I have gotten calls from people who are struggling to pay their mortgages, keep their homes, and avoid foreclosure. As a reporter, I can tell people’s stories, keep the issue in the spotlight, and broadcast information to people about their options. Unfortunately, I can’t “fix” people’s problems. But from the reporting I’ve done, I can tell you what I know. With home prices falling, it is certainly in lenders best interest to work out a loan. So the first option is to make contact with your lender. Lenders are in the business of making loans, not modifying bad ones, so it may be a frustrating process, but they are the ones who can change the loan, so it may be worth the effort. Document each contact, who you spoke with, what time, and what the response was.
The HopeNow alliance is the industry’s voluntary effort to work out troubled loans, so another choice is to visit http://www.hopenow.com/ or call 1-888-995-hope. Mortgage counselors may be able to help you understand your options and even make contact with the lender on your behalf.
The Department of Housing and Urban Development also has a guide to mortgage counselors that can be reached by calling 1-800-569-4287 or visiting http://www.hud.gov/offices/hsg/sfh/hcc/hcc_home.cfm online.
The Federal Housing Administration may have a program that can help you, so it’s worth checking out: www.fha.gov/foreclosure/index.cfm or 1-800-call-FHA.
The non-profit group the Neighborhood Assistance Corporation of America is one group that offers counseling. It has relationships with banks and may be able to help work out a loan. It can be reached at https://www.naca.com/index_main.jsp or 1-888-302-naca.
If you think there is fraud involved in your situation, you may want a lawyer. At the website for the National Association of Consumer Advocates http://www.naca.net/, you may be able to find an attorney who specializes predatory lending in your area.
Many local governments are offering help for homeowners, so I would check out your local housing authority too.
Be very careful of firms that advertise foreclosure “help” or offer it for a fee. Sadly, there are con artists who will prey on people in desperate situations.
