Protecting a Mortgage

In today’s uncertain economy, many homeowners are having trouble keeping up with their mortgage payments. People find themselves in crisis for lots of reasons—including skyrocketing household costs, job loss, and serious illness. But foreclosure is not always inevitable. Here are a few tips from the U.S. Department of Housing and Urban Development (HUD):

• If you know you’re in trouble, contact your lender immediately. Lenders usually want to help you keep your property, as the alternative is often expensive for them.
• If you get a letter from your lender, open it immediately. Don’t ignore it because you can’t face your problems. Hiding from such problems only makes them worse.
• Know the laws and your rights. Call HUD, which offers low-cost or free counseling nationwide. HUD counselors can help you understand the law and your situation more thoroughly.
• Take a hard look at your finances. After healthcare, your house payment should be your next priority. Cut optional expenses like cable television, gym or other memberships, and other things you can live without.
• Assess your assets. Can you sell something to help you make your payments? Can someone else in the household get a job to contribute to the house payment?
• Don’t pay for foreclosure prevention help. Instead, use your money toward your house payment. Don’t fall for promises that these companies will negotiate a deal with your lender. They might, but they’ll probably charge you a huge fee for it. Use information and services available from your lender or from HUD counselors.
• Don’t fall for scams asking you to sign something that will “stop your foreclosure immediately.” You could be signing a legal document that hands over the title of your home to the scammer, making you a renter instead of an owner. 

 Article provided by CU Village.com through its Financial Resource Center content product.