At a news conference in Cleveland, the AFL-CIO provided these five
tips to avoid foreclosure.
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Seek help right away. The first step
is to recognize you have a problem and that you need to deal with
it. Rising rates and higher payments are threatening more
homeowners' ability to pay their mortgages. Experts suggest that you
start by contacting your lender immediately, as early as the first
month you have trouble making payment. In many cases, you can work
through difficult situations with your lender.
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Don't ignore communications from your
lender. Open all mail from your lender and answer all phone calls,
emails and other contacts. If you find yourself involved in legal
proceedings, you won't be able to plead ignorance if the loan holder
can demonstrate diligent efforts to get in touch with you.
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Know your rights. Once you realize you
are in trouble and you've opened up the lines of communication with
your mortgage company, that's a great start, but there's more to be
done. Review your loan documents for the specific language regarding
what the lender can and cannot do in case of non payment. Research
the foreclosure laws and timeframes in your state by contacting your
state government housing office. Visit
http://www.fha.gov/foreclosure/index.cfm for more information
and tips on avoiding foreclosures.
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Talk to a housing counselor. That
person can review your financial situation, determine your available
options and negotiate with your lender; protect you from future
credit problems before you get too far behind on your mortgage;
provide you with information on services and programs in your area
that provide financial, legal, medical or other assistance.
For housing counseling agencies
approved by HUD, call 800-569-4287. The Union Plus Save My Home
Hotline is 866-490-5361.
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Prioritize your spending. Look at your
budget and determine what you can trim down. Health care, food,
utilities and shelter are necessary expenses. But you might be able
to cancel cable or cell phone service entertainment expenses or
other non-essentials. You also might be able to sell a boat, second
car or jewelry.
atForeclosure.com