7-Step HUD Guide to Avoid Foreclosure
HUD’s (U.S. Department of Housing and Urban Development) tips for homeowners who are having problems in making their mortgage payments or are already in default.
- Most importantly, don’t ignore the problem. Timely attention to the challenges that you are facing will increase the chances of reinstating your home loan.
- Contact your lender or a counselor who can assist with negotiating a loan modification immediately, even if you are just anticipating having a problem.
- Open and respond to all mail from your lender.
- Know your mortgage rights. Each state has unique foreclosure laws and timeframes.
- Understand foreclosure prevention options.
- Prioritize your spending with healthcare and mortgage payments being most important. Cut your spending on recreational activities and delay payments on unsecured debt like credit cards.
- Avoid frivolous foreclosure prevention companies and foreclosure recovery scams.