To stop a foreclosure

If you can’t pay, call—and do it as soon as you sense a problem.
You’ve got a better chance of working out a repayment plan if you aren’t
buried under months of unpaid bills.
? Answer any mail from your lender. Early letters can offer options that
help avoid foreclosure. Those that come later won’t. (And saying you
didn’t check your mail won’t help in court.)
? Get an expert on your side. You can get advice on avoiding foreclosure
from a housing counselor approved by the U.S. Department of Housing
and Urban Development. Search for one locally at hud.gov/counseling or
call 800-569-4287.
? Build a file. Collect pay stubs, layoff notices, medical bills and any
other papers that document income or temporary lack of income. It may
help justify changes to your loan.
? Make copies of all documents you provide to the lender while making
your case. In the rush of troubled borrowers, papers can get lost.
?Deal with the lender’s loss mitigation department. That’s where you’ll find people with the power and the motivation to help.
? Ask the lender to waive prepayment penalties for refinancing. Some will consider doing so if it results in the loan being paid off, usually preferable
to another default. (A foreclosure can cost a lender up to $50,000.)
? Do not work with anyone who asks you to sign a “quitclaim deed.” Such
a document hands over ownership of your home. If in doubt, review
any offers of assistance with a HUDcertified housing counselor.