5 Things You Can do to Help Avoid Foreclosure

1. Don’t be paralyzed. Do something.

A lot of people are having some form of difficulty with their personal finances these days, and if you are one of them you need to know a few things about your mortgage. The first thing is to stay involved. Money problems can get you down, but don’t let them shut you down completely. If you fail to take action quickly and early you could be missing opportunities that could help.

2. Contact people who can help you. Call 211, they can connect you with a home ownership counselor.

Call 211: The United Way operates a toll free telephone service that will put you in touch with a home ownership counselor. The State of NH has earmarked money from the National Mortgage Foreclosure Settlement to pay for home ownership counselors to assist New Hampshire homeowners for free.

3. Learn your rights and enforce them. Call Legal Aid for free legal advice. 877-399-9995

You have legal rights. There are new federal regulations that put limits on what mortgage servicers can and can’t do when dealing with people who are behind on their mortgage payments. Call NH Legal Aid and get free legal advice. The National Mortgage Foreclosure Settlement also provides money for free legal services to New Hampshire homeowners.

4. MOST IMPORTANTLY: APPY FOR LOSS MITIGATION.

Loss mitigation is the phrase that your lender uses to refer to options to avoid foreclosure. If you are behind on your mortgage or if you know you are going to skip a payment, file an application for loss mitigation. If you submit a complete application to modify your loan soon enough, the servicer has to STOP the foreclosure process. By law the lender/servicer can’t start the foreclosure process until your payment is 120 days late. That is why the earlier you submit your application for loss mitigation the better off you are. The law also states that the lender/servicer has to stop foreclosure or, must not start the foreclosure process if you have submitted a complete loss mitigation application for to them 45 days before they send you a foreclosure notice. The catch is that you will not know when they will decide to send you a foreclosure notice. But, you will know when you are close to being 120 days late on your payment, and remember they can’t start the foreclosure process until after you are 120 days late.

5. Keep trying don’t give up.

Always keep trying. Even if they want you to send them the same documents over and over again, keep doing it. It keeps you in the game so to speak, and make sure you keep track of everything you send them. You should also try to save as much money as you can during the process, just in case you have to catch up on your escrowed taxes and insurance.

Remember, call legal aid and a housing counselor as soon as you start to miss payments so you can find out the best way to deal with the situation.