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Homeowners with mortgages who are struggling to pay your bills may get help from one or more of these sources. Do not let your credit or your family suffer!
Our National Association of REALTORS® has up-to-date information about the federal government’s response to COVID-19. Visit the Coronavirus Resources for Property Owners section of WWW.NAR.REALTOR/CORONAVIRUS for details about how federal agencies, lenders & bank regulators are working to help to homeowners.
Option 1: Talk to your lender. Your lender may be willing to work with you to set up a new payment plan that better suits your needs. It’s easier to negotiate before you get too far behind, so don’t delay if you’re already struggling.
Option 2: Talk with a housing counselor. A professional housing counselor can help you work out a budget and find ways to manage your mortgage payments. The federal Consumer Financial Protection Bureau can connect you with free and reputable housing counselors. Go to www.consumerfinance.gov/mortgagehelp.
Option 3: Talk with a credit counselor. A good way to locate a reputable credit counselor is through the National Foundation for Credit Counseling at www.nfcc. org. Its members are nonprofit counseling agencies. Seek out several in your area and look for someone who will take the time to sit and talk with you one-on-one.
Option 4: Explore government programs. Following the housing bust, the federal government created the Making Home Affordable Program, which helps eligible borrowers modify or refinance their loans. Visit www.makinghomeaffordable.gov or call the Homeowner’s HOPE Hotline toll-free at 1-888-995-HOPE (4673) to learn about the programs and speak with a housing counselor, who can explain eligibility requirements and identify the right solution for your family.
Option 5: Look for a new loan. If you’re not eligible for the federal government program, check with reputable lenders to see if there’s a way to replace your loan. You may have an adjustable-rate mortgage that you can replace with a fixedinterest loan. The payments may be higher, but you’ll be glad you locked in a fixed payment. Also ask if you are eligible for a Federal Housing Authority (FHA) insured loan, which comes with more foreclosure protection. You can learn more about FHA loans at www.hud.gov/buying/loans.cfm.
Watch Out for Scams - NeighborWorks® America runs a national education campaign to help homeowners protect themselves against loan modification scams, find trusted help and report illegal activity to authorities. Visit www.loanscamalert.org to learn more. There are all sorts of foreclosure scams. Some scammers charge fees to make calls and do paperwork that you could simply do yourself. Others offer bogus lease-buyback scams, in which homeowners are led to believe they can sign their title over but stay in the house as renters and then eventually buy back their home. The terms of these deals are often so burdensome that the buyback is out of reach. Homeowners caught in these swindles are eventually evicted, and the scam artist walks off with most or all of the home’s equity. To avoid scams and other problems, here are some important mortgage safety tips:
• Never deal with anyone who contacts you with offers to help if you are already in foreclosure. Ignore those roadside posters that say “We buy homes!” or “Save Your Credit.”
• Never sign any documents related to your home—or add a co-owner to your deed—without first getting advice from an independent source you trust, like a legal services attorney or community counseling service.
• Be sure you thoroughly understand any document you are asked to sign. Don’t rely on what someone says the document means. Get all promises in writing, get copies of everything you sign, and never leave any blanks in the document.
• Check with your state department of housing or licensing to ensure your loan agent is licensed or registered and authorized to sell mortgages in your state. Find contact information through the National Council of State Housing Agencies at www.ncsha.org/ housing-help.