HUD offers these tips: becoming informed about your mortgage rights, seeking assistance through loss mitigation, and reorganizing your payment priorities.

Your Rights

If you consult the paperwork that you signed when you purchased your home loan, you can read about your legal rights under the terms of your mortgage. Look for a document related to disclosure, the information that the state requires the lender to give to all customers. You may also receive some important information in the mail from the lender which may include your mortgage rights. The next resource for understanding your rights is the local or state housing agency. Track down their contact information online or in the phone book.

Assistance from Loss Mitigation

The government offers important information about foreclosure prevention on the HUD web site. Read these suggestions as well as the suggestions provided to you by your lender. The more resources that you can learn about and take advantage of, the better chance you will have of staving off foreclosure. If you just wait for the end result of losing your home and do nothing, then that will happen.

Reorganize Your Budget

This step is very personal to you and your family budget. Only you and your spouse know your most essential expenses. You know where to trim the budget, how to reduce spending, and how to liquidate your reserves if you really want to keep making your mortgage payment. Reserves include: savings, retirement savings, and bonds. You may also find out that refinancing your mortgage for a lower monthly payment will get you out of this problem. It’s worth a trip down to your lender’s loan officer to find out if the bank has any refinancing options for you.