-5342).

- Persons with hearing or speech problems may access this number by means of TTY by calling the Federal Information Relay Service at (800) 877-8339.

Email the FHA Resource Center.

The Online FHA Resource Center.


Are you at risk of foreclosure and losing your home?
Foreclosure doesn't occur overnight

Have you missed your home payment?

Look for a HUD-approved housing therapist, or.

- Call toll free (800) 569-4287 to find a housing therapist near you, or.

- Call the Homeowners Hope Hotline at (888) 995-HOPE.


Haven't missed a house payment yet, however scared you might?

Has your monetary circumstance changed due to a mortgage payment increase, loss of task, divorce, medical expenses, boost in taxes or other reasons?

- Is your credit card debt becoming unmanageable?

- Are you utilizing your charge card to buy groceries?

- Is it becoming tough to pay all your month-to-month expenses on time?


If it's becoming harder to make your house payment monthly:

Contact a HUD-approved Housing Counselor, or.

- Call toll complimentary (800) 569-4287 to discover a housing therapist near you.

- Read our Tips for Avoiding Foreclosure.


Few individuals think they will lose their home; they believe they have more time.

Here's how it happens. Note: Timeline differs by state.

First month missed payment - your lender will call you by letter or phone. A housing counselor can assist.

Second month missed out on payment - your loan provider is likely to start calling you to go over why you have actually not made your payments. It is very important that you take their call. Talk with your lending institution and discuss your scenario and what you are attempting to do to fix it. At this time, you still may have the ability to make one payment to avoid yourself from falling 3 months behind. A housing counselor can assist.

Third month missed out on payment after the third payment is missed out on, you will receive a letter from your loan provider specifying the quantity you are delinquent, which you have thirty days to bring your mortgage current. This is called a "Demand Letter" or "Notice to Accelerate." If you do not pay the defined quantity or make some kind of plans by the offered date, the lender might start foreclosure procedures. They are not likely to accept less than the overall due without plans being made if you receive this letter. You still have time to work something out with your lender. A housing therapist can still assist.

Fourth month missed payment - now you are nearing the end of time allowed your Demand or Notice to Accelerate Letter. When the thirty days ends, if you have actually not paid the complete amount or worked our plans you will be referred to your loan provider's attorneys. You will incur all attorney costs as part of your delinquency. A housing counselor can still help you.

Sheriff's or Public Trustee's Sale - the attorney will schedule a Sale. This is the actual day of foreclosure. You might be informed of the date by mail, a notification is taped to your door, and the sale may be marketed in a regional paper. The time between the Demand or Notice to Accelerate Letter and the real Sale differs by state. In some states it can be as fast as 2-3 months. This is not the move-out date, but completion is near. You have till the date of sale to make plans with your lending institution, or pay the overall quantity owed, consisting of lawyer costs.

Redemption Period - after the sale date, you may go into a redemption duration. You will be informed of your timespan on the exact same notification that your state uses for your Sheriff's or Public Trustee's Sale.


Important: Remain in contact with your lender, and get help as early as possible. All dates are approximated and vary according to your state and your mortgage company.

Tips for Avoiding Foreclosure

Are you having trouble staying up to date with your mortgage payments? Have you got a notification from your lender asking you to contact them?

- Don't disregard the letters from your lending institution.

- Contact your lender immediately.

- Contact a HUD-approved housing counseling company.
Toll FREE (800) 569-4287.
TTY (800) 877-8339.


If you are not able to make your mortgage payment:

1. Don't disregard the issue.

The further behind you become, the more difficult it will be to reinstate your loan and the more most likely that you will lose your home.

2. Contact your lender as soon as you understand that you have an issue.

Lenders do not desire your home. They have options to help borrowers through difficult monetary times.

3. Open and respond to all mail from your lending institution.

The very first notices you receive will offer good information about foreclosure avoidance alternatives that can assist you weather financial problems. Later mail may consist of important notifications of pending legal action. Your failure to open the mail will not be a reason in foreclosure court.

4. Know your mortgage rights.

Find your loan documents and read them so you understand what your loan provider may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is various) by contacting the State Government Housing Office.

5. Understand foreclosure prevention choices.

Valuable details about foreclosure prevention (also called loss mitigation) choices can be found online.

6. Contact a HUD-approved housing therapist.

The U.S. Department of Housing and Urban Development (HUD) funds totally free or extremely affordable housing counseling nationwide. Housing therapists can help you comprehend the law and your options, organize your financial resources and represent you in negotiations with your loan provider, if you require this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your costs.

After health care, keeping your home must be your first priority. Review your financial resources and see where you can cut spending in order to make your mortgage payment. Look for optional costs-- cable television TV, memberships, home entertainment-- that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8. Use your assets.

Do you have possessions-- a second automobile, fashion jewelry, a whole life insurance coverage policy-- that you can offer for money to help reinstate your loan? Can anyone in your family get an additional task to bring in additional income? Even if these efforts don't substantially increase your readily available money or your income, they demonstrate to your lender that you want to make sacrifices to keep your home.

9. Avoid foreclosure avoidance business.

You do not require to pay charges for foreclosure avoidance help-- utilize that money to pay the mortgage instead. Many for-profit business will contact you guaranteeing to work out with your lending institution. While these may be genuine services, they will charge you a substantial charge (typically 2 or three month's mortgage payment) for information and services your lending institution or a HUD-approved housing counselor will provide complimentary if you contact them.

10. Don't lose your home to foreclosure recovery scams!

If any firm claims they can stop your foreclosure right away and if you sign a file selecting them to act on your behalf, you might well be signing over the title to your residential or commercial property and becoming a tenant in your own home! Never sign a legal file without reading and comprehending all the terms and getting expert suggestions from an attorney, a relied on real estate professional or a HUD-approved housing counselor.

When a Loan Provider Won't Work with You

You've done all your homework, spoke to a housing therapist and tried to talk with your lender. But, the lender won't work with you. What do you do now?

For an FHA-insured loan
Your lending institution has to follow FHA servicing standards and policies for FHA-insured loans. If your loan provider is not cooperative, contact FHA's National Servicing Center toll totally free at (877) 622-8525, or through email. Whether by phone or e-mail, be prepared to offer the full name( s) of all persons listed on the mortgage loan and the complete address of the residential or commercial property consisting of city, state and zip. We might have the ability to assist you quicker if you can likewise provide your 13-digit FHA case number from the loan settlement declaration.

For a VA-insured loan
Visit the VA Foreclosure Alternatives page.

For traditional loans
If you have a conventional loan, very first speak with a HUD-approved housing therapist at (800) 569-4287. They may be able to help you with your lending institution. You can likewise get in touch with HOPE NOW or call the Homeowners Hope Hotline at (888) 995-HOPE to request assistance in working with your loan provider.