1. Helping Americans
2. Avoiding Foreclosure

Avoiding Foreclosure

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Are You At Risk of Foreclosure?

Tips for Avoiding Foreclosure

When a Lending Institution Won't Deal With You


Related Information

Talk to a HUD-Approved Housing Counseling Agency

FHA Loss Mitigation Services


There are a variety of programs to assist property owners who are at risk of foreclosure and otherwise fighting with their monthly mortgage payments. Please continue reading for a summary of resources offered.

Please read FHA's pamphlet, "Save Your Home: Tips to Avoid Foreclosure," also published in Spanish, Chinese and Vietnamese.

Contact Your Lender

If you are experiencing problems making your mortgage payments, you are motivated to contact your lending institution or loan servicer directly to ask about foreclosure avoidance alternatives that are available. If you are experiencing problem interacting with your mortgage lending institution or servicer about your need for mortgage relief, there are organizations that can help by getting in touch with lending institutions 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 uses a variety of different loss mitigation programs and informative resources to assist FHA-insured property owners and home equity conversion mortgage (HECM) customers facing monetary difficulty or unemployment and whose mortgage is either in default or at risk of default.

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

Click Here for responses to Frequently Asked Questions about FHA's loss mitigation programs.


Contact FHA

FHA personnel are offered to assist address your questions and assist you to much better comprehend your options as an FHA customer under these loss mitigation programs. There are numerous ways you can get in touch with FHA to learn more, consisting of:

- 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 via 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 danger of foreclosure and losing your home?
Foreclosure does not occur over night

Have you missed your house payment?

Look for a HUD-approved housing therapist, or.

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

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


Haven't missed out on a home payment yet, however afraid you might?

Has your monetary scenario altered due to a mortgage payment increase, loss of task, divorce, medical expenditures, increase in taxes or other factors?

- Is your credit card debt becoming unmanageable?

- Are you using your charge card to buy groceries?

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


If it's becoming harder to make your home payment every month:

Contact a HUD-approved Housing Counselor, or.

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

- Read our Tips for Avoiding Foreclosure.


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

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

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

Second month missed payment - your loan provider is most likely to start calling you to talk about why you have actually not made your payments. It is very important that you take their call. Talk to your loan provider and explain your circumstance and what you are attempting to do to resolve it. At this time, you still may be able to make one payment to prevent yourself from falling three months behind. A housing therapist can help.

Third month missed payment after the 3rd payment is missed, you will get a letter from your loan provider specifying the quantity you are overdue, and that you have 30 days to bring your mortgage existing. This is called a "Demand Letter" or "Notice to Accelerate." If you do not pay the defined amount or make some kind of plans by the given date, the lending institution might begin foreclosure procedures. They are not likely to accept less than the total due without arrangements being made if you get this letter. You still have time to work something out with your lending institution. A housing counselor can still help.

Fourth month missed out on payment - now you are nearing the end of time enabled in your Demand or Notice to Accelerate Letter. When the one month ends, if you have actually not paid the complete quantity or worked our plans you will be referred to your lending institution's attorneys. You will incur all attorney charges as part of your delinquency. A housing therapist can still help you.

Sheriff's or Public Trustee's Sale - the lawyer will schedule a Sale. This is the real day of foreclosure. You might be alerted of the date by mail, a notice is taped to your door, and the sale might be marketed in a regional paper. The time in between the Demand or Notice to Accelerate Letter and the real Sale varies by state. In some states it can be as fast as 2-3 months. This is not the move-out date, however completion is near. You have up until the date of sale to make arrangements with your lending institution, or pay the total quantity owed, including lawyer fees.

Redemption Period - after the sale date, you may go into a redemption period. You will be notified of your time frame on the same notice that your state utilizes for your Sheriff's or Public Trustee's Sale.


Important: Stay in contact with your loan provider, and get support 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 difficulty staying up to date with your mortgage payments? Have you received a notice from your loan provider asking you to contact them?

- Don't neglect the letters from your loan provider.

- Contact your loan provider immediately.

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


If you are not able to make your mortgage payment:

1. Don't ignore the problem.

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

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

Lenders do not want your house. They have options to help debtors through hard monetary times.

3. Open and respond to all mail from your lender.

The very first notifications you receive will offer excellent info about foreclosure avoidance alternatives that can assist you weather financial issues. Later mail might consist of essential notifications of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan files and read them so you understand what your lender might do if you can't make your payments. Find out about the foreclosure laws and timeframes in your state (as every state is various) by calling the State Government Housing Office.

5. Understand foreclosure prevention alternatives.

Valuable information about foreclosure prevention (also called loss mitigation) choices can be discovered online.

6. Contact a HUD-approved housing counselor.

The U.S. Department of Housing and Urban Development (HUD) funds totally free or extremely inexpensive housing counseling nationwide. Housing counselors can help you comprehend the law and your choices, arrange your finances and represent you in settlements with your lender, if you need this support. Find a HUD-approved housing therapist near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your costs.

After health care, keeping your house needs to be your very first concern. Review your financial resources and see where you can cut spending in order to make your mortgage payment. Search for optional costs-- cable TV, subscriptions, home entertainment-- that you can remove. Delay payments on charge card and other "unsecured" debt up until you have paid your mortgage.

8. Use your assets.

Do you have possessions-- a second cars and truck, jewelry, a whole life insurance coverage policy-- that you can cost cash to assist restore your loan? Can anybody in your family get an additional task to bring in extra earnings? Even if these efforts do not considerably increase your available cash or your earnings, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure avoidance business.

You do not require to pay costs for foreclosure prevention aid-- use that money to pay the mortgage instead. Many for-profit business will call you assuring to work out with your lending institution. While these might be genuine organizations, they will charge you a substantial fee (frequently 2 or 3 month's mortgage payment) for details and services your lending institution or a HUD-approved housing therapist will provide totally free if you contact them.

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

If any firm claims they can stop your foreclosure right away and if you sign a document selecting them to act upon your behalf, you might well be transferring the title to your residential or commercial property and ending up being a renter in your own home! Never sign a legal file without reading and understanding all the terms and getting professional guidance from an attorney, a trusted realty professional or a HUD-approved housing counselor.

When a Lender Won't Deal With You

You have actually done all your research, talked with a housing therapist and tried to speak to your lending institution. But, the lending institution won't work with you. What do you do now?

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

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

For conventional loans
If you have a conventional loan, first speak to a HUD-approved housing therapist at (800) 569-4287. They may have the ability to help you with your loan provider. You can also contact HOPE NOW or call the Homeowners Hope Hotline at (888) 995-HOPE to request assistance in dealing with your lending institution.