Tuesday, March 24, 2009 @ 11:02:00 AM - Written by Jennifer Serna
This is a website that will help anyone who is having trouble with their current loan. It has great links for information on working with lenders.
Steps to take when you can't pay your mortgage:
1. Contact your lender as soon as you have a problem
Many people avoid calling lenders about money troubles because we:
Steps to take when you can't pay your mortgage:
1. Contact your lender as soon as you have a problem
Many people avoid calling lenders about money troubles because we:
- Feel embarrassed discussing money problems with others
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Believe that if lenders know we are in trouble, they will automatically rush to a collection agency or foreclosure (seize property for failure to pay a mortgage debt)
But lenders want to help borrowers keep their homes because:
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Foreclosure is expensive for lenders, mortgage insurers and investors
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HUD and private mortgage insurance companies and investors like Freddie Mac and Fannie Mae require lenders to work aggressively to help borrowers facing money problems
Lenders have workout options (choices) to help you and:
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These options work best when your loan is only one or two payments behind
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The farther behind you are on your payments, the fewer options are available
Don't assume that your problems will quickly correct themselves:
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Don't lose valuable time being overly optimistic
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Contact your mortgage lender to discuss your circumstances as soon as you realize that you're unable to make your payments
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Look forward to your lender being willing to explore many possible solutions, without guaranteeing any one particular solution
Finding your lender
Check the following sources to contact your lender:
- Your monthly mortgage billing statement
- Your payment coupon book
Information to have ready when you call
- To help you, lenders usually need:
- Your loan account number
- A brief explanation of your circumstances
- Recent income documents:
- Pay stubs
- Benefit statements from Social Security, disability, unemployment, retirement, or public assistance
- Tax returns or a year-to-date profit and loss statement, if self-employed
- A list of household expenses
Expect to have more than one phone conversation with your lender. Typically, your lender will mail you a "loan workout" package. This package contains information, forms and instructions. If you want to be considered for assistance you must complete the forms fully and truthfully and return them to your lender quickly. Your lender will review the complete package before talking about a solution with you.
CALL YOUR LENDER TODAY! The sooner you call, the sooner help is available.
BEWARE OF SCAMS!
CALL YOUR LENDER TODAY! The sooner you call, the sooner help is available.
BEWARE OF SCAMS!
- Equity skimming: In this type of scam a "buyer" approaches you offering to repay the mortgage or sell the property if you sign over the deed and move out - usually leaving you with the debt and no house. Signing over your deed does not necessarily relieve you of the responsibility of paying the loan.
- Phony counseling agencies: charging for counseling that is often free of charge. If you have any doubt about paying for such services, call a HUD-approved foreclosure housing counseling agency toll free at (800) 569-4287 or TDD (800) 877-8339 before you pay anyone or sign anything.
- Do not sign anything you do not understand. It is your right and duty to ask questions
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Information is your best defense against becoming a victim of predatory lending, especially for a desperate homeowner.
For more information visit this website
http://www.federalreserve.gov/pubs/foreclosure/default.htm
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