Foreclosure Prevention Checklist

Homeowners don't have to wait until they receive a notice of default to get help with foreclosure relief.

Federal government, state and nonprofit agencies have several foreclosure prevention programs available for homeowners to get help to keep their homes. All of these programs require that the property facing foreclosure be the homeowner's primary place of residence. The U.S. Department of Housing and Urban Development, or HUD, has partnered with the Homeownership Preservation Foundation in creating the HOPE hotline and a website with foreclosure prevention resources. Homeowners can also connect with a housing counselor on the Homeownership Preservation Foundation's online chat system.

Gather Documents

Before you contact a housing counselor, gather all your documents that will help determine your eligibility for help. The counselor will want to see your most recent pay stubs, tax returns and your monthly expenses. You should also have your mortgage payment statements available and the mortgage servicer's contact information. All foreclosure relief programs will require you to prove you have suffered a financial hardship and are unable to afford your mortgage payments. The counselor does not provide direct financial help to the homeowner.

Connect with a Counselor at 888-995-HOPE

The homeowner can connect with a HOPE hotline counselor 24 hours a day. The counselor will evaluate the homeowner's finances based on the information he provides her. The counselor can help the homeowner set a budget for monthly expenses and provide tips on how to stay within the budget. She can create a financial plan that may include getting help through one of the foreclosure prevention programs if the homeowner is eligible.

Apply for Help

If requested, the housing counselor can contact the mortgage servicer on the homeowner's behalf. She can help the homeowner work with the mortgage servicer to get a loan modification, refinance or forbearance plan. If preferred, the homeowner can determine if he is eligible for foreclosure relief and get in contact with the mortgage servicer on his own. The Making Home Affordable website details program eligibility requirements. The homeowner must contact the mortgage servicer to obtain an application for help avoiding foreclosure.

Rebuilding for the Future

A housing counselor can give a homeowner tips on saving so he can prevent getting into a financial bind in the future. Limiting credit cards usage will keep interest to a minimum and making timely payments will mean the homeowner can avoid getting charged late fees. Depending on the foreclosure prevention program the homeowner takes advantage of, a negative mark may still be reported on his credit history. This financial guidance will help the homeowner live within his means and help to rebuild his credit.

References

• Homeownership Preservation Foundation: Before You Call
• Homeownership Preservation Foundation: A Typical Foreclosure Prevention Counseling Session
• Making Home Affordable.gov: Start Here to Get Help