Working With Your Lender to Stop Foreclosure

Get Help - Finances and Legal Matters

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When you call your lender, be sure to have your account information handy and be ready to give a summary of the financial problems you are having. You should also have recent income statements and your household budget with you.

Be prepared for more than one conversation. Your lender may require that you complete a "loan work-out" package – you may not be eligible for help without it, so complete it as soon as you receive it.

Questions to ask:

  • How much time is the lender willing to give you to complete a work-out?
  • What are your obligations under the work-out package?
  • What are the specifics? Be sure to ask what is due and when.
  • Will a foreclosure sale of your property be put on hold while your lender looks at the possibility of a work-out package?

Visit the Mortgage Bankers Association's Foreclosure Prevention Resource Center for advice on calling your lender for assistance.

Preparing for Your Conversation

Be ready to provide a short explanation of why you are unable to make your mortgage payment. Did someone lose a job? Is there a medical emergency? Are you current on your loan but have not been able to refinance into better terms?

You’ll also need to provide your servicer with important information about your property, income, and debt obligations.

Being prepared for this conversation will help your servicer understand your case and see if you qualify for a loan modification or other mortgage workout programs.

If you need assistance and cannot reach your servicer, you can contact one of the local HUD approved counseling agencies in your area.

Now that you have read about Working With Your Lender to Stop Foreclosure, may we suggest that you take the next step and check out Do's and Don'ts of Foreclosure. It is important to us that we are able to help people as they recover and prosper after job loss, so please contact us with suggestions, corrections, and even your personal experiences. If you found this article or video to be helpful, we'd love for you to share it with a friend. Also, be sure to check out all of the amazing resources for your career transition in the Book Store!

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