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What Are My Options If I Fall Behind on My FHA Loan
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 You have options if you are late on your FHA Home Loan mortgage payment or you are heading there soon. Your first action should be to call your lender. Your lender is not bad. All they want is to be communicated with. Chances are, if you are falling behind on your FHA loan, it is not because of the problems that are going on in the rest of the mortgage industry with radically adjusting ARM loans etc. Probably you have had a financial hardship like being laid off, or a sudden drop in pay, or you were injured and couldn't work, you had a sudden illness and have fallen behind. FHA understands that unexpected things happen to us in life and has many solutions to help avoid a foreclosure.
Call Your Lender or FHA Immediately
One thing to always remember about your situation is that if you keep it a secret then you cannot get help. Mortgage lenders, HUD and FHA, are not interested in owning your home and being in the real estate business. They want to work things out with you. But, you have to be the one to start the action. FHA and HUD and your mortgage lender does not know your situation unless you tell them. This might seem simple, but why would I be saying this?
I am saying this because falling behind on a mortgage payment is for some people a difficult thing to admit. Losing one's home is even worse - no matter what the reason. There is something psychologically wrong with having a money crunch even it is associated with: a loss of job, a decrease in hours, going to a fixed income such as social security and retirement pay, loss of a household income because of a divorce or breakup, injury, death of a family member or spouse, or illness.
Financial Hardship - There Is Foreclosure Help
If you find yourself facing financial hardship because of any of these reasons or something similar but not mentioned, then your first step is to assess where you are right now. Get a clear picture of your monthly bills and your monthly income. The best way to do this is to write it down. Once it is on paper you will be able to see whether or not there is anything that you can cut out that is not necessary. Also, if you reach out to a HUD housing counselor they will be asking you for this information anyway. So start with itemizing all of your income and expenses at a monthly level.
Immediate Steps To Take If You Fall Behind On Your Mortgage
- Assess your finances and prioritize your debts
- Don't move out and keep your home looking good
- Call your mortgage lender now
- Gather up all of your financial documents like pay stubs, bank statements, mortgage statements, recent home appraisals, your original loan paperwork
- Do not avoid your lender's phone calls or mail
- Be on the lookout for foreclosure recovery scams
Special FHA and HUD Programs to Help Avoid Foreclosure
- Call a housing counselor if you have a FHA or VA mortgage at 800-569-4287 or go to: Find a Housing Counselor on Hud.Gov. If you call your lender and do not get anywhere with them, call the FHA Loss Mitigation Center at 888-297-8685.
- Explore any forebearance or loan workout options that your lender might have Ask your lender about a mortgage modification. This option could extend the terms of your loan or perhaps even allow a refinance to payoff debt following financial problems that you have recovered from. There are some special conditions apply about your net income. Check with your lender.
- You may sell your property in a pre-foreclosure sale, or a short sale. Another option might be a Deed-In-Lieu of Foreclosure. This option allows you to "return" your home to the lender, like returning something you bought to a store. This will stop a foreclosure process, but it won't save your home, and it could have some negative effects on your credit report.
- HUD may be able to arrange for a special interest free loan which would be issued to help you catch your mortgage payments up if you fall behind.
If you think the mortgage company who got you the loan did something wrong, don't hesitate to pick up the phone and get in touch with a real estate attorney. Most of them will do some sort of free consultation.
The information presented here might not be exhaustive, but it will help most people who are behind on their FHA mortgage. If you don't know where else to turn, call your lender and then call FHA.
Article by Dale Stouffer, Mortgage Broker. Dale has a been a mortgage broker since 1996. This Article is designed to be of general interest and should not be considered legal advice. The specific information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.
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