Act quickly. Call or write to your lender immediately. Be prepared to explain your situation and provide detailed financial documentation.

For FHA Loans

To qualify for FHA assistance, you must continue living in the home. Available Loss Mitigation programs include:

• Special Forbearance: A revised repayment plan that temporarily reduces or suspends payments due to involuntary income loss.
• Mortgage Modification: Refinancing or extending the loan term to reduce monthly payments.
• Partial Claim: An interest-free loan from HUD to bring your mortgage current.
• Pre-foreclosure Sale: Selling the property to pay off the mortgage and avoid a foreclosure mark on your credit.
• Deed-in-lieu of Foreclosure: Voluntarily "giving back" the property to the lender to avoid the legal costs and time of foreclosure.

Uncooperative lender? Call the FHA Loss Mitigation Center at 1-888-297-8685.

For Conventional Loans

Request a "workout packet" from your lender. They will follow guidelines set by the owner of your loan (likely Fannie Mae or Freddie Mac).

• Fannie Mae: Works exclusively through your lender to determine your eligibility.
• Freddie Mac: Generally works with your servicer, but offers a borrower help line if issues arise: ?? 1-800-FREDDIE.

Avoid Scams

Beware of predatory actors during this process:

• Equity Skimming: Never sign over your deed to a "buyer" promising to pay the mortgage for you.
• Phony Counseling: Never pay for foreclosure counseling; HUD-approved agencies provide this for free.
• Signature Safety: Never sign documents you do not fully understand.