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.
Finding a credit counselor
You can find a credit counseling agency in your local phone book or by contacting the U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287 on weekdays between 9:00 a.m. and 5:00 p.m. Eastern time. You can find a list of HUD-approved agencies on their Web site.
Know what questions to ask to make sure you find a reputable credit counselor.
Getting debt advice
Talk to a housing counselor at the HOPE hotline (888-995-HOPE) to understand your financial situation and what steps you can take to improve it.