Foreclosure may occur, but it doesn’t have to. You can take action to save your home.
It is never too late to get help. By seeking help early, there is a greater chance of success in avoiding foreclosure. As soon as you anticipate problems in paying your mortgage payment, contact your mortgage servicer to explain your current financial situation. Many servicers are willing to work with you if you contact them immediately, because they understand that individuals and families can face temporary job loss, serious illness, or other major life events that can impact their ability to pay their mortgage. Ask if you can participate in a "work out" resolution or obtain a loan modification. Be honest with the loss mitigation staff about your situation so they can help you choose the best option.
Generally, a “work out” resolution involves resuming payments and arranging to pay the past-due amount over a short period of time. Sometimes, lenders will allow a "loan modification" which might lower your interest rate or extend the final due date of your loan — making your monthly payments lower.
In addition to contacting your mortgage servicer, you can call HelpLink at 2-1-1, where skilled, trained staff are available 24 hours a day to handle calls received on the foreclosure hotline. Staff will assess each call and make referrals to the appropriate agencies. To find out more about your payment options, take action immediately by calling or writing to your mortgage servicer’s Loss Mitigation Department to explain your situation.