Tips for Preventing Foreclosure

Contact your lender as soon as you realize that you have a problem.

If you are worried about making your payment a couple of weeks later than usual, you should immediately let your loan servicer know when you will be making the payment. Make sure the servicer has documented the anticipated date you will be making the payment. Lenders do not want your house. They have options to help borrowers through difficult financial times. If you do not have your servicer's contact information, it may be found on the Loan Servicers List link on this site.

If you are unable to make your mortgage payment:

Don't ignore the problem.

The further behind you become, the harder it will be to bring your loan current and the more likely that you will lose your house.

Contact a housing counselor.

Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. To find a housing counselor in your area, go to the housing counselor agencies page.

Open and respond to all mail from your lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you have a positive outcome. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse later in the foreclosure process. Keep every piece sent to you so you can get it to your housing counselor.

Know your mortgage rights.

Locate your loan documents and read them to try to get some idea as to what will take place if you are unable to make your house payments. You may want to contact a housing counselor because you may have several options. Do not be afraid to ask what the mortgage loan documents mean. Your housing counselor will be able to explain what is in the loan documents, as well as explain the foreclosure laws and time frames in New Hampshire. Be sure to take these loan documents with you when you see your housing counselor. Make certain you understand everything explained to you.

Understand foreclosure prevention options.

Your housing counselor has valuable information about foreclosure prevention (also called loss mitigation) options. Make certain you understand these options when they are explained to you by your housing counselor. If you do not understand it the first time, do not be afraid to ask to have it explained again. Many of the concepts are difficult to understand.

You can also visit a new website from Fannie Mae, KnowYourOptions.com, where you can interactively get an idea of where you stand and what your options may be in trying to save your home.

Prioritize your spending.

After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses - cable TV, memberships, entertainment - that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage. Your housing counselor will help you put together a spending plan. It will be a “crisis spending plan” initially. Once you are able to get some cash together to start paying back your delinquent payments, you and your housing counselor will development a more stable spending plan together.

Use your assets.

Do you have assets - a second car, jewelry, whole life insurance policy - that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate you are willing to make sacrifices to keep your home. Your housing counselor will give you more tips on how to tighten your spending.

Avoid foreclosure prevention companies.

You don't need to pay fees for foreclosure prevention help - use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your housing counselor will provide free. New Hampshire law provides protection to consumers from misleading foreclosure counseling services. The Rescue Scams page on this site has more information on this topic. You may also want to obtain legal advice.

Don't lose your house to foreclosure rescue scams!

If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms. If there is any doubt at all, get assistance from a housing counselor or from an attorney. More detail about Rescue Scams can be found on another page.

Don't ignore the problem.

The longer you wait to get help, the harder it will be for your housing counselor or your lender to assist you. Losing your home may be the price you pay for thinking something will come along to fix everything. Action is what will make that happen.

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