Join Our Mailing List
Email:
Foreclosure Prevention

Coping with Difficulty

When finances get tight, these steps can help you avoid foreclosure:

  1. Pay high priority bills first. Pay food, mortgage, and utilities first. Unsecured debt (such as credit cards) should be a low priority.
  2. Develop a spending plan. Know what money/income you have available and how much you need to meet your basic needs. Cut costs and try to increase income.
  3. Get help. HUD certified counseling agencies, such as the Rockford Area Affordable Housing Coalition, have counselors trained to assist you with your mortgage.
  4. Know your options. Mortgage companies have options available if you know what you are asking for. Request a workout package. If your mortgage company will not help you, see #3! BorrowSmart has a summary of the Illinois foreclosure process.
  5. Talk to your mortgage company. Many people seem to think that ignoring the mortgage company will make them go away. It usually means that your fees and penalties are increasing without you realizing it. Communicate regularly. Read everything they send to you.
  6. Save your money as though you are paying a mortgage. Mortgage companies will reject partial payments. Do not spend a returned check elsewhere, set it aside and try to arrange a repayment plan. You will be asked to pay some money up front and your returned check will be just what you need!
  7. Do not fall for a scam!! Foreclosures are public. Once a foreclosure suit has been filed, you will be flooded with “offers” to help. People facing foreclosure are often approached by predatory lenders who see an opportunity to take the few remaining dollars from someone in a desperate financial situation.
  8. Be willing to sell your home. Many people lose their homes because they are trying too hard to hold onto them. Placing your home on the market early will give you the best opportunity to sell it and move on. If you have little or no equity in the home, it is important to work with a real estate professional who understands pre-foreclosure (or short) sales.

The State of Illinois has passed the Mortgage Rescue Fraud Act, which goes into place on January 1, 2007. This law is designed to protect homeowners who have fallen behind on their mortgage from the wide range of scams that are currently being practiced.


If your mortgage is with one of the following lenders/servicers, these links will download the appropriate workout application. The workout application will allow you to apply for one of the options available to help you get back on track with your mortgage.


Other Web Resources