How to Avoid Foreclosure
Contact your lender: If you are unable to make your mortgage payment, call your lender immediately to discuss the available alternatives to foreclosure. Many lenders offer foreclosure avoidance programs and have pledged publically to assist distressed borrowers. These can lead to win-win solutions for you and the lender.
Respond to your lender: Some lenders contact distressed borrowers to discuss available foreclosure avoidance options. Respond to these efforts. Your failure to do so may indicate a lack of interest in or commitment to paying your mortgage, and could result in the lender initiating foreclosure proceedings.
Check your eligibility for the federal government’s modification and refinance programs: You may qualify for assistance under the federal Home Affordable Modification Program (HAMP), the Home Affordable Refinance Program (HARP), or other similar government programs. If you cannot afford to make your monthly mortgage payments, you may qualify for a loan modification or loan refinance to make your monthly payment more affordable. To find out more about the program, visit www.MakingHomeAffordable.gov.