How to Avoid Judgment on a Mortgage
A foreclosure judgment can be financially and emotionally devastating. This happens when a judge awards ownership of your home to a mortgage company or lender because you stopped making payments on the mortgage. You could hire an attorney to appeal the decision---but a smarter move is working proactively to keep a judgment from even happening. NeighborWorks America, a national nonprofit organization, reports that there are many free resources for helping you avoid a foreclosure judgment.
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Instructions
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Contact a nonprofit housing counselor immediately---even if it is in the middle of the night. Obtaining credible advice as quickly as possible could help you avoid a judgment. The Home Ownership Preservation Foundation maintains a 24-hour hotline---seven days a week---offering emergency assistance for foreclosure avoidance. The hotline number is (888) 995-4673 and is staffed by housing counselors certified by the U.S. Department of Housing and Urban Development. The counselors can discuss your foreclosure situation, tell you if you need to seek immediate help from an attorney and also provide the name and address of a certified counselor in your city for a more extensive face-to-face meeting.
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Schedule a visit with the local counselor---preferably the same day you call the hotline, or the next business day. Describe your mortgage situation in detail, including a review of any foreclosure notices sent to you by the lender. Also tell the counselor if you have been served with a foreclosure lawsuit---a very serious event that could lead to a judgment.
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Ask the counselor to telephone your lender on your behalf as you seek to suspend the threat of judgment while developing a permanent solution. Join in on the discussion. With the help of the counselor, explain why you have fallen behind on your mortgage and how you plan to get back on track with the assistance of credit counseling. Then discuss long-term solutions that may be available through the lender. Possibilities include loan modification, which changes terms of your loan to make it more affordable, or a payment plan that allows you to make up for missed payments by paying more than the usual monthly payment until your account is current.
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Ask the lender for a written promise that foreclosure judgment proceedings will be halted while three-way negotiations continue between you, the lender and the certified housing counselor. Use the counselor's help to arrive at a solution that you can afford and the lender approves. Get the final terms in writing.
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Hire a real estate attorney if the lender has filed a lawsuit and is unwilling to negotiate. Ask the counselor to refer you to a reputable attorney or call your local Legal Aid office for a referral.
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