Help
For Families Facing The Loss of Their Home.
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 and return them to
your lender quickly. The completed package will be reviewed
before the lender talks about a solution with you.
CALL TODAY! The sooner you call; the sooner help is available.
DO NOT IGNORE MAIL FROM YOUR LENDER
If you do not contact your lender, your lender will try
to contact you by mail and phone soon after you stop making
payments. It is very important that you respond to the mail
and the phone calls offering help. If your lender does not
hear from you they will be required to start legal action
leading to foreclosure. This will substantially increase
the cost of bringing your loan current.
INFORMATION for FAMILIES with FHA LOANS
The Federal Housing Administration (FHA) provides a wide
range of relief options for borrowers. There are many alternatives
and ways to get help. These may include mortgage modifications,
special forebearances, and other actions you can take to
avoid foreclosure.
HUD's National Servicing Center works closely with customers
who have FHA insured loans. Do you feel your lender is not
responding to your questions? Do you need assistance contacting
your lender? The NSC is ready to help!
TALK to a HOUSING COUNSELING AGENCY
If you don't feel comfortable talking with your lender, you
should immediately contact a HUD-approved housing counseling
agency and arrange an appointment with a counselor. A counselor
will help you assess your financial situation, determine
what options are available to you, and help you negotiate
with your lender. A counselor will be familiar with the
various work-out arrangements that lenders will consider
and will know what course of action makes the most sense
for you and your family, based on your circumstances. In
addition, the counselor can call the lender with you or
on your behalf to discuss a work-out plan. By meeting with
a counselor before your mortgage payments are too far behind,
you can protect yourself from future credit problems.
A good counselor will help you establish a monthly budget
plan to ensure that you can meet all of your monthly expenses,
including your mortgage payment. Your personal financial
plan will clearly show how much money you have available
to make the mortgage payment. This analysis will help you
and your lender determine whether a reduced or delayed payment
schedule could help you. Also, a counselor will have information
on services, resources, and programs available in your local
area that may provide you with additional financial, legal,
medical or other assistance that you may need.
To find out more about HUD-approved housing counseling agencies
and their services, please call 1 (800) 569-4287 on weekdays
between 9:00 am and 5:00 pm Eastern Standard Time. You can
also get an automated referral to the three housing counseling
agencies located closest to you by calling 1 (800) 569-4287.
Many of these local housing counseling agencies are affiliates
of national and regional housing counseling intermediaries.
The websites for the HUD-approved National and Regional Housing
Counseling Intermediaries describe the full range of assistance
offered, as well as maps showing location of their affiliates.
PRIORITIZE YOUR DEBTS: Write Our a Plan
For the unemployed, getting by will require a new, tightened
budget. Prioritize your bills and pay those most necessary
for your family: food, utilities and shelter.
Failing to pay any of your debts can seriously affect your
credit rating. However, if you stop making your mortgage
payments you could lose your house. Whenever possible, any
income available after paying for food and utilities should
be used to pay your monthly mortgage payments. If your employment
income has been stopped or reduced, first consider eliminating
or reducing your other expenses (such as dining out, entertainment,
cable, or even telephone services). If that does not provide
enough income, consider using other financial resources like
stocks, savings accounts, or personal property that may have
value like a boat or a second car. Take any responsible action
that will save cash.
Use the Internet to find a HUD-approved housing counseling
agency
or dial 1 (800) 569-4287 or TDD: 1-800-877-8339. These agencies
can provide financial counseling or refer you to a local
credit counseling agency.
When you call a consumer credit counseling
agency, you will be asked to provide current information
about your income
and expenses. Make sure you ask if the agency has a charge
before you sign any documents! PRESERVE YOUR GOOD CREDIT
Do not underestimate the importance of preserving your good
credit. Your future ability to purchase certain items, rent
or buy a home, and complete other transactions often requires
a credit check. Consumer credit agencies and your lender
can help you explore solutions to keep your credit from getting
blemished.
Maintaining good credit is even important for job hunters.
When you apply for a job, the employer probably will check
your credit report to determine:
- whether you have been sued
- have filed for bankruptcy
- or have trouble paying your bills
This
article continued Part 3>
Lois Center-Shabazz is the founder of MsFinancialSavvy.com
and author of the 3-time award-winning personal
finance book, Let's Get Financial Savvy! ISBN
#0971979502.
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