Message from Attorney General Terry Goddard
Resources
Tips and Steps to Avoid Foreclosure and to Resolve Mortgage Difficulties
Related News/Information
File a Complaint
Message from Attorney General Terry Goddard
February 2008
The mortgage industry needs to reach out to more homeowners at risk of
foreclosure if the nation’s housing crisis is to be brought under control. While mortgage servicing companies have increased outreach efforts and shown more willingness to
modify home loans, a report issued by a Task Force of Attorneys General from 11 states, including Arizona, showed most seriously delinquent borrowers were not
undertaking any mitigation option. The task force was formed last summer to work with subprime mortgage loan servicers to reduce the number of foreclosures by encouraging loan modifications and other sustainable solutions.
The report found a very large gap between the number of homeowners needing assistance and the number who are getting any. Home delinquencies have been growing at a faster rate than loss mitigation efforts. I’m particularly concerned about getting help to homeowners who are doing all they can to avoid foreclosure.
Unfortunately some of these homeowners facing foreclosure were victims of, or even participants in, mortgage fraud or real-estate scams. If you believe you are a victim of fraud it is important to contact my office to file a consumer fraud complaint.
If you are a homeowner facing foreclosure it is important to contact your lender or a certified credit counselor as soon as possible. The following information can be helpful to link you with resources to find out more about your options and help save your home.
Terry Goddard
Attorney General
(Click here for a Printable Handout of this information)
 Hope Now Homeowners Hotline |
The HOPE NOW Homeowner’s Hotline is administered by the Homeownership Preservation Foundation, an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners.
|
 |
The US Department of Housing and Urban Development provides tips and steps to avoid foreclosure and to resolve mortgage difficulties.
|
 |
The Arizona Department of Housing provides referrals to homeownership counselors.
|
 Arizona Department of Financial Institutions |
If you think you are a victim of a foreclosure rescue scam, you should fill out and sign a formal written complaint with the Arizona Department of Financial Institutions (DFI).
|
 |
The "Lawyers Helping Homeowners" program calls upon volunteer lawyers to assist homeowners in working with their lenders to find appropriate financial arrangements to avoid foreclosure. This initiative is coordinated by the State Bar of Arizona, the Arizona Foundation for Law Related Education, and the Arizona Supreme Court. |
Tips and Steps to Avoid Foreclosure and to Resolve Mortgage Difficulties
(Source US Housing and Urban Development)
Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?
- Don't ignore the letters from your lender
- Contact your lender immediately
- Contact a HUD-approved Housing Counseling Agency
- Toll FREE 800.569.4287
- TTY 800.877.8339
If you are unable to make your mortgage payment:
1. Don't ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender.
The first notices you receive will 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.
4. Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
Arizona Department of Housing
www.housingaz.com
1110 W. Washington Suite 310
Phoenix, AZ 85007
602.771.1000
5. 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.
6. Contact a 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, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call 800.569.4287 or TTY 800.877.8339.
7. 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. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.
8. 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 don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies.
You don't 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 months mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.
10. Don't lose your house to foreclosure recovery scams!
If any firm claims it 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 become a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.
(2/8) Terry Goddard Says Mortgage Industry Needs to Do More to Reduce Home Foreclosures
Arizona Home Buyer's Bill of Rights
If you believe you have been the victim of consumer fraud, you should first contact the company in writing and specifically request the relief that you feel is appropriate. You may also file a complaint with the Attorney General's Office.
| Phoenix | Tucson |
OFFICE OF THE ATTORNEY GENERAL |
OFFICE OF THE ATTORNEY GENERAL |