The further you fall behind, the harder it will be to repay your loan, and the more likely you are to lose your home.
2. As soon as you realize you’re having trouble making your mortgage payments, call or write your lender right away.
Lenders don’t want your home and have options to help borrowers during times of financial hardship.
3. Read and answer all correspondence you receive from your credit bureau.
The first notifications you receive will provide you with beneficial information about the options available to avoid an execution that can help you overcome financial problems. Subsequent correspondence may include important notices of pending legal action. Not opening your correspondence will not serve as an excuse for a deficiency or foreclosure trial.
4. Know your mortgage rights.
Look for your loan documents and read them, so you’ll be aware of the steps your credit bureau can take if you can’t make your payments. Learn about enforcement laws and contact the State Government Office of Housing to find out how long you have in your state.
5. Study options to prevent foreclosure.
The Federal Housing Administration portal has valuable information on options to prevent foreclosure (also known as loss mitigation or payment alternatives).
6. Consult a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development HUD provides funding for free or very low-cost housing counseling services nationwide. Housing counselors can help you understand the law and the options available; They can also offer advice on how to organize your finances and represent you in negotiations with your credit bureau, should you need this help. Call (800) 569-4287 or contact us by TDD at (800) 877-8339 for information about the housing counseling agency in your area.
7. Prioritize your spending.
Examine your finances and see where you can cut expenses so you can make your mortgage payment.
8. Use your resources.
Do you have resources such as, a second car, jewelry, a life insurance policy, and pension that you can sell to help rehabilitate your loan? Even if these efforts don’t significantly increase your disposable cash or income, they show your lender that you’re willing to make sacrifices so you don’t lose your home.
9. Avoid eviction prevention companies
You don’t need to pay anything to get eviction or enforcement prevention help. Rather, use that money to pay off the mortgage. Many businesses that operate to make a profit will get in touch, promising to negotiate for you with your credit bureau. While these may very well be legitimate businesses, they will charge you fairly high fees (often the amount of your two- or three-month mortgage payment) for information and services that your credit bureau or a HUD-approved housing counselor will provide for free just by contacting them.
10. Beware of execution recovery scams!
If a company claims that they can stop execution immediately by just signing a document assigning them to act on your behalf, you may very well be signing the title to your property and becoming a tenant of your own home! Do not sign any legal document without first reading and fully understanding all terms.
DON’T LOSE YOUR HOME
For more information about the help that is available in Miami to avoid losing your home, visit MiamiDade.gov