How to Know When To Contact Your Lender
If your mortgage is delinquent, the most important thing to do is to take action and contact your lender. Many lenders are engaging in responsible loss mitigation practices. For example, if you have the amount of money required to bring your loan current, the mortgage company will reinstate your mortgage. You may also contact your mortgage company and work out a repayment plan. Some other alternatives to foreclosure include a partial claim, straight modification, a permanent hardship, and a deed in lieu of foreclosure.
If you are facing foreclosure, seek help from a Department of Housing and Urban Development (HUD) approved housing counseling agency, such as Money Management International (MMI). MMI's housing counselors are trained on loss mitigation techniques and can help you understand all of your options. The housing counselors at MMI offer the following advice for working with your lender to prevent foreclosure:
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Stay in touch. It is better to contact your lender before they have to contact you. Help your lender understand how serious you are about keeping your home by responding quickly to their calls and letters.
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Be realistic. Do not make promises you cannot keep. It is better to admit you cannot pay what they are asking and come to a realistic agreement.
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Be responsible. Your lender is focused on helping serious, responsible homeowners who are committed and have the resources to avoid foreclosure. Make sure they understand that you are one of those people they should work with.
For more tips on how to avoid foreclosure and other housing counseling information, visit HUD’s web site at HUD.gov.