Government and nonprofit agencies can help homeowners avoid foreclosure. The Federal Trade Commission says you should avoid for-profit agencies that market themselves as "foreclosure rescue" experts. The FTC says the agencies often make promises that they cannot keep, while others simply scam consumers by taking upfront payments and never bothering to even contact the lender.
HUD
The U.S. Department of Housing and Urban Development (HUD) maintains a list of HUD-approved housing counselors located throughout the United States and Puerto Rico. The counselors can answer your questions, review your situation, suggest options, help you with your budget and prepare you for foreclosure prevention discussions with your lender. Services from HUD-approved counselors are usually free. Visit the HUD website (see Resources) to find a HUD-approved counselor in your area.
Housing Authorities
Most states have housing authorities that offer a variety of services, including help with foreclosure avoidance. Examples include the Michigan State Housing Development Authority, the Tennessee Housing Development Agency and the Ohio Housing Finance Agency. Some counties and cities have housing authorities as well. Find a housing authority in your state by contacting the customer service department for your lender. Another option is to contact a charitable organization such as the United Way or Urban League. Tell the representative that you are looking for a housing representative who can help with foreclosure prevention.
Homeownership Preservation Foundation
The Homeownership Preservation Foundation is a nonprofit organization supported by banks, mortgage companies, local governments and other organizations. It exsits to help people avoid foreclosure by qualifying for loan modification and other programs. Loan modification allows lenders to rework the terms of your loan to make the payments more affordable. Contact the foundation by calling 888-995-4673 or visit its "Hope Now" website (see Resources).
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