Understanding Your Situation

One of the biggest hurdles to overcome when you are having difficulties with your mortgage is knowing where to start.  Below is a list of steps you should consider.

Step 1

If you are behind on your mortgage payments, or anticipate that you may not be able to continue making your mortgage payments, call a local housing counselor to discuss the best course of action. Housing counseling is a free resource.

You can find a list of in-state housing counseling agencies here.  Don’t wait! The longer you delay, the fewer options you will have, and the more likely it will be that you will lose your home. Act now!

Step 2

When you talk with a housing counselor, you will need some information ready to begin the discussion. Here’s what you will need to get started.

  • Your latest mortgage statement or payment coupon.
  • The mortgage documents you received both before and at the closing of your mortgage loan.
  • All correspondence you have received from your mortgage servicer regarding your loan.
  • Copies of pay stubs for all the income earners in your household.

Print out and complete a personal profile intake form and a household budget form, which will assist your lender or the housing counselor in determining where you stand financially so they know what options may apply in your case.

Step 3

Be realistic in your expectations.

There are many variables to be considered in each situation, such as whether your financial difficulties are short-term or long-term and how far behind you are in your mortgage payments.

Some families who act early and are in a position to accept the terms of any modification agreements reached with their loan servicer can successfully save their home from foreclosure. Unfortunately, the financial situation of some families may not allow them to remain in their home. There may come a time when you need to make some difficult decisions regarding your own situation and whether you can afford to remain in your home.