MORTGAGE LOAN COMPLIANCE®

In a recent study of Mortgage Defaults the most frequently cited causes:

36% Curtailment of Income

19% Excessive Obligations

8% Unemployment

6% Illness of Principal Mortgagor or family member

3% Marital Difficulties

Whatever the cause if your mortgage is in default or heading that way the best advice to avoid foreclosure is to talk to your lender. If necessary, ask your lender for a forbearance. A forbearance is an agreement to allow a short reprieve from payments because of a particular hardship (usually 1-3 months). The payments are most often added to the end of the term of the note. Be advised that your lender is under no obligation to agree to this, but you will never know unless you ask.

Alternatively, ask to make arrangements for repayment. Most lenders are willing to make payment arrangements to avoid incurring legal fees and expenses associated with foreclosure. If you are unable to make arrangements with your lender, your only option may be the legal process.

The rights of the lenders and borrowers vary from state to state. Talk with a HUD approved consumer counseling agency or a Local attorney to see what options are available for your situation. You may also want to consider an audit of your mortgage to ensure federal, state, and local disclosure and financing laws were not broken when your loan was originated.

Beware of any company or person that tells you not to contact your lender or that they can “stop foreclosure.” Foreclosure is a legal process of taking your home back and needs competent legal attention. Consumer Advocate websites such as www.naca.net can provide a list of attorneys nationwide that deal with various types of real estate transactions from broker and lender fraud, foreclosure rescue scams, to foreclosure defense. If you were a victim of a Foreclosure Rescue Scam contact your Local FBI office and your states Attorney General.