Call the Lender You may need to make a half dozen phone calls before you find the person responsible for handling short sales. You do not want to talk to the "real estate short sale" or "work out" department, you want the supervisor's name, the name of the individual capable of making a decision.


You certainly never imagined you'd be facing foreclosure when you purchased your new home. Whether you're dealing with an existing foreclosure on your credit reports or are trying to avoid having one, we can help. 

We understand that sometimes the unexpected happens and puts responsible home owners in regrettable circumstances. Our experts can give you the tips you need to help you avoid foreclosure and get back on track. 

If you've already experienced foreclosure, we can help you regain your financial credibility and take steps to become a home owner once more.





When you purchased your home, you no doubt had every expectation of making your monthly mortgage payments until you either paid the house off or sold it. Unfortunately, unforeseen disasters and tragedies happen to everyone from time to time, and it can be difficult, even seemingly impossible, to plan or prepare for them. 

If you find yourself in an unexpected predicament concerning your home mortgage payments, you need to take prompt action. Putting things off and hoping they will somehow work themselves out will not accomplish anything. 

If you don't take action within a certain period of time, your alternatives will begin to disappear. The worst-case scenario is foreclosure—what happens when your mortgage lender repossesses your home, forces you to move out and sells your home to try and recoup some of their financial losses. If the lender sells your home for less than the amount of your loan, you are often still liable for the remaining debt. 

If you are involved in a foreclosure, it is reported to the credit bureaus and will haunt you for years, narrowing your chances of acquiring a decent home loan in the future. 

Foreclosure should be avoided if at all possible. Here are some things you can do to avoid going through one yourself.



Do not ignore letters sent to you by your lender asking for explanations or for the money you owe. Instead you should take a proactive approach by doing the following:
  • Call or visit your lender immediately or as soon as you realize a problem is occurring or will occur in the near future.
  • Explain what has happened to prevent you from making your payments.
  • Have your financial information available. The lender will want to see everything: your monthly income, your expenses, and debts.
  • Try to negotiate an alternative plan with your lender. Generally, your lender is the first place to start. These people will be able to tell you what alternatives you qualify for, and since they deal with this kind of problem on a regular basis, they are usually prepared with answers and suggestions.


Remember: your lender does not want you to foreclose. Foreclosures are not good for anyone, including the lenders, so it is likely that if you have a real need, your lender will try to work something out with you. 

If things have gone so far that the lender has turned your case over to their legal department, waste no time. Contact the legal department and begin working with them to solve the problem. 

If you bought your home through an FHA insured loan, consider contacting a HUD-approved housing counseling agency. These agencies deal with mortgage loan problems all the time. Contacting them might make a difference in whether you keep or lose your home. Information on how to contact one of these agencies is listed at the end of this article. 

If you acquired your home loan through the VA, it is in your best interest to contact the Veteran's Administration office nearest you.



Lenders and HUD-approved counseling agencies have programs set up to help you keep your home in the event of unforeseen personal disasters. 

Mortgage modification: This program can help some people by extending the term of the mortgage loan or refinancing the loan. The two together could help you get back on track. Extending and/or refinancing your loan can lower your monthly payment, making it easier for you to catch up. In most cases, these ideas work best if you have experienced and recovered from a financial issue and are simply behind. You will need to be able to afford the new payment or mortgage modification is just a waste of time. If you still can't afford the new payment you'll have to search for a solution besides this one. 

Special forbearance: After the lender or counseling agency figures out your particular situation, they may be able to device a unique repayment plan that is within your means. Sometimes, special forbearance includes a reduction or even a complete suspension of your monthly payment. This type of plan can be put into effect if you have lost your job or had an unavoidable increase in your expenses. In order to qualify for this plan, you will need to prove to your lender that you can make the new payments.

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