What is Foreclosure?
 

A situation in which a homeowner is unable to make principal and/or interest payments on his or her mortgage, so the lender, be it a bank or building society, can seize and sell the property as stipulated in the terms of the mortgage contract. Source: dictionary.com

FACT: Every Year Millions Of Americans Have Difficulty Paying Their Mortgages And Risk Losing Their Home.
 

Residents across the country from urban, rural and suburban settings - first time homeowners and long-time residents - unemployed, underemployed, working families and retirees from all income levels share the same concern - How do I keep my home?

 

FACT: No One Wants You To Lose Your Home Through Foreclosure.

Everyone loses in a foreclosure - the borrower, the mortgage company, the investors (like Fannie Mae and Freddie Mac), the community and the servicer.  When you are unable to afford to stay in your home, there may be more options than to go through a foreclosure or walk away.
 

FACT: You May Have Options - It’s Not Too Late.

Even homeowners already in foreclosure may have options. Many servicers offer foreclosure repayment plans and modifications to those who qualify.

FACT: If You Do Not Act - You Lose.

Get help NOW – the sooner you contact your lender or housing counselor, the more options you may have.  Mortgage companies have a number of possible workout options to help you avoid foreclosure.

 

What Should I Do First?

Contact your lender:

If you need contact information for your lender, click here.

Contact a HUD or MSHDA certified housing counselor:

If you are in Wayne County, click here for a list of local HUD and                  MSHDA certified foreclosure prevention counselors.

If you are outside of Wayne County, click here for a list of MSHDA certified housing counselors.

For 24-hour nationwide access to a HUD housing counselor, call the HOPE Hotline at 888-995-HOPE or visit online.
 

Know Your Workout Options:

Your options will depend on where you are in the timeline.  The earlier you get help, the more options you will have.
 

• Refinance
• Forbearance
• Reinstatement
• Repayment Plan
• Loan Modification
• Pre-foreclosure Sale or Short Sale
• Deed-in-Lieu

Foreclosure becomes a part of your credit report and may adversely affect your ability to obtain credit in the future.  Investors provide servicers with a wide array of workout options to offer their borrowers in financial distress. 

These standard workout options include forbearances, repayment plans, loan modifications, short sales and deeds in lieu of foreclosure.  Some options, such as modification, may be limited due to contractual restrictions, tax law and accounting rules. 

For a more detailed definition of these options, click here to go to our Dictionary of Terms.