How to Stop Foreclosures Using Emergency Assistance
Credit and housing counselors can help you stop a foreclosure. Fast action may be needed to temporarily halt the foreclosure proceedings until a permanent solution can be found. People who are trained in foreclosure avoidance are available in virtually every community and can help you stop foreclosure by contacting your lender on your behalf. These emergency assistance resources are often free, and the U.S. Department of Housing and Urban Development says you should ask for help as quickly as possible.
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Instructions
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Call 888-995-4673 to speak to an emergency housing counselor from the Homeownership Preservation Foundation, a nonprofit organization endorsed by the U.S.Department of the Treasury and the U.S. Department of Housing and Urban Development (HUD). According to its website, the foundation has fielded calls from more than 500,000 people since 2002. Explain your foreclosure situation and ask the counselor to recommend emergency assistance in your town. Possibilities include local churches or charitable organizations that may be able to offer payment assistance. Also ask to be referred to a trained foreclosure prevention specialist in your town, such as a credit counselor with Consumer Credit Counseling Service or a similar reputable, nonprofit organization.
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Contact a credit counselor in your city using the information provided by the Homeownership Preservation Foundation. Ask for a same-day appointment, if possible, to discuss your foreclosure problem and plan an immediate course of action. Also act on other advice from the foundation, such as contacting charitable organizations possibly offering payment assistance.
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Contact your lender by telephone or in person, and have the nonprofit credit counselor participate in the discussion. It's legal and acceptable to include the credit counselor. Discuss emergency options for stopping the foreclosure, including forbearance, which allows the lender to reduce or suspend your payments until your financial situation improves, or reinstatement, which allows you to bring your account current by paying a certain amount by a fixed date. Another option is a repayment plan, which can work in a variety of ways, including allowing you to pay a little extra each month until you catch up. Your credit counselor can make a recommendation to the lender based on her evaluation of your situation. Work with the lender and credit counselor to arrive at a suitable agreement ending the foreclosure threat.
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Tips & Warnings
There may be charitable organizations in your town helping with foreclosure avoidance, but meeting with your lender should be your first step, according to the HUD. Some people are able to delay foreclosure proceedings with frivolous lawsuits, but HUD says the best way to save your home is to work with your lender directly and avoid so-called foreclosure rescue attorneys and firms.
References
- Photo Credit House image by Gonçalo Carreira from Fotolia.com
