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Mortgage Tips
1. Immediately review your mortgage terms by examining your loan documents, particularly if you have a sub-prime or adjustable rate mortgage. Will a pending rate increase change your monthly payment? How much equity do you have in your home? Is there a prepayment penalty or other restrictions for refinancing?
2. Contact your lender if you have missed or might be unable to make your next payment. Most have experts that specialize in identifying your options. Your mortgage statement may include a specific phone number for that department, or you can call the main number and ask for “loss mitigation.”
3. Be honest. To find the best available options, you must provide your lender with complete and accurate information. Collect all your bills and other documents that reflect your financial situation. Don't describe it as better or worse than it actually is, be specific and don’t make any commitments you cannot keep.
4. Evaluate your personal budget. Search your budget for potential adjustments that will free up more money for mortgage payments.
5. Explore your options. Your lender can explain possible “retention” methods that help you keep your home or “liquidation” options that involve the sale of your property. Special programs also exist for homeowners with VA or FHA insured mortgages.
6. Consider a housing counselor who will work with you to create a budget that meets all your monthly expenses (including your mortgage) and can assist you and your lender in determining if a modified payment schedule can help. To find a housing counselor, visit www.fha.gov/sf/counseling or call toll free (800) 569-4287.
7. Avoid scam artists who prey on troubled homeowners with “foreclosure rescue” schemes that can make matters worse. Always check a company’s background and ask a trusted family member, attorney or a financial professional to review any paperwork you are asked to sign.
8. Visit websites like www.fha.gov or www.ftc.gov for more information on mortgages and credit counseling.
Mortgage Resources
NeighborWorks
NeighborWorks is a national network of more than 240 community-based nonprofit organizations created by Congress to provide financial support, technical assistance, and training for community revitalization efforts. NeighborWorks provides a variety of resources for preserving homeownership, including HOPE for Homeowners, a toll-free national hotline that offers free foreclosure prevention and counseling advice from a third party, HUD-certified, not-for-profit network of counseling agencies.
HOPE for Homeownership Hotline: 1-888-995-HOPE
Find a HUD-certified NeighborWorks organization:
Information on the Center for Foreclosure Solutions:
U.S. Department of Housing and Urban Development (HUD)
HUD provides a variety of resources for homeowners at risk of foreclosure. The Department funds free housing counseling services throughout the country. HUD-approved counselors can help homeowners understand the law and their options, organize their finances, and represent borrowers in negotiations with their lenders if this assistance is needed.
Telephone: 1-800-569-4287
Find HUD-Approved Housing Counseling Agencies in your State:
Additional HUD resources for avoiding foreclosure:
Illinois Attorney General’s Office
Homeowners who suspect that they have been a victim of fraud, misleading information, or other deceptive practices, should contact the Illinois Attorney General’s office. The office investigates complaints and sues lenders and other mortgage originators for alleged illegal behavior. In addition, mediation services are available for consumer complaints.
Illinois Attorney General Consumer Fraud line: 1-(800)-386-5438
Illinois Attorney General Website
For more information please contact Congresswoman Melissa Bean:
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