1. Helping Americans
2. Avoiding Foreclosure

Avoiding Foreclosure

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Are You At Risk of Foreclosure?

Tips for Avoiding Foreclosure

When a Lending Institution Won't Work with You


Related Information

Speak to a HUD-Approved Housing Counseling Agency

FHA Loss Mitigation Services


There are a variety of programs to help homeowners who are at threat of foreclosure and otherwise dealing with their monthly mortgage payments. Please continue checking out for a summary of resources readily available.

Please check out FHA's sales brochure, "Save Your Home: Tips to Avoid Foreclosure," also published in Spanish, Chinese and Vietnamese.

Contact Your Lender

If you are experiencing problems making your mortgage payments, you are motivated to call your lender or loan servicer directly to ask about foreclosure prevention choices that are readily available. If you are experiencing trouble communicating with your mortgage lender or servicer about your need for mortgage relief, there are organizations that can assist by calling lending institutions and servicers on your behalf.

Assistance for FHA-Insured Homeowners

The Federal Housing Administration (FHA), which belongs of the U.S. Department of Housing and Urban Development (HUD), is working aggressively to halt and reverse the losses represented by foreclosure. Through its National Servicing Center (NSC), FHA offers a number of various loss mitigation programs and informative resources to help FHA-insured homeowners and home equity conversion mortgage (HECM) customers dealing with financial hardship or unemployment and whose mortgage is either in default or at danger of default.

Click Here to log onto the NSC Loss Mitigation Programs web page.

Click on this link for responses to Frequently Asked Questions about FHA's loss mitigation programs.


Contact FHA

FHA staff are offered to assist answer your concerns and assist you to better comprehend your choices as an FHA debtor under these loss mitigation programs. There are several ways you can contact FHA for more details, consisting of:

- Call the National Servicing Center at (877) 622-8525

- Call the FHA Outreach Center at (800) CALL FHA (800-225-5342).

- Persons with hearing or speech impairments might access this number via TTY by calling the Federal Information Relay Service at (800) 877-8339.

Email the FHA Resource Center.

The Online FHA Resource Center.


Are you at danger of foreclosure and losing your home?
Foreclosure does not happen overnight

Have you missed your house payment?

Look for a HUD-approved housing therapist, or.

- Call toll free (800) 569-4287 to find a housing counselor near you, or.

- Call the Homeowners Hope Hotline at (888) 995-HOPE.


Haven't missed a house payment yet, but afraid you might?

Has your monetary scenario altered due to a mortgage payment boost, loss of job, divorce, medical costs, increase in taxes or other factors?

- Is your charge card financial obligation becoming uncontrollable?

- Are you utilizing your credit cards to purchase groceries?

- Is it ending up being tough to pay all your monthly costs on time?


If it's ending up being harder to make your home payment every month:

Contact a HUD-approved Housing Counselor, or.

- Call toll free (800) 569-4287 to find a housing therapist near you.

- Read our Tips for Avoiding Foreclosure.


Few individuals think they will lose their home; they believe they have more time.

Here's how it occurs. Note: Timeline varies by state.

First month missed out on payment - your loan provider will call you by letter or phone. A housing therapist can help.

Second month missed out on payment - your lending institution is most likely to start calling you to discuss why you have not made your payments. It is important that you take their telephone call. Talk to your loan provider and discuss your scenario and what you are attempting to do to solve it. At this time, you still may be able to make one payment to avoid yourself from falling three months behind. A housing therapist can help.

Third month missed payment after the 3rd payment is missed, you will receive a letter from your loan provider specifying the quantity you are delinquent, which you have one month to bring your mortgage present. This is called a "Demand Letter" or "Notice to Accelerate." If you do not pay the specified quantity or make some type of plans by the offered date, the lender may start foreclosure proceedings. They are not likely to accept less than the overall due without arrangements being made if you receive this letter. You still have time to work something out with your lender. A housing counselor can still assist.

Fourth month missed payment - now you are nearing the end of time allowed in your Demand or Notice to Accelerate Letter. When the 1 month ends, if you have not paid the complete amount or worked our arrangements you will be referred to your loan provider's lawyers. You will incur all lawyer fees as part of your delinquency. A housing therapist can still help you.

Sheriff's or Public Trustee's Sale - the lawyer will arrange a Sale. This is the real day of foreclosure. You might be informed of the date by mail, a notification is taped to your door, and the sale may be marketed in a local paper. The time in between the Demand or Notice to Accelerate Letter and the real Sale differs by state. In some states it can be as fast as 2-3 months. This is not the move-out date, however the end is near. You have until the date of sale to make arrangements with your lending institution, or pay the overall quantity owed, including attorney costs.

Redemption Period - after the sale date, you may enter a redemption period. You will be notified of your amount of time on the exact same notification that your state uses for your Sheriff's or Public Trustee's Sale.


Important: Remain in contact with your loan provider, and get assistance as early as possible. All dates are estimated and vary according to your state and your mortgage company.

Tips for Avoiding Foreclosure

Are you having trouble keeping up with your mortgage payments? Have you received a notification from your lending institution asking you to contact them?

- Don't neglect the letters from your lending institution.

- Contact your lending institution instantly.

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


If you are not able to make your mortgage payment:

1. Don't disregard the issue.

The more behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your home.

2. Contact your lending institution as quickly as you recognize that you have a problem.

Lenders do not want your house. They have choices to help customers through difficult monetary times.

3. Open and react to all mail from your lending institution.

The first notifications you receive will offer great details about foreclosure prevention options that can assist you weather financial problems. Later mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan files and read them so you understand what your lender may do if you can't make your payments. Learn more about the foreclosure laws and timeframes in your state (as every state is various) by getting in touch with the State Government Housing Office.

5. Understand foreclosure prevention choices.

Valuable info about foreclosure avoidance (also called loss mitigation) alternatives can be discovered online.

6. Contact a HUD-approved housing therapist.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low-cost housing therapy nationwide. Housing therapists can assist you comprehend the law and your alternatives, organize your financial resources and represent you in settlements with your loan provider, if you require this assistance. Find a HUD-approved housing therapist near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your costs.

After healthcare, keeping your home must be your first concern. Review your financial resources and see where you can cut spending in order to make your mortgage payment. Look for optional expenditures-- cable television TV, memberships, home entertainment-- that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have actually paid your mortgage.

8. Use your properties.

Do you have assets-- a 2nd automobile, precious jewelry, an entire life insurance coverage policy-- that you can sell for money to help renew your loan? Can anybody in your family get an additional task to generate additional income? Even if these efforts do not significantly increase your offered money or your earnings, they demonstrate to your lender that you want to make sacrifices to keep your home.

9. Avoid foreclosure prevention business.

You don't require to pay costs for foreclosure avoidance assistance-- use that cash to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lending institution. While these may be legitimate companies, they will charge you a significant cost (often two or three month's mortgage payment) for information and services your lender or a HUD-approved housing counselor will offer complimentary if you contact them.

10. Don't lose your house to foreclosure healing frauds!

If any company declares they can stop your foreclosure instantly and if you sign a file selecting them to act upon your behalf, you may well be transferring the title to your residential or commercial property and ending up being a renter in your own home! Never sign a legal file without reading and understanding all the terms and getting professional suggestions from a lawyer, a relied on realty professional or a HUD-approved housing therapist.

When a Loan Provider Won't Deal With You

You have actually done all your research, spoke with a housing counselor and attempted to speak with your lender. But, the lender will not deal with you. What do you do now?

For an FHA-insured loan
Your lender needs to follow FHA servicing standards and regulations for FHA-insured loans. If your loan provider is not cooperative, contact FHA's National Servicing Center toll complimentary at (877) 622-8525, or through email. Whether by phone or email, be prepared to provide the complete name( s) of all persons noted on the mortgage loan and the complete address of the residential or commercial property consisting of city, state and zip. We might be able to assist you more rapidly if you can also supply your 13-digit FHA case number from the loan settlement declaration.

For a VA-insured loan
Visit the VA Foreclosure Alternatives page.

For conventional loans
If you have a traditional loan, first talk to a HUD-approved housing counselor at (800) 569-4287. They might be able to help you with your lender. You can also get in touch with HOPE NOW or call the Homeowners Hope Hotline at (888) 995-HOPE to ask for assistance in dealing with your lending institution.