How can I save my home from foreclosure?
At FHFA, we know the mortgage-finance world can be confusing. People often think this agency can help them get a mortgage or refinance a mortgage. But that’s not what we do.
FHFA is the federal regulator of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. The entities we regulate purchase, guarantee, and in other ways finance mortgages after they have been made. They don’t originate the mortgages themselves.
An important new government Web site was launched on Thursday, March 19, 2009. Please use the self-assessment tools provided on MakingHomeAffordable.gov to see if you are among the 7 to 9 million homeowners who may be able to benefit from Making Home Affordable. The President’s Plan was created to help millions of homeowners refinance or modify their mortgages to a payment that is affordable, both now and in the future.
Information for participating servicers and servicers interested in participating in the Home Affordable Modification Program can be found at http://www.hmpadmin.com. The Home Affordable Modification Program is designed to help as many as 3 to 4 million homeowners avoid preventable foreclosure by modifying loans to a level that is affordable for borrowers now and sustainable over the long term.
If you are behind on your mortgage payments, borrowing money to make your mortgage payments, or worried that you will fall behind because of job loss or other circumstances, there are steps you can take:
- First, contact the company that services your mortgage. The servicer is the company you send your monthly mortgage payment to, and it may or may not be the company where you first obtained the mortgage.
Most mortgage servicers want to help borrowers having difficulties. They can sometimes offer immediate solutions, and the sooner you contact the servicer with the details of your situation, the better the chances of a successful resolution.
You may also want to try a reputable consumer credit counseling agency that assists borrowers with mortgage difficulties. Counseling agencies usually have a lot of experience helping people with such problems. Many also have experience working with lenders and may be able to help start a productive discussion between you and your servicer.
- The Department of Housing and Urban Development (HUD) has comprehensive information for borrowers having difficulties with their mortgages on its Web site, including a complete list of HUD-approved counseling centers across the country.
HUD offers FHA mortgages through private lending agencies approved by the Federal Housing Agency (FHA). This may be a solution for some borrowers. If you think this could be a helpful option for you, check out the "refinance options" on the HUD site.
- Another more general source of helpful consumer information is the Federal Reserve system's Consumer Information site. There you can find the Federal Reserve’s “Mortgage Foreclosure Resources” listing.
Be Careful—
Scammers have already found ways to take advantage of people who are struggling
- Be cautious when working with any party promising to help fix your mortgage problems. HUD-certified counseling centers have helped thousands of people, but the nation’s mortgage crisis has also brought out some of the worst elements in the financial world. There are already numerous scams out there that can harm—not help—troubled borrowers.
If any person or organization tells you to stop making payments or should ask you to send your mortgage payment to them instead of to your servicer, be wary. You could end up in much worse trouble if you don’t make your payments, and your credit rating could be ruined because of it.
- Get information on how to avoid foreclosure rescue scams. The Office of the Comptroller of the Currency (OCC) has published a Consumer Advisory called OCC Consumer Tips for Avoiding Foreclosure Rescue Scams that can help you spot the signs that mean you may be dealing with a scammer.
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