Help
For Families Facing The Loss of Their Home.
For most families, a home is not only a
significant financial investment but also a source of pride.
The loss of a home,
due to unexpected events such as unemployment, can be financially
and personally devastating.
If you have been laid off or are facing unemployment, you
can keep your home and avoid foreclosure of your home- -
if you know the right steps to take.
FACING MONEY PROBLEMS?
Financial problems are most often associated with the following
life changes:
- Loss of job
- Cuts in work hours or overtime
- Retirement
- Illness, injury, or death of a family member
- Divorce or separation
If your family is facing any of these changes and cannot
pay your bills, now is the time to look closely at what you
owe and what you earn, eliminating unnecessary spending and
reaching out for help if you still can't meet your financial
obligations. Taking action now can help you protect your
family from the loss of your home. This page was created
to help you find advice, information, and web links that
will help you keep your home.
STEPS to TAKE when YOU MAY NOT BE ABLE to PAY YOUR MORTGAGE
- Contact Your Lender NOW!
- Talk To A Housing Counseling Agency
- Prioritize Your Debts
- Explore Loan Workout Solutions
- Are You Eligible for Disaster Relief/Military Options?
- Beware of Predatory Lending Schemes
CONTACT YOUR LENDER as SOON as YOU HAVE a PROBLEM
Many people avoid calling their lenders when they have money
troubles. Most of us are embarrassed to discuss our money
problems with others or believe that if lenders know we are
in trouble, they will rush to collection or foreclosure.
Lenders want to help borrowers keep their homes. Foreclosure
is expensive for lenders, mortgage insurers and investors.
HUD/FHA, as well as private mortgage insurance companies
and investors like Freddie Mac and Fannie Mae, require lenders
to work aggressively with borrowers who are facing money
problems.
Lenders have workout options to help you keep your home.
However, these options work best when your loan is only one
or two payments behind. The farther behind you are on your
payments, the fewer options are available.
Do not assume that your problems will quickly correct themselves.
Don't lose valuable time by being overly optimistic. Contact
your mortgage lender to discuss your circumstances as soon
as you realize that you are unable to make your payments.
While there is no guarantee that any particular relief will
be given, most lenders are willing to explore every possible
option.
FINDING YOUR LENDER
Check the following sources for lender contact:
- Your monthly mortgage billing statement
- Your payment coupon book
- Web links or customer service numbers
found under "help
for homeowners" lenders
Information To Have Ready When You Call,
To help you, lenders typically need:
- Your loan account number
- A brief explanation of your circumstances
- Recent income documents (such as Pay stubs; Benefit Statements
from Social Security, Disability, Unemployment, Retirement,
or Public Assistance. If you are Self-Employed, have
your tax returns or a Year-to-date Profit and Loss Statement
available
for reference)
- List of household expenses
This
article continued part 2>
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.
Article
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