Contact your lender or servicer immediately if you’re having trouble paying your mortgage or you have received a foreclosure notice. You may be able to negotiate a new repayment schedule. Lenders generally don’t want to foreclose; it costs them money.
Contact a credit counselor through the Homeownership Preservation Foundation (HPF), a nonprofit organization that operates a national 24/7 toll-free hotline (1.888.995.HOPE) with free, bilingual, personalized assistance to help homeowners avoid foreclosure. HPF is a member of the HOPE NOW Alliance of mortgage servicers, mortgage market participants and counselors. More information about HOPE NOW is at www.995hope.org. Specifically, you should reach out to one of the wonderful nonprofit agencies that provides housing counseling at low or no cost. Click here for a list of housing counselors nationwide. You can search within your state.
Any and all communications from your lender
Foreclosure notices and/or court or sheriff's sale complaints
Your two most recent mortgage statements
Your homeowner's insurance policy if your pay this directly
Two months worth of pay-stubs
Two most recent tax returns for everyone listed on the mortgage
All bank account statements for the previous two 2 months
Proof of any other income (child support, alimony, SSI, disability, rental income, etc.)
It may not be possible to restructure your loan or reduce your payments. It is possible to get creative and think outside of the box. Can you work an extra shift for a season at work? Can you pick up extra money with a hobby or a talent by tutoring? Can you rent a room to someone who needs a place to stay? Can you downsize to a single vehicle? If raising your income is impossible, perhaps you need to explore the possiblity of a short sale with your lender.
