1. Contact your lender as soon as you realize that you have a problem.
- Don't ignore the problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.
2. Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the Internet.
3. 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. or call (800) 569-4287 or TTY (800) 877-8339.
4. 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 for free if you contact them.
5. 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.
- "Making Home Affordable" is a federal program to help homeowners avoid foreclosure.
- Does Fannie Mae or Freddie Mac own your mortgage?
- U. S. Dept. of Housing & Urban Development (Español) – find FREE counseling help and a list of HUD-certified counseling agencies
- "Lawyers Helping Homeowners" – find legal help
- Federal Reserve Bank – mortgage information and resource tools
- Resource Guide for Foreclosure Recovery is a tool to assist consumers in achieving stability following foreclosure
- Mortgage Payments Sending You Reeling? Here's What To Do (Español) - Federal Trade Commission has resources and helpful information.
Foreclosure Prevention – Information and Resources
- Avoiding Loan Modification and Foreclosure Scams
- Fannie Mae - "Know Your Options"
- Foreclosure Prevention Help-Line – call for FREE counseling help – 877.448.1211
- Arizona Foreclosure Prevention Task Force
- City of Phoenix Foreclosure Library
- OCC Consumer Tips for Avoiding Foreclosure Scams
- Federal Trade Commission – facts and tips on foreclosure “rescue” scams
- Federal Trade Commission – money matters resources
- Don’t Borrow Trouble – find resources and education materials in Pima County
If You Suspect a Scam, Contact:
- Arizona Attorney General’s Office
- Arizona Dept. of Financial Institutions
- Arizona Department of Real Estate
- Better Business Bureau
- Federal Trade Commission
Arizona law sets forth regulations for foreclosure consultants, including prohibiting foreclosure consultants from taking compensation in the form of a lien on the property or equity participation and prohibiting consultants from receiving payment until all contracted services are performed.
|Article 22||Foreclosure Consultants|
|44-1378.03||Foreclosure consulting contract|
|44-1378.04||Right of cancellation|
|44-1378.05||Homeowner action to recover damages|
|44-1378.06||Fraud or deceit against homeowner; classification|
|44-1378.08||Cumulative nature of penalties|
Federal Trade Commission
Federal Trade Commission (FTC) Mortgage Assistance Relief Services (MARS) Rule protecting homeowners from mortgage relief scams.
Consumer Financial Protection Bureau
Consumer Financial Protection Bureau (CFPB) is the newly established federal agency to provide consumers with the information they need to choose consumer financial products and services that are best for them.
Tenants in Foreclosed Homes