You Can Avoid Foreclosure and Keep Your Home: “Steps to take when you can’t pay your mortgage: – (Top) Contact your lender as soon as you have a problem Talk to a housing counselor Prioritize your debts Explore loan workout solutions with your lender If keeping your home is not an option Beware of predatory lending schemes 1. Contact your lender as soon as you have a problem – (Top) Many people avoid calling lenders about money troubles because we: o Feel embarrassed discussing money problems with others o Believe that if lenders know we are in trouble, they will automatically rush to a collection agency or foreclosure (seize property for failure to pay a mortgage debt) But lenders want to help borrowers keep their homes because: o Foreclosure is expensive for lenders, mortgage insurers and investors o HUD and private mortgage insurance companies and investors like Freddie Mac and Fannie Mae require lenders to work aggressively to help borrowers facing money problems Lenders have workout options (choices) to help you and: o These options work best when your loan is only one or two payments behind o The farther behind you are on your payments, the fewer options are”