Eight Steps that Could Help
Everyone has money problems at one time or another. How you handle your money problems is the key to remaining out of trouble and keeping your most valuable asset: your home. Neighborhood Development Corporation of Grove Hall (NDCGH) Foreclosure Prevention program can assist you with developing an action plan and identifying workout options to avoid foreclosure.

Take a few minutes to read the following tips. Give us a call today and rest tomorrow.

Tip #1 – If you are experiencing financial difficulties, examine your budget, cut down your expenses or increase your income

Highest priorities should be food, mortgage payments, utilities, and essential transportation. An alternative is to look at ways to increase your income.

Tip #2 – Talk to your mortgage company, see if a temporary or permanent change to your mortgage terms can be arranged

A change in mortgage terms is called a workout. This is often the best solution to financial difficulties. Workouts allow you to get your mortgage payments back on track. There are different types of workouts; loan modifications; write down of interest and penalty charges; deferral of payments; adjustment of rates and terms. You will have to send the mortgage company work sheets which set out your monthly income and expenses as well as supporting documents. Not all workout proposals will be accepted.

Tip #3 – Pay your mortgage after you've paid for food and utilities

The mortgage company can take your home, while other creditors can not.

Tip #4 – Make partial mortgage payments. If the mortgage company will not accept partial payment, save the payment

Your mortgage company has the right to refuse partial payments. If your mortgage company refuses partial payment, put the money aside. Don’t use it to pay other bills. Use the money to negotiate with the mortgage company.

Tip #5 – Refinancing options

If you have equity in your home, refinancing may be an option to foreclosure. There are many loan programs which can reduce or evaluate your options carefully. Avoid high rate loans and consolidating other substantial debts together with your existing mortgage.

Tip #6 – Sell before foreclosure

Selling before foreclosure will almost always get a better price. You can list your house as well as pursue other options. However, if you owe more than the home is worth you will need to get the mortgage company’s permission to sell.

Tip #7 – Consider legal help

Early legal intervention can help prevent foreclosure. Chapter 13 and Chapter 7 are a couple of options. Chapter 7 delays and will not prevent foreclosure. Chapter 13 allows you time to reorganize and prevents the mortgage company from foreclosing on your home. Filing for Chapter 7 or 13 will have adverse effect on your credit, so investigate your legal options carefully. Avoid foreclosure scams. As always, make sure you use a reputable professional. Ask family or friends for recommendations or call a lawyer referral service. Ask for an attorney who handles foreclosure defense and bankruptcy.

Tip #8 – Get help right away

If you’re behind on your mortgage payments, don’t wait. Get help right away. Talk to your mortgage company. Let them know you are having financial difficulties and that you would like to discuss workout options. Remember, not all workout options are accepted and you will have to provide the bank with supporting documents. However, it will at least give you an opportunity to financially get back on your feet without losing your home.

For more information on Neighborhood Development Corporation of Grove Hall Foreclosure Prevention Program, call 617-445-2284.