Help For Homeowners
If you are having trouble making your mortgage payments, have already fallen behind or are in default or foreclosure, you may feel scared, ashamed or overwhelmed. It is very important that you act quickly to communicate your situation clearly to your lender and reach out for the help you need. The longer you wait, the fewer options you may have to save your home or avoid foreclosure. Here are some tips on the steps to take if you find yourself in this situation:
Contact Your Lender or Loan Servicer Immediately
It is crucial that you contact your lender or loan servicer as soon as you realize that you are unable to make a payment. This is a crucial first step in addressing your situation and identifying possible solutions. It is very important that you respond to mail and phone calls from your lender. If your lender does not hear from you, they are more likely to start legal action leading to foreclosure. Provide any information requested by your lender or servicer quickly and keep records and copies of everything.
Know what may happen if you fall behind: A timeline
When you fall behind on your mortgage payments you can expect certain actions by your lender.Know your options
If you are having trouble making your mortgage payments there may be options available that can help you avoid foreclosure.Know your rights
When it comes to your home and your mortgage you have certain rights under the law.
Contact a Not-For-Profit Housing Counselor
Housing counselors that handle foreclosure related issues can give you advice on your options and resources at little or no cost. They may also be able to negotiate with your lender and help you find free legal services in your area.
To find an approved not-for-profit housing counselor in your area visit DHCR.
If you live in New York City, you can also call the Center for New York City Neighborhoods (CNYCN) at 311 or 646-786-0888. CNYCN partners with more than 50 agencies and coordinates foreclosure prevention and intervention services in all five boroughs. CNYCN can help you find the right services for your needs.
Homeowners seeking counseling or advice can also call the 24-hour toll free HOPE NOW HOTLINE at 888-995-HOPE (888-995-4673). HOPE NOW is an alliance of HUD approved counseling agents, servicers, investors and mortgage lenders that provide free foreclosure prevention assistance.
Seek Legal Assistance
Contact a lawyer and review your mortgage documents. Make sure your loan is not in violation of any laws. If you do not have a lawyer, call the New York State Bar Association's Lawyer Referral Program at (800) 342-3661 to find one. If you do not think you can afford a lawyer call us for assistance in locating free legal services in your area, call the Legal Aid office in your area or visit Law Help.
Watch Out For Scams
Solutions that sound too good to be true usually are!
BEWARE of anyone who asks for an upfront fee in exchange for getting you a loan modification, saving your home from default or stopping a foreclosure or tax sale. New York law prohibits the collection of such fees in most cases. Also, many not-for-profit housing counselors will help you negotiate with your lender for free.
BEWARE of anyone who says they can “save” your home if you sign or transfer the deed to your house over to them so you can catch up on your mortgage payments or refinance your loan.
NEVER submit your mortgage payments to anyone other than your mortgage company without their approval.
Questions?
If you still have questions about where to turn for assistance or if you believe you are a victim of mortgage fraud, call the New York State Department of Financial Services
Foreclosure Relief Hotline: (800) 269-0990
Our staff can help you in filing a complaint. We can also answer your questions about mortgages, personal debt and the foreclosure process and can help you find professional help and resources in your area.
File A Complaint
Learn how how to file a complaint against a regulated entity by mail, fax, e-mail or in person.
More Resources for Homeowners
Dangerous or 'Predatory' Loans
The Home Equity Theft Protection Act: Your Rights Under the Law
