If you are behind on your house payments and worried about a foreclosure, there are a few steps that you can take in order to avoid a foreclosure. The Consumer Financial Protection Bureau (CFPB) has recently put new rules in place to help you avoid foreclosure.
First of all, these rules require your mortgage servicer to discuss options with you to help avoid foreclosure. You should take the initiative to contact your mortgage servicer and specifically ask what options you have to avoid foreclosure.
Secondly, you may wish to contact an expert for advice. At no cost to you, you can find a HUD approved housing counseling agency by visiting the above mentioned website or by calling 1-888-995-4673 (HOPE).
Thirdly, don’t fall prey to one of the many scam artists who try to take advantage of homeowners in trouble. There are hundreds of companies out there who promise they can help you but charge you thousands of dollars up front for a service they cannot and do not intend to perform. As already mentioned, a HUD approved counselor is available for no charge to you.
You can also submit an application for any programs that your lender may offer for a loan modification that can lower both your monthly payment and your interest rate. Be mindful, though, that most of these applications must be completed in a certain time frame in order to avoid going into foreclosure.
If you have a problem with your lender discussing any of the above, The Consumer Financial Protection Bureau (CFPB) accepts complaints about mortgage companies. They will forward your complaint to the mortgage company and work to get you a response. You can submit a complaint on the CFPB website or by calling 855-411-2372.
If you have taken action and still find yourself facing a foreclosure sale, then exploring a bankruptcy or debt consolidation option may be the most prudent resolution for you. If you would like to discuss the options that our firm can offer to help you stop a foreclosure, please contact our office nearest you immediately, as time is always of the essence in these types of situations, and schedule a free consultation with one of our licensed attorneys. We urge our prospective clients not to wait until very near the foreclosure sale date to explore their options. In most jurisdictions, the foreclosure sale date cuts off a person’s rights to his or her home.
Amy K Tanner is a shareholder in several of the Bond & Botes Law Offices. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Thomas Goode Jones School of Law. She focuses primarily on consumer bankruptcy law in the Huntsville and Decatur offices.Read her full bio here.