Free Foreclosure Help

Facing foreclosure or potential foreclosure? The help you should seek first is free foreclosure help. This is very important because there are predators out there willing to sink to the bottom of life and suck the last dime out of your pocket at a time when you need help the most. If you are in trouble with your home mortgage- here are some practicle tips to help you as you are going through the process.

The first thing- Don't ignore the problem. No matter how painful this is, ignoring it is only going to make it worse.

Contact a HUD approved counseling agency as soon as possible. Here is a link to the counseling program. They have HUD approved counselors and don't charge for the service. (You should not pay for this service). President Obama's loan modification has been changed too (more later on this)

Here are some things to know-

• Know the Foreclosure Time line- the time line and foreclosure procedure will be different for you if you have a "Deed of Trust" (most common) or a "Mortgage". If you don't know, look at your loan paperwork. You should see a document in there with one of these titles. Most people refer to all loans on homes as "mortgages" when in reality, most states now do Deeds of Trust due to avoiding a court proceeding for foreclose. Most will refer to your "mortgage payment"- this is just your monthly loan payment, but it may not actually be a "mortgage", it is probably a "deed of trust" (I know this is confusing, so you will just have to trust that this is how it is).
• Take action as soon as you see you will be, or are in trouble. The longer you wait, the less options are available to you. It will also become harder to negotiate with your Lender.. The time involved to get a modification can be several months. If you are now behind- the clock is ticking. Don't wait.
  
• Know your rights
• Document every phone call- including who you talked to, the date and time of call, what number you called, what department you are speaking to.
• Document every piece of written correspondence
• Open all your mail from the Lender and respond to it
  
• Look into all foreclosure prevention options
• Starting today- prioritize your spending- make a detailed budget of everything you spend
• Your Lender may ask you to explain all your expenditures
• Don't argue with your Lender. Even if you think they are complete idiots! If they ask for something you have already sent...just send it again.
• Don't avoid phone calls from your Lender
• When speaking to your Lender- have at least 45 minutes for the phone call.
• There are only a few departments that can help you- make sure you know who you are talking to and that they are in the correct department. Here are the most common:
  

1. Loss Mitigation
2. Home Retention
3. Loan Workout
4. Loan Modification

If you reach customer service, the loan department, collections, or similar departments- they can't help you. Ask to be transferred to one of the above departments or get the phone number to call the correct department. Note all phone numbers and extensions for later reference.

What to expect when you call your Lender:

• Lenders are swamped with calls.
• You will probably experience being on hold for a long time.
• You may get cut off.
• You may get into a phone tree that is just a wild goose chase.
• You may call the number for your Lender only to discover it is hooked to a fax machine.
• You may only get a voice mail.
• You may reach someone who speaks poor English or has a very heavy accent --many lenders are outsourcing call centers.
• You may have to do some research to find a phone number for your Lender
• Start with the number on your mortgage bill you get every month
  

What to have in your possession- This will take some time and work on your part:

Make 2 copies of all the following and keep the originals in a separate file for your easy access- Never send originals. You may have to send copies again and again so it is best to know where everything is.

• The last 2 years of tax returns. This includes all schedules.
• W-2 for the last 2 years
• Profit and Loss statements if self employed for the last two years.
• Profit and Loss statement for the current quarter you are in if self employed
  
• The last 2 months of most recent bank statements. Be sure to include ALL pages even if one is blank- also Front and back if there is printing on the back.
• Two most recent consecutive months of pay stubs from your employer
• Other proof of income from any other source (this includes retirement, disability, unemployment, child support, alimony, etc.)
  
• Hardship letter
• Most recent copy of your Mortgage bill
• Copy of each of your most recent Utility bills (gas, electric, water, cable, DSL, phone, trash, sewer)
  
• Copy of your property tax bill
• Copy of your homeowners insurance showing the annual amount
• Copies of any 401k, Keogh, Stocks, or other asset information
• .Make a list of all your monthly expenses. Know your account numbers. Know your minimum payments (for credit cards). Know your balance.

I know you must be feeling very overwhelmed. This can be an emotional time for you. Most people who are having trouble paying for a mortgage are also experiencing other life situations too: divorce, death, job loss, illness, etc. To face losing your home at the same time can make you feel like the bottom has dropped out of your world and you are in a spinning cyclone of pain. This can be a time of extreme stress no matter what the details.

Don't be afraid or embarrassed to talk about your problem. Remember- you are not alone. You will survive. There will be changes in your future. These are the times to try and tackle the day in front of you, don't think of all the possibilities of problems ahead, OK?

Just get your paperwork together and start the war! Or, if you want to walk away- know how to do it in a way that is going to be least damaging. Patience, persistence, and a level head are really important in times like these.

I will continue with more help on how to write a hardship letter, what the foreclosure time line is, more helpful tips to get you through the process. So keep checking back and remember:

Tomorrow is a new day- full of new possibilities- one of those tomorrows will bring a smile to your heart!

If you found this article helpful- please give it a thumbs up with our thanks! Also- in the comments- if you have questions you want answers to- i will try and address those for you OK?**

Free Foreclosure Help part 2- coming soon!

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Part Two Here- FREE FORECLOSURE HELP | links and Info

Update 09/10/09

** The information given here is from a liscensed Real Estate Agent but is not to be considered as tax advice or legal advice.  You will want to consult with the proper autority for that.

Stop Foreclosure Now and Free Foreclosure Help will be updated as new information becomes available.