I Need Help to Save My Home from Foreclosure

Kathleen Esposito
Foreclosure can be a lengthy process.

Many people find themselves saying, "I need help to save my home from foreclose," at one point or another in their lives. It could be due to an unexpected job loss, major medical expenses or another reason that is out of their control. It may be due to irresponsible debt management. Either way, the most important thing for them to do is act as soon as possible because there are resources out there that can help.

Contacting the Lender

Believe it or not, most mortgage lenders do not like to see homes go into foreclosure. It can cause them to lose profit on their investments and they have to spend both time and money finding a new buyer for the home. It's important for people facing foreclosure to contact their lenders and let them know they are having problems making the payments as soon as these problems occur. The company may be willing to renegotiate the payment plan to suit the mortgage holder's needs better.

Before calling the lender, the homeowner should have the following information handy:

  • The account number for the loan
  • A written statement of what the financial difficulties are
  • Recent pay stubs, unemployment checks, or other proof of income
  • An itemized list of current, unavoidable expenses

Note that this technique will not work in every situation, but it is always better than simply ignoring mortgage bills. It's best for people to contact the lender before that first missed payment, or at least after only missing one or two. It shows the lender that the homeowner is interested and engaged in the process. Thanks to all of the government sanctioned foreclosure help, this is more likely to work for those severely behind on payments than it was in the past.

Seeking Housing Counseling

Those who do not wish to contact their lenders or who have tried and are not getting a response may wish to contact a housing counseling agency and tell a representative, "I need help to save my home from foreclose." A counselor's job is to help the homeowner look at the options available and ultimately serve as a mediator between the person and the lender. The counselor can also refer the homeowner to other organizations that can offer assistance.

It's important for people to find a counseling agency that is approved by the Department of Housing and Urban Development (HUD). Unfortunately, there are a lot of agencies out there that are looking to cheat homeowners out of their money. To find an approved agency, call 800-569-4287 or go to HUD's website.

I Need Help to Save My Home From Foreclose:Ask about Project Lifeline

Project Lifeline is a government program that was created in 2008 in response to the sub-prime mortgage crisis. It is designed to help homeowners who are behind by more than 90 days in their payments and have a mortgage serviced by:

  • Bank of America
  • J.P. Morgan
  • Washington Mutual
  • Wells Fargo
  • Countrywide
  • Citigroup

Those eligible for the program can get a 30-day stay on their foreclosure proceedings and use that time to negotiate with the lenders on a solution. People with a foreclosure hearing that is less than one month away are not eligible, so early action is key.

Act Now

The most important thing for people to remember when looking to save a home from foreclosure is to not stop and wait; act now. Homeowners shouldn't worry about being embarrassed. Almost everyone goes through tough financial times at some point in their lives.

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I Need Help to Save My Home from Foreclosure