1. Helping Americans
2. Avoiding Foreclosure

Avoiding Foreclosure

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Are You At Risk of Foreclosure?

Tips for Avoiding Foreclosure

When a Loan Provider Won't Deal With You


Related Information

Talk to a HUD-Approved Housing Counseling Agency

FHA Loss Mitigation Services


There are a number of programs to assist homeowners who are at threat of foreclosure and otherwise having problem with their month-to-month mortgage payments. Please continue checking out for a summary of resources offered.

Please read FHA's sales brochure, "Save Your Home: Tips to Avoid Foreclosure," likewise released in Spanish, Chinese and Vietnamese.

Contact Your Lender

If you are experiencing problems making your mortgage payments, you are encouraged to call your lending institution or loan servicer directly to ask about foreclosure prevention choices that are offered. If you are experiencing problem communicating with your mortgage lending institution or servicer about your requirement for mortgage relief, there are organizations that can help by calling lenders and servicers on your behalf.

Assistance for FHA-Insured Homeowners

The Federal Housing Administration (FHA), which is a part of the U.S. Department of Housing and Urban Development (HUD), is working strongly to stop and reverse the losses represented by foreclosure. Through its National Servicing Center (NSC), FHA provides a variety of numerous loss mitigation programs and informational resources to help FHA-insured property owners and home equity conversion mortgage (HECM) debtors facing monetary challenge or unemployment and whose mortgage is either in default or at threat of default.

Click on this link to log onto the NSC Loss Mitigation Programs home page.

Click on this link for responses to Frequently Asked Questions about FHA's loss mitigation programs.


Contact FHA

FHA staff are offered to assist answer your concerns and assist you to better comprehend your choices as an FHA borrower under these loss mitigation programs. There are a number of methods you can get in touch with FHA to learn more, consisting of:

- Call the National Servicing Center at (877) 622-8525

- Call the FHA Outreach Center at (800) CALL FHA (800-225-5342).

- Persons with hearing or speech disabilities might access this number by means of TTY by calling the Federal Information Relay Service at (800) 877-8339.

Email the FHA Resource Center.

The Online FHA Resource Center.


Are you at threat of foreclosure and losing your home?
Foreclosure does not occur over night

Have you missed your home payment?

Search for a HUD-approved housing counselor, or.

- Call toll free (800) 569-4287 to find a housing therapist near you, or.

- Call the Homeowners Hope Hotline at (888) 995-HOPE.


Haven't missed a house payment yet, however scared you might?

Has your financial situation altered due to a mortgage payment boost, loss of job, divorce, medical expenses, boost in taxes or other factors?

- Is your charge card debt ending up being uncontrollable?

- Are you using your credit cards to purchase groceries?

- Is it ending up being tough to pay all your monthly costs on time?


If it's becoming harder to make your home payment monthly:

Contact a HUD-approved Housing Counselor, or.

- Call toll totally free (800) 569-4287 to discover a housing therapist near you.

- Read our Tips for Avoiding Foreclosure.


Few individuals believe they will lose their home; they believe they have more time.

Here's how it happens. Note: Timeline differs by state.

First month missed out on payment - your lender will contact you by letter or phone. A housing therapist can assist.

Second month missed payment - your loan provider is most likely to begin calling you to go over why you have actually not made your payments. It is necessary that you take their telephone call. Speak with your loan provider and discuss your scenario and what you are attempting to do to solve it. At this time, you still might have the ability to make one payment to avoid yourself from falling 3 months behind. A housing counselor can assist.

Third month missed out on payment after the third payment is missed, you will receive a letter from your lender mentioning the quantity you are overdue, which you have one month to bring your mortgage existing. This is called a "Demand Letter" or "Notice to Accelerate." If you do not pay the defined quantity or make some type of plans by the offered date, the lender might begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made if you receive this letter. You still have time to work something out with your lender. A housing therapist can still help.

Fourth month missed out on payment - now you are nearing completion of time allowed your Demand or Notice to Accelerate Letter. When the 1 month ends, if you have actually not paid the full quantity or worked our plans you will be referred to your lender's attorneys. You will sustain all attorney costs as part of your delinquency. A housing counselor can still help you.

Sheriff's or Public Trustee's Sale - the attorney will schedule a Sale. This is the actual day of foreclosure. You might be alerted of the date by mail, a notification is taped to your door, and the sale might be marketed in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale differs by state. In some states it can be as fast as 2-3 months. This is not the move-out date, however completion is near. You have up until the date of sale to make arrangements with your loan provider, or pay the total amount owed, including lawyer costs.

Redemption Period - after the sale date, you may enter a redemption duration. You will be informed of your amount of time on the very same notification that your state uses for your Sheriff's or Public Trustee's Sale.


Important: Remain in contact with your lender, and get help as early as possible. All dates are estimated and differ according to your state and your mortgage company.

Tips for Avoiding Foreclosure

Are you having problem keeping up with your mortgage payments? Have you received a notice from your lending institution asking you to contact them?

- Don't neglect the letters from your loan provider.

- Contact your loan provider immediately.

- Contact a HUD-approved housing counseling company.
Toll FREE (800) 569-4287.
TTY (800) 877-8339.


If you are unable to make your mortgage payment:

1. Don't disregard the problem.

The more behind you end up being, the more difficult it will be to restore your loan and the most likely that you will lose your house.

2. Contact your loan provider as quickly as you realize that you have an issue.

Lenders do not desire your home. They have choices to assist customers through hard financial times.

3. Open and react to all mail from your loan provider.

The very first notifications you receive will use great info about foreclosure avoidance choices that can assist you weather financial problems. Later mail might include important notifications of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights.

Find your loan files and read them so you understand what your lending institution might do if you can't make your payments. Discover the foreclosure laws and timeframes in your state (as every state is different) by getting in touch with the State Government Housing Office.

5. Understand foreclosure prevention alternatives.

Valuable info about foreclosure avoidance (also called loss mitigation) alternatives can be discovered online.

6. Contact a HUD-approved housing therapist.

The U.S. Department of Housing and Urban Development (HUD) funds free or extremely inexpensive housing therapy nationwide. Housing counselors can assist you understand the law and your alternatives, arrange your financial resources and represent you in settlements with your lender, if you require this support. Find a HUD-approved housing therapist near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize your spending.

After health care, keeping your house needs to be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Search for optional expenditures-- cable, subscriptions, home entertainment-- that you can remove. Delay payments on charge card and other "unsecured" debt up until you have actually paid your mortgage.

8. Use your assets.

Do you have properties-- a second car, precious jewelry, a whole life insurance coverage policy-- that you can sell for money to assist reinstate your loan? Can anyone in your home get an extra job to bring in extra income? Even if these efforts do not significantly increase your readily available money or your income, they show to your lending institution that you want to make sacrifices to keep your home.

9. Avoid foreclosure prevention business.

You don't require to pay fees for foreclosure prevention assistance-- utilize that money to pay the mortgage rather. Many for-profit business will contact you assuring to work out with your loan provider. While these may be legitimate companies, they will charge you a substantial charge (frequently 2 or three month's mortgage payment) for information and services your lending institution or a HUD-approved housing therapist will provide free if you call them.

10. Don't lose your home to foreclosure recovery frauds!

If any company claims they can stop your foreclosure right away and if you sign a document designating them to act upon your behalf, you may well be signing over the title to your residential or commercial property and ending up being an occupant in your own home! Never sign a legal document without reading and comprehending all the terms and getting expert advice from an attorney, a relied on genuine estate expert or a HUD-approved housing counselor.

When a Loan Provider Won't Work with You

You've done all your homework, talked with a housing counselor and tried to talk with your loan provider. But, the lender won't work with you. What do you do now?

For an FHA-insured loan
Your loan provider needs to follow FHA servicing standards and policies for FHA-insured loans. If your lender is not cooperative, contact FHA's National Servicing Center toll free at (877) 622-8525, or via e-mail. Whether by phone or e-mail, be prepared to offer the complete name( s) of all persons listed on the mortgage loan and the full address of the residential or commercial property including city, state and zip. We may have the ability to help you more quickly if you can likewise provide your 13-digit FHA case number from the loan settlement statement.

For a VA-insured loan
Visit the VA Foreclosure Alternatives page.

For conventional loans
If you have a conventional loan, first talk with a HUD-approved housing counselor at (800) 569-4287. They might have the ability to help you with your lending institution. You can likewise contact HOPE NOW or call the Homeowners Hope Hotline at (888) 995-HOPE to request assistance in working with your loan provider.