How to Keep Your Home
Call Your Mortgage Company
If you’ve lost your job, suffered an injury, or experienced a divorce, you may be struggling to make your mortgage payments. Don’t risk losing your home or jeopardizing your credit without researching other options. First, call your mortgage company. They might suggest solutions like:
- Reinstatement: paying the total amount you are behind in a lump sum by a specific date
- Repayment plan: repaying the amount you are behind, combined with your regular payment within a fixed timeframe
- Loan modification: changing the original terms of your mortgage agreement
- Short payoff: selling your home even if the sale proceeds are less than the amount you owe; some of the portion that exceeds net proceeds from the sale may be written off
Call us at Altura to find out more information by calling 1st Mortgage Loans at 877-877-8697. You can also call 866-571-5099 about home equity or home equity lines of credit.
Contact a Non-Profit Housing or Credit Counseling Agency
Credit counselors can help you budget to pay your mortgage and other monthly expenses without your getting your mortgage company directly involved. These agencies can also help you find local programs that provide support with financial, legal, and medical needs. You can also try looking for a credit counseling agency online. If you can’t find one, call the U.S. Department of Housing and Urban Development at 800-569-4287.
If you still can’t keep your home, your mortgage company can work with you to avoid foreclosure. This will reduce the negative effect on your credit. There are many ways this could happen depending on your financial circumstances.
Beware of Predatory Lenders
Predatory lenders may target you while you’re in financial distress. They will try to make you commit to a high-cost mortgage, which will make your financial problems even worse. Predatory lenders usually offer loans with:
- Higher interest rates than those you should qualify for
- Excessive broker fees or unnecessary costs like pre-paid life insurance
- Terms that will make it very difficult to repay
Here are tips on how to avoid predatory lenders:
- Be suspicious of anyone offering “bargain loans.”
- Beware of promises like “No Credit? Bad Credit? No Problem!”
- Avoid lenders who encourage you to borrow more than you need or more than your home’s value.
- Beware of terms that change last-minute or offer next-day approval based on pre-payments or upfront fees.
- Ask questions and don’t sign you don’t understand
- Avoid credit counseling agencies charging high fees for financial services you can get for less through non-profit agencies
If you suspect a predatory mortgage company is targeting you, call your local office of consumer affairs, an approved credit counseling agency, the FBI, or your local “Don’t Borrow Trouble” campaign.
What You Need for More Foreclosure Alternatives
You can take advantage of foreclosure alternatives by compiling several documents including:
- Completed budget analysis from Balance Financial Fitness, who you can call at (888) 456-2227
- Signed letter that details what caused your financial burden
- Most recent filed tax returns, schedules, and W-2s if you’re self-employed
- Completed Altura financial worksheet
- Proof of homeowners’ insurance
- Evidence of property taxes
- Completed request for the transcript of tax return
- Proof of first mortgage modification (if applicable)
- Two months current, completed bank statements from members obligated on the loan
- Two months of current pay stubs from members obligated on the loan
Please note the additional requirements for short sale requests:
- Offer full market value
- Include an estimated net sheet
- Show estimated net amount to Altura
- The seller must show a net-zero
- Include the estimated closing date
- Obtain written approval from lien holders
Fax all items to 951-571-5818. You can also mail them to:
PO Box 908
Riverside, CA 92502-0908
Attn: Mortgage Loan Servicing
A loan counselor will contact you after receiving these documents.