Be wary of potential scams. There always are people willing to take advantage of desperate individuals to make an easy profit. Never sign a legal document without reading it and being sure that you understand it. If you do not understand something, it is wise to seek trusted professional advice from an attorney or a HUD-approved counselor. (See
Know your mortgage. Review your loan documents to determine your rights and obligations under your mortgage. If you can
* Before you talk with your servicer, write down the specific problems you are having with your loan. What caused you to have difficulty in keeping up with your payments? Is the problem permanent or temporary? What solution would you like to reach?
* During the foreclosure prevention process, be sure to document all discussions you have with your servicer (e.g., write down the date, the name of the individual you spoke with, and the outcome of your call). Additionally, be sure to follow-up all telephone requests with a letter to your servicer. Finally, be sure to meet all deadlines provided to you during the process.
Communicate with your loan servicer. For some, the temptation may be to ignore communications from your loan servicer. Instead, be sure to talk with your servicer and let him or her know that you are having trouble making payments. A recent survey indicated that more than 50 percent of borrowers facing foreclosure do not discuss payment or modification options with their servicer. Some servicers will work with borrowers to help them avoid foreclosure by making their payments more affordable. If you ignore the problem, it will almost certainly make it worse. When discussing your loan with your servicer, be sure to do the following:
The prospect of losing your home to foreclosure certainly would be a terrifying experience. In the event you are having trouble keeping up with your mortgage payments, here are several suggestions to help avoid foreclosure.
Term
Servicer
# Foreclosure
5. If it sounds too good to be true, it probably is.
If you feel you may be the target or victim of foreclosure fraud, trust your instincts and seek help. For tips on spotting scam artists, visit the Federal Trade Commission s webpage on foreclosure rescue scams. Report suspicious schemes to your state and local consumer protection agencies, which you can find on the Federal Citizen Information Center s Consumer Action Website.
4. Know what you are signing–and be sure you sign it.
Don t let a counselor pressure you to sign paperwork you haven t had a chance to read through carefully or that you don t understand. Don t sign any blank forms or let the counselor fill out forms for you. Be sure to talk with an attorney before signing anything that transfers the title of your home to another party.