How to Stop Fannie Mae Foreclosures
Fannie Mae is committed to helping people stay in their homes. The company provides funding to lenders, rather than providing mortgages directly. Families can work directly with Fannie Mae, the mortgage companies, and government-sponsored counseling services to avoid home foreclosure.
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Instructions
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Call your lender to work out payment terms that will help you avoid foreclosure. You may be able to work late payments into future payments or even refinance your loan.
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Call a service such as the Homeownership Preservation Foundation at 1-888-995-HOPE. Experienced counselors can help you develop a plan of action based on your financial situation.
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Look into HomeSaver Advance™. If your loan is owned by Fannie Mae, you may be eligible for an unsecured personal loan to help you catch up on mortgage payments. HomeSaver Advance is designed for qualified borrowers who have fallen behind on their mortgage, but are able to resume timely payments once their loan is brought current by the advance. It is payable over 15 years with no payments or interest for the first six months.
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Talk to your mortgage company about modifying the original terms of your loan to make the payments more affordable.
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Check with your state housing center for resources to help avoid home foreclosure. The U.S. Department of Housing and Urban Development has a list of state-specific resources on its "avoiding home disclosures" web page.
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Know your rights. Read your mortgage documents carefully so you know what your lender may do if you miss payments. Also know the local foreclosure laws.
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If foreclosure seems imminent, research other options, such as a short sale of your home. In a pre-foreclosure or short sale, the mortgage company may agree to accept a pay-off amount less than the balance of the mortgage. You may also be able to work out a deed-in-lieu, in which you voluntarily transfer the property to the mortgage company.
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Tips & Warnings
Seek help immediately. You will have more options the sooner you act. Work with your bank or lender to work out payment terms that you will be able to meet. Avoid mortgages with adjustable rates, if possible.
Watch out for foreclosure scams that require you to pay money up front. Avoid foreclosure recovery scams that require you to sign over your house--this means you will become a renter in your house.
