Tips for avoiding foreclosure:

• Do not ignore the problem.  The further behind you become, the harder it will be to reinstate your loan and the more likely you lose your house.
• Contact your lender as soon as you realize you have a problem. Lenders do not want your house.  They have options to help borrowers through difficult financial times.
• Open and respond to all mail from your lender.  The first notices you will receive offer good information about foreclosure prevention options that can help you weather financial problems.  Later mail may include important notice of pending legal action.  Your failure to open the mail will not be an excuse in foreclosure court.
• Know your mortgage rights.  Find your loan documents and read them so you know what your lender may do if you can not make your payments.  Learn about foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
• Understand foreclosure prevention options.  Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the Internet at www.fha.gov/foreclosure/index.cfm and www.hud.gov/foreclosure/index.cfm.
• Contact HUD-approved housing counselor.  The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options recognize your finances and represent you in negotiations with your lender if you need assistance. Find a HUD-approved housing counselor near you by calling 800-569-4287 or visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.
• Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment - that you can eliminate.
• Use your assets.  Do you have assets -a second car, jewelry, a whole life insurance policy -that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts do not significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
• Avoid foreclosure prevention companies.  You do not need to pay fees for foreclosure prevention help - use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender.  While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.
• Do not lose your house to foreclosure recovery scams.  If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your home! Never sign a legal document without reading and understanding all the terms and getting professional advise from an attorney, a trusted real estate professional, or a HUD-approved housing counselor.  Additional tips can be found on Freddy Mac's "Don't Borrow Trouble" website: www.dontborrowtrouble.com/en/anti_predatory.html.