How to Avoid Foreclosure and Keep Your Home

How to avoid foreclosure and keep you home

The following information is from the downloadable brochure “How to Avoid Foreclosure and Keep Your Home,” prepared by Georgia Legal Services, last updated September, 2008.

How to Avoid Foreclosure and Keep Your Home

If you have fallen behind in your home mortgage payments it is important that you do not ignore the problem. Even if you are behind in your payments it may still be possible for you to keep your home. It is important that you act quickly.

If you are unable to make your mortgage payment:

1. Don't Ignore the Problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact Your Lender as Soon as You Realize That You Have a Problem.

Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and Respond to All Mail from Your Lender.

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know Your Mortgage Rights.

Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and time frames in your state (as every state is different.)

5. Understand Foreclosure Prevention Options.

Valuable information about foreclosure prevention (also called loss mitigation) options can be found at

6. Contact a HUD-approved Housing Counselor.

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.

7. Prioritize Your Spending.

After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8. Use Your Assets.

Do you have assets-a second car, jewelry, a whole life insurance policy that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid Foreclosure Prevention Companies.

You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10. Don't Lose Your House to Foreclosure Recovery Scams!

If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.

Call For Help

If you are behind in your home payments and in danger of facing foreclosure, you need to act now. You can call 1- 888-995-HOPE for help. Homeowner's HOPE is a nation-wide counseling service provided by the Homeownership Preservation Foundation. They can work with you to find a solution. The help they offer is free. Their counselors are experts in foreclosure prevention and trained to set up a plan of action designed just for you and your situation.

The information contained in this brochure only applies in the State of Georgia. The information contained herein is correct as of September 2008. This brochure is intended as information only and does not constitute legal advice. Anyone seeking legal advice should consult an attorney.


Our PDF download files do not fully comply with all applicable guidelines for accessible digital documents.

Last Review and Update: Oct 20, 2008
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