Foreclosure Prevention and Loss Mitigation

If you are in danger of losing your home, familiarize yourself with the many options that may be available to you. As time passes, your options grow fewer, so you should act as quickly as possible.

Notify your lender as soon as you know your payment will be late and present your circumstances with a plan of action to your lender. Your lender may agree to give you some payment options in order to catch up.  If you need assistance with this step, you can contact us at toll free (877) 894-4663.

Mortgage Default Counseling
Mortgage Default Counselors can work with you to avoid foreclosure or provide assistance during the foreclosure process. Counselors can provide information on the foreclosure process and one-on-one assistance to identify resources, develop a household budget, or negotiate with lenders or servicers for re-payment strategies. Contact us for a referral to a local, non-profit mortgage default counselors at toll free (877) 894-4663. For a list of counseling agencies in your areas  Click here.

If you cannot make payments, some of your options may include:.

• Forbearance: The allowance of delayed payments for a short period of time with the understanding that another option will be used afterwards to bring the account balance current.
• Reinstatement: When you are behind in your payments but promise to pay a lump sum to bring payments current by a specific date.
• Repayment Plan: If your mortgage is past due, but you can now make payments, your lender may agree to let you catch up by adding a portion of the past due amount to each monthly payment until your account is current.
• Modify Your Mortgage: The lender can modify your mortgage to extend the length of the loan or take other steps to reduce your payment amount.
• Sell your Home: If you are unable to catch up on payments, your lender may allow you time to sell your home to avoid the foreclosure process.
• Deed in Lieu of Foreclosure: Your lender may allow you to give back the property and forgive the debt. Note that this option may still have a negative impact on your credit standings. The lender may require you to attempt to sell before a deed in lieu can take place. If there is more than one lien on your home, a deed in lieu may not be an option.

Don't be fooled .

• Avoid Scams: Be weary of a buyer who offers to pay off your mortgage or provide you a lump sum upon sale of the home. The buyer may also suggest you move out quickly and assign the deed to him/her. Signing over your deed may not relieve you from your obligation on your loan. Washington State Department of Financial Institutions website lists alerts on a regular basis. Click here for current alerts.
• Fee Based Counseling Agencies: There are non-profit counseling agencies that can assist you at no cost and you can also perform many of the services on your own. Do your research before paying anyone or signing documents with these agencies. For a complete list of  Housing Counseling agencies that provide foreclosure prevention counseling, pre-purchase counseling, and financial education, click here.

Local non-profit agencies that provide foreclosure prevention counseling.

• Click here for a list of agencies that can assist with mortgage default counseling and payment assistance. Payment assistance funding may be limited and you will need to meet the agency's eligibility criteria.

-Much of the content covered in this section of our website is information published to the web by NeighborWorks, www.nw.org.