Foreclosure Prevention Tips

These steps may help prevent foreclosure in the case of a change in financial situation that leaves you struggling to make your monthly payments.

You may download our Foreclosure Prevention Tips, as well.

Talk to an NHS Housing Counselor

NeighborWorks Housing Solutions is a HUD-approved housing counseling agency and provides counseling to anyone in the southern MA area. Our counselors can help you:

  • Realistically assess your financial situation
  • Determine available options
  • Negotiate with your lender

Our counselors are knowledgeable on the various workout arrangements that lenders consider and can quickly identify the course of action that will make the most sense for you and your family’s situation. Your counselor can also call the lender with you, or on your behalf, to discuss a workout plan.

When you meet with a counselor before you are too far behind on your mortgage payments, you protect yourself from future credit problems. Your counselor will provide an analysis of your financial situation and help you determine a personal financial plan, which includes establishing a realistic and doable monthly budget plan ensuring you can meet all of your monthly expenses — including your mortgage payment.

Your counselor may also provide additional resources and programs that may be available to you in your local area.

Completely fill out this intake form BEFORE your counseling appointment so we may assist you in the best and quickest way possible.

woman making a phone call 2

Contact Your Lender as Soon as You Have a Problem!

Many people avoid calling their mortgage lenders when they first encounter financial trouble. There’s often discomfort, embarrassment, or the idea that if the lender learns of the financial struggle, they’ll rush to collection or foreclosure. However, the best approach is to CALL YOUR LENDER IMMEDIATELY and ask them to modify your loan so payments are affordable. 

Some lenders have “workout” options (a debt restructure plan such as Mortgage Modification, Reinstatement, Forbearance, and a Repayment Plan) to help you keep your home. Contact your mortgage lender as soon as you realize that you are unable to make your payments — the more behind you are in your mortgage payments, the harder it will be to stay in your home.

Lender Call: Be Prepared & What to Expect

Here are some additional tips for how to be prepared for your lender call and what to expect.

  • How to Find Your Lender & Contact Information
    Check the following sources for lender contact information.

    • Monthly mortgage billing statement
    • Payment coupon book
    • Lender List Search on the HUD website
  • Have This Information Ready
    • Your loan account number
    • A brief explanation of your circumstances
    • Recent income documents (pay stubs or benefit statements from social security, disability, unemployment, retirement or public assistance)
    • A complete list of household expenses

What Happens Next

Expect to have several phone conversations with your lender. Generally, your lender will mail you a “loan workout” package which will contain information, instructions, and the forms you’ll need to fill out. 


Your NHS counselor can and will guide you as you fill out the various needed forms. If you want to be considered for assistance, you must complete the forms and return them to your lender as quickly as possible. The completed package will be reviewed by your lender before solutions will be discussed with you.

Additional Tips

  • Do Not Ignore Mail from Your Lender
    If you do not initiate contact with your lender before you have a problem or the first month in which you cannot make a payment, your lender will try to contact you by mail and phone soon after a missed payment. 

It is very important to respond immediately. If your lender does not hear from you, they will likely begin legal action proceedings leading to foreclosure. Once they do, this will substantially increase the cost of bringing your mortgage loan current.
  • Prioritize Debts
    It is imperative and helpful for you to prioritize your bills and pay those most necessary for your family: food, utilities, and shelter. 

If your employment income has stopped or been reduced, first reduce or eliminate non-vital monthly expenses, examples: dining out, entertainment, cable and/or or telephone services. If that does not provide enough space in your income, consider using other financial resources you may have like a savings accounts or selling a second car. The idea is to take any responsible action you can to save cash.

For the unemployed, getting by will require a new, tightened budget. Failing to pay any of your debts can seriously affect your credit rating. However, if you stop making your mortgage payments, you could lose your home. Whenever possible, any income available after paying for food and utilities should be used to pay your monthly mortgage payments. 

Remember, if you need help reworking your budget, your NHS Foreclosure Prevention counselor is here for you!
  • Beware of Scams
    People in financial distress are a favorite target for financial predators. They find it easy to panic their targets into decisions that appear as solutions, but in fact, make the financial problems worse and increase the risk of losing your home. 

You may be asked for a fee upfront before they help you. You may be asked to sign your house over to them in return for paying your mortgage. You may be told that they can stop foreclosure proceedings. You may be asked to release sensitive personal or financial information over the phone. Do not give money to anyone other than your mortgage lender in the form of a payment. Do not sign the deed to your house over to anyone.

    

If an offer sounds too good to be true, it is.

    If you receive a call, notice, or letter in the mail that you don’t understand, contact us and we can help you figure out if it is a valid notice to which you must respond or if it is a scam attempt.

Learn more about loan scams and prevention. on the HUD website.

GET HELP—It All Starts Here

Completely fill out this form BEFORE your counseling appointment so we may assist you in the best and quickest way possible.