HUD Articles

Over the years, Gibbs Realty and Auction Co., Inc. has specialized in listing, marketing and selling government owned and bank owned properties. It has been a blessing to be able to offer affordable housing  and to work with and help buyers become homeowners while holding homeowner education events and seminars to help prevent  foreclosure. But we also see the devastation and loss a foreclosure can cause.

It is very humbling to realize how quickly circumstances can change for any of us at any time, sometimes through no fault of our own.

If a foreclosure can be prevented, it is a win–win situation for both the homeowner and the bank. The key is communication. I ran across this article on the MakingHomeAffordable.gov website and wanted to share it.

Darrell and Wendy Gibbs

Interacting With Your Mortgage Company and Housing Counselor

When you reach out to your mortgage company or lender to explore options to help you pay your mortgage, a few things you can expect during the process are:

• Your mortgage company will evaluate your income, debt, and hardship in order to determine your eligibility.
• You will likely be required to provide documentation.
• The mortgage company might request that you use other housing related resources i.e. housing counselors and local housing counseling agencies.

Interacting with Housing Counselors

Many mortgage companies agree to put the foreclosure process on hold during modification negotiations or while you are exploring an appropriate solution for the delinquency or default on your mortgage. During the foreclosure counseling session, the housing counselor will likely:

• Take a look at your current financial situation
• Help you take a hard look at your current spending
• Help you develop a budget that will determine the maximum funds available towards your mortgage payments
• Explore the reasons for the delinquency or default, and document them (these reasons may serve as the basis for a hardship letter)
• Review the options available to you and help determine the best solution for your particular situation

You can expect the housing counselor to be absolutely honest. Consider this type of honest feedback to be a benefit as a failed solution may leave you in an even worse position.

Together you and the housing counselor will develop an action plan that will outline your options as well as the next steps.

Speak with a housing counselor now—CALL 888-995-HOPE (4673).

Tips to Avoid Foreclosure:

If you are unable to make your mortgage payment:

1. DON’T IGNORE THE PROBLEM.

The longer you wait to get help, the harder it may be to get assistance from your mortgage company or a housing counselor.

2. CONTACT A HUD-APPROVED HOUSING COUNSELING AGENCY.

A housing counselor can help you understand the law and your options, organize your finances and represent you in negotiations with your servicer if you need assistance.

3. OPEN AND RESPOND TO ALL MAIL AND ANSWER PHONE CALLS FROM YOUR MORTGAGE COMPANY.

The notices you receive may offer information about foreclosure prevention options and important notices of pending legal actions. Your failure to open this correspondence will not be an excuse to prevent the foreclosure process.

4. PRIORITIZE YOUR SPENDING.

If keeping your house is your first priority, review your finances to see where you can cut spending. Take any responsible action that will save cash.

5. KEEP YOUR OPTIONS OPEN.

The sooner you reach out for help, the more options you have.

Always beware of mortgage modification scams!

If you are struggling with your mortgage, you may have received information by mail or telephone with promises of a “quick-fix” or “easy solutions” to your mortgage problem. In many cases, scammers will even create letters or advertisements to appear that it is from your mortgage company. If you receive a call or offer in the mail, call your mortgage company using the phone number on your mortgage statement, and ask if they sent you such a communication.