people avoid calling their lender when they have money troubles. Most
of us are embarrassed to discuss our money problems with others or
believe that if lenders know we are in trouble, they will rush to
collection or foreclosure.
Foreclosure is expensive for lenders, mortgage insurers and
investors. HUD/FHA, as well as private mortgage insurance companies
and investors like Freddie Mac and Fannie Mae, require lenders to
work aggressively with borrowers who are facing money problems.
options to help you keep your home. However, these options work
best when your loan is only one or two payments behind. The farther
behind you are on your payments, the fewer options are available.
not assume that your mortage problem will quickly correct itself.
Don't lose valuable time by being overly optimistic. Contact your
mortgage lender to discuss your circumstances as soon as you realize
that you are unable to make your payments. While there is no guarantee
that any particular relief will be given, most lenders are willing
to explore every possible option.
the following sources for lender contact information:
Your monthly mortgage billing statement
payment coupon book
assistance or phone book.
To Have Ready When You Call:
help you, lenders typically need:
loan account number
brief explanation of your circumstances
income documents such as pay stubs, Social Security benefits
statements, disability, unemployment, retirement, or public
assistance. If you are self-employed, have your tax returns
or a year-to-date profit and loss statement from your business
available for reference)
of household expenses
to have more than one phone conversation with your lender. Typically,
your lender will mail you a "loan workout" package. This package
contains information, forms and instructions. If you want to be
considered for assistance, you must complete the forms and return
them to your lender quickly. The completed package will be reviewed
before the lender talks about a solution with you.
Not Ignore Mail or Phone Calls From Your Lender
lender will try to contact you by mail and phone soon after you
stop making payments. It is very important that you respond to the
mail and the phone calls offering help. If your lender does not
hear from you they will be required to start legal action leading
to foreclosure. This will substantially increase the cost of bringing
your loan current. Do not ignore contact from your lender.
You Have an FHA Insured Loan
National Servicing Center
works closely with customers who have FHA insured loans. Check your
mortgage document or ask your lender if your loan is FHA insured.
Do you feel your lender is not responding to your questions? Do
you want assistance contacting your lender? HUD's National Servicing
Center is ready to help you.
information is brought to you through the collaborative efforts
of HUD/FHA, the Department of Veterans Affairs, Department of Labor,
Fannie Mae, Freddie Mac, and members of the mortgage industry.