Resources for Avoiding Foreclosure
Facing foreclosure can be a daunting experience, and we understand how difficult it can be to navigate the process alone. If you’re on this page, you may have already watched our videos on avoiding foreclosure, and we’re here to help.
We’ve compiled a list of resources that can assist you in this challenging time, including tips on negotiating with lenders, government programs that may be available to you, and other options for staying in your home.
If you need assistance or have any questions, please don’t hesitate to contact us. We’re here to support you through this process and find the best possible outcome for you and your family.
Glossary of terms and resources
- Forebarance – With permission from your lender, you can stop making payments or reduce your monthly payment for up to 12 months. Contact your lender.
- Loan Modification – With permission from your lender, you can request to change the terms of your current loan. For example, your lender can change the term, loan rate or both to make your monthly payments more affordable. Contact your lender.
- Refinance – If you have equity in your home, you may be able to refinance into a lower interest rate thus lowering your monthly payments. Here are a few companies that specialize in refinancing loans for homeowners with less than perfect credit.
- Mitigation – Every lender has a loss mitigation department. This is where you would work with the lender to get caught up on missed payments to avoid foreclosure. Contact your lender.
- Debt Consolidation – A debt consolidation company is one that combines all credit card debt into a single monthly payment. It could be a nonprofit credit counseling agency using a debt management program with no loan involved; a bank, credit union or online lender offering a debt consolidation loan; or a debt settlement company that requires a lump-sum payment to pay off the debt. Google “nonprofit credit counseling agencies” + “your county” or check here for the list of government approved credit counseling agencies.
- Non-Profits – There are many government approved non-profit agencies that can financially assist homeowners. Click here for the non profit list for your state.
- Cut expenses – There are organizations that can assist you with reviewing and cutting your expenses. Here is a government approved agency designed to assist you with managing expenses.
- Sell Unwanted items – Companies and sites like Poshmark, Craigslist and Facebook Marketplace are excellent places to start.
- Government Assisted Programs – There are a ton of government assisted programs that can help you with talking to your lender and providing financial assistance. Click here for the list of government agencies.
- Foreclosure companies – As I stated in my video, you do not need to pay anyone to speak on your behalf to your lender. BEWARE of any company that asks for an upfront fee in exchange for getting you a loan modification or saving your home from default.
- HUD – The US Department of Housing and Urban Development has several programs to assist homeowners. You can visit their website here.
- Attorneys – If you’re choosing to fight the foreclosure, you can do it on your own but I would highly recommend hiring an attorney to speak on your behalf. Working with any attorney, all conversations will be documented and there is a legal response time that all have to honor. If you dont know anyone who has worked with an attorney specialzing in Foreclosure or Bankruptcy, then Google find an attorney near me foreclosure, and you’ll see a list of attorney’s in your area.
- Bankruptcy – If all else fails, you may want to consider filing bankruptcy. While the process can be daunting, it will absolutely stop the foreclosure process thus allowing you to some breathing room to get your finances in order. I wouldn’t try to go this alone, speak to an attorney to know your options.