How to Get Subprime Mortgage Assistance

A conversation with a housing counselor should be your first step in seeking assistance for your subprime mortgage. Counselors approved by the U.S. Department of Housing and Urban Development (HUD) can help your work through various mortgage issues, including foreclosure prevention. Subprime mortgages are typically given to people who have less than prime credit. However, people with high and low credit scores are susceptible to financial setbacks, and a housing counselor will treat your subprime mortgage problem the same as any other mortgage issue.

Instructions

1

Visit the HUD website to find a housing counselor or call the agency at 800-569-4287. The website and interactive phone line will direct you to a HUD-approved housing counselor in your area offering free services.

2

Call the counselor. Set up an in-person appointment, if possible, or discuss your issues over the telephone. The counselor will ask questions to learn more about your overall financial situation and how it is impacting your subprime mortgage. Answer the counselor's questions about your credit, bills, employment and salary.

3

Ask the counselor how she can help you solve your problem. The counselors are trained by HUD in various foreclosure prevention strategies, and your counselor should be able to tell you how to approach your lender about your specific problem.

4

Seek other opinions. Contact a nonprofit Consumer Credit Counseling Services agency in your area. The CCCS agencies also offer free services and will work with you on a broad range of financial services, including your subprime mortgage. Another option is the nationwide nonprofit agency Hope Now, which specializes in foreclosure prevention. The organization maintains a free hotline staffed by HUD-approved counselors. Call Hope at 888-995-4673.

5

Contact your lender after consulting with counselors and learning about foreclosure prevention options including loan modifications to reduce your payments, or forbearance, which can greatly reduce or even suspend your payments for months while you recover from a hardship. There are other programs available as well. If you feel you need help ask your CCCS counselor to participate in the phone call with your lender. CCCS counselors often speak with creditors on behalf of consumers and can help everyone involved reach a workable solution.