{"id":369132,"date":"2016-04-04T10:47:15","date_gmt":"2016-04-04T15:47:15","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/realestate\/foreclosure\/how-to-avoid-foreclosure.html"},"modified":"2024-06-02T01:09:27","modified_gmt":"2024-06-02T06:09:27","slug":"how-to-avoid-foreclosure","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/foreclosure\/how-to-avoid-foreclosure.html","title":{"rendered":"How To Avoid Foreclosure"},"content":{"rendered":"\n
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How To Avoid Foreclosure<\/h1>\n
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\n By FindLaw Staff<\/a> | Legally reviewed by Robert Rafii, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

If you’re having trouble making your mortgage payment, it is best to seek assistance as soon as possible. If you’re in default, you have a limited amount of time to stop foreclosure. Waiting may eliminate available options and delay help.<\/p>\r\n

If your lender repossesses your home, it will negatively affect your credit score. If your home is worth less than the mortgage amount, it may result in a deficiency judgment<\/a> against you (if state law permits). Below are some alternative options to help you avoid foreclosure<\/a> sales.<\/p>\r\n

Talk to a Foreclosure Prevention Counselor<\/h2>\r\n

Foreclosure prevention counselors can provide important information on how to avoid foreclosure and help the borrower create a plan. The U.S. Department of Housing and Urban Development (HUD) and the Federal Housing Administration (FHA) are there to help.<\/p>\r\n

HUD-approved housing counselors provide free advice. They can help determine whether a loan modification or refinance program applies. If eligible, the counselor may collect financial information from the borrower and send it to the lender. Visit HUD’s website<\/a> for a list of approved housing counselors.<\/p>\r\n

Be wary of housing counseling agencies<\/a> that charge a fee for advice or offer to "rescue" a borrower from foreclosure. Many scam artists prey on desperate consumers<\/a> by providing fraudulent services. Depending on the scam, some offer free help, while others charge a fee.<\/p>\r\n

Suppose a mortgage loan agency asks a borrower to pay for a loan modification<\/a>. Or suppose it tells the borrower to send their mortgage payment to the agency instead of the lender. Here, the agency may be engaging in illegal and\/or deceptive practices.<\/p>\r\n

Work Out a Plan With the Lender<\/h2>\r\n

Many lenders are willing to work with borrowers facing foreclosure. They are sympathetic to people having trouble making their mortgage payments. As part of their loss mitigation efforts, lenders have an interest in helping homeowners avoid foreclosure<\/a>. Contact your lender to discuss the following suggestions for how to avoid foreclosure:<\/p>\r\n