Foreclosure Defense/Fight Foreclosure information compiled by Florida Law Attorney Dania Fernandez

Common Questions About Avoiding Foreclosure

If you don't pay your mortgage, foreclosure may occur. This means your lender can legally repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued, meaning you would not only lose your home, you also would owe HUD money.

Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if at all possible.

If you cannot pay your mortgage, take the following steps:

• Look at your monthly mortgage coupons or billing statements for the lender's name and contact information. You should also know what kind of mortgage you have. Look on the original mortgage documents or call your mortgage lender.
• Do not ignore letters from your lender. If you are having problems making your payments, call or write to your lender's loss mitigation department immediately. Explain your situation. Be prepared to provide financial information, such as your monthly income and expenses. Without this information, they may not be able to help.
• Stay in your home for now. You may not qualify for assistance if you abandon your property. But talk with your lender about your particular situation and the options available to you.
• Contact a HUD-approved foreclosure housing counseling agency. Call toll free 1-800-569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources. They have information on services and programs offered by government agencies and private and community organizations that might be able to help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.

What precautions can I take?

These precautions can help you avoid being "taken" by a scam artist:

• Don't sign any papers you don't fully understand.
• Make sure you get all "promises" in writing.
• Beware of any sales contract that assumes the loan where you are not formally released from liability (responsibility) for your mortgage debt.
• Check with a lawyer or your mortgage company before entering into any deal involving your home.

If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information.

Will I be responsible for any out-of-pocket expenses if I am approved for a workout option?

You may have to pay expenses such as recording fees for a loan modification. Because every situation is different, contact your lender for more information. But, if a lender has no contact with you and has to start foreclosure, you may have to pay very high legal fees. To avoid this, call your lender as soon as you realize you might have trouble.

Article Source: http://portal.hud.gov/portal/page?_pageid=73,1827476&_dad=portal&_schema=PORTAL »

Published by fight foreclosure Florida law attorney Dania Fernandez • To schedule a no charge, no obligation consultation to fight foreclosure in Florida contact Dania Fernandez now at FloridaLawAttorney.com