For most people, buying a home is the largest investment they ever will make. Protecting that investment, and your credit, is very important. It is essential to know how to avoid putting your home at risk, and what steps to take if you run into financial trouble.
Call your servicer and explain the situation. Your servicer is the company that processes your mortgage payment. You can find contact information for your servicer on your monthly billing statement or coupon booklet. Ask for help right away. The longer you wait, the fewer payment options you may have.
If you have a MaineHousing mortgage, additional assistance may be available. Information is available in the brochure below.
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The national non-profit Preservation Foundation provides free counseling to assist homeowners avoid foreclosure. Their toll free hotline is 888-995-HOPE.
Other options including calling a HUD approved housing counselor or contact Credit Counseling Services of Maine.
Housing counselors can help you to lower your costs, plan a budget, and make payment arrangements for your bills. A housing counselor can help you to:
- Review your financial situation, determine what options are available, and negotiate with a lender
- Call the lender on your behalf to discuss workout options on your loan;
- Determine which workout arrangements offered by the lender make the best sense for you;
- Explain the terms of any refinancing arrangement to you.
A counselor also can help you to interact with your servicer if you need it. If you decide to work with a housing counselor:
- Get the details of any plan to bring your payments up to date in writing;
- Talk to your servicer about any actions that would affect your mortgage;
- Sign documents only after they have been fully explained and you understand them;
- If you decide to sell your home to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact the Attorney General’s Consumer Protection Division for this type of information.
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Most mortgage lenders are trustworthy and provide a valuable service. But predatory lenders exist, and they may engage in lending practices that increase the chances a borrower will lose a home to foreclosure. Many of these predatory lending schemes are refinancing offers, often through the mail or on the telephone, to desperate homeowners who are behind in their payments. Be cautious of lenders who offer to refinance your home. If the lender does not clearly explain the terms and the costs of the loan, does not seem concerned about your ability to pay, or offers a higher interest rate or a rate that gets higher over time, the loan may not be in your best interest. If a deal sounds too good to be true, it probably is.
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