When you reach out to your mortgage company or lender to explore options to help you pay your mortgage, a few things you can expect during the process are:
- Your mortgage company will evaluate your income, debt, and hardship in order to determine your eligibility.
- You will likely be required to provide documentation.
- The mortgage company might request that you use other housing related resources i.e. housing counselors and local housing counseling agencies.
Interacting with Housing Counselors
Many mortgage companies agree to put the foreclosure process on hold during modification negotiations or while you are exploring an appropriate solution for the delinquency or default on your mortgage. During the foreclosure counseling session, the housing counselor will likely:
- Take a look at your current financial situation
- Help you take a hard look at your current spending
- Help you develop a budget that will determine the maximum funds available towards your mortgage payments
- Explore the reasons for the delinquency or default, and document them (these reasons may serve as the basis for a hardship letter)
- Review the options available to you and help determine the best solution for your particular situation
You can expect the housing counselor to be absolutely honest. Consider this type of honest feedback to be a benefit as a failed solution may leave you in an even worse position.
Together you and the housing counselor will develop an action plan that will outline your options as well as the next steps.
Speak with a housing counselor now—CALL 888-995-HOPE (4673).