Counselors

• Contact a HUD-certified foreclosure counselor immediately if you are unable to meet your monthly mortgage obligations. A foreclosure counselor can assess your situation to help you determine the best route to take in avoiding foreclosure. Counselors review your household expenses, bills, income and mortgage agreement before making a recommendation. If you plan to discuss your foreclosure with an attorney, a counselor can help you organize your paperwork to prepare for your meeting.
  
  

Making Home Affordable

• In February 2009, the Obama administration launched the Making Home Affordable program for homeowners. The Making Home Affordable program was a response to the housing crisis of 2008, where predatory lending was revealed to be at the root of hundreds of thousands of foreclosures. If you have a predatory loan, you may be eligible for assistance through the Home Affordable Refinance Program, which allows homeowners with a Fannie Mae or Freddie Mac loan to refinance to a lower interest rate or conventional mortgage terms without a credit check or home appraisal. The Home Affordable Loan Modification program aids homeowners by allowing them to permanently alter the terms of their mortgage usually through an extension of the loan term. You must undergo a trial period before your loan modification becomes permanent.
  
  

Advocacy Organizations

• Foreclosure counselors have information regarding national and local resources for homeowners seeking mortgage assistance. Local organizations may offer financial assistance to help you regain control over your household budget. For example, in 2010 the United Way administered a Fresh Start program that offered delinquent Georgia homeowners $3,000 to catch up on their mortgage payments. In addition, organizations like the Neighborhood Assistance Corporation of America (NACA) negotiate on behalf of homeowners who are unable to afford their monthly mortgage payments. In order to qualify for NACA's services, you must have a stable source of income.
  
  

Lender Programs

• When you fall behind on your mortgage payments, your lender should respond with options to remedy your mortgage. The lender may have its own mortgage assistance programs to help you avoid foreclosure. For example, lenders can authorize mortgage forbearance, which temporarily suspends or reduces your monthly mortgage payments. Forbearance is generally granted to homeowners experiencing temporary hardship, such as a short-term disability leave. Avoid this option if your mortgage payments are always unaffordable. To request information regarding your lender's mortgage assistance programs, submit a hardship letter detailing your financial circumstances to your lender as soon as your mortgage falls behind.