Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?

Don't ignore the letters from your lender

Contact your lender immediately

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

10 Government Tips You Should Know To Avoid Foreclosure from HUD

1. Don’t ignore the problem. Homeowners who have been contacted by their lenders should not ignore it. The longer a homeowner waits, the longer it will take to reinstate the loan and the more likely it is that the company will take the house.

2. Contact the lender as soon as you realize there is a problem. Lenders would prefer not to take the house and provide options to help borrowers through difficult times.

3. Open and respond to all mail from your lender. Lenders often provide tips to avoid foreclosure and could also include a notice of pending legal action.

4. Know your mortgage rights. Borrowers should read their loan documents to find out what their lender will do if payments are missed. Contact your local HUD field office and learn about your state’s foreclosure laws.

5. Understand foreclosure prevention options. The HUD provides options at its web site at: www.hud.gov

6.   Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development(HUD) funds free or very low-cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender, if you need this assistance. http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm or call (800) 569-4287 or TTY (800) 877-8339.

7.   Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses: cable TV, memberships, entertainment - that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8.   Use your assets. Do you have assets--a second car, jewelry, a whole life insurance policy--that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9.   Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help--use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10. Don't lose your house to foreclosure recovery scams! If any firm claims they can stop your foreclosure immediately and if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional or a HUD approved housing counselor.

 For more information on avoiding foreclosures, options and to see this list please visit www.hud.gov