Many times foreclosure can be avoided if we act quickly enough. The foreclosure process will not begin until a mortgage loan is approximately three months delinquent. It is extremely important to contact the mortgage lender at the EARLIEST sign of difficulty. The options lenders have available to work with homeowners in default become more and more limited as time passes.

Following is a brief overview of steps you can take. Contact a local CCCS agency or the Department of Housing and Urban Development in your area for HUD approved counseling agencies and a more thorough explanation of the curing default options. Most CCCS agencies will be able to provide free counseling to help distressed homeowners analyze and select appropriate default options.

Step 1
Contact lender as soon as possible to explain situation and ask for remedies available.

Step 2
Seek default counseling from a HUD approved counseling agency.

Step 3
Prepare a proposal package to submit to your lender. This would include a hardship letter explaining the situation, including supporting documentation if available; financial statement or budget analysis; your action plan for bringing the loan current and how you plan to accomplish it.