Foreclosure and Credit Counseling

Foreclosure is a term no homeowner wants to hear. It means you’ve fallen behind on your mortgage payments to the point where the lender is threatening to seize your home. While this can be a scary and overwhelming situation, it’s important to know that there are safe and effective foreclosure prevention options available to homeowners in this situation.

Rather than working with dubious “mortgage consultants,” reach out to a reputable non-profit organization like the National Foundation for Credit Counseling who can help you manage your finances so you can afford to stay in your home. If you’re having trouble making your mortgage payments, read on to learn what you should do.

Watch Out for Foreclosure “Rescue” Scams

If you’re facing foreclosure, you may be tempted to work with a mortgage “rescue” service. These scam artists are looking for any way to make a quick buck, and they’re even targeting homeowners who are facing foreclosure. As foreclosure rates continue to rise, scam artists are offering to save homeowners from losing their homes. These scammers offer to “pay your mortgage” or “save your home.” In reality, they can evict you from your own home and sell it themselves, or they can strip away the value of your home and take the profits. 

Foreclosure “rescue” scams can cost you big. By doing your due diligence, like checking a company’s reputation at www.bbb.org and contacting a nonprofit credit counselor, you can prevent scammers from taking advantage. Be wary if a company tries to solicit your business and exhibits the following red flags:

• Calling themselves a “foreclosure service” or “mortgage consultant”
• Encouraging you to lease your home, only to buy it back over time
• Collecting a fee before providing any services
• Instructing you to cease all contact with credit or housing counselors; lenders; lawyers; or other legitimate professionals
• Telling you to make your mortgage payments directly to a company, rather than your lender

In general, if a company or its representative uses high-pressure tactics or provides an offer that’s too good to be true, be wary. Contact your lender or a credit or housing counselor before signing any contracts. 

NFCC Can Help You Keep Your Home

If you’re facing foreclosure, you have options. Acting early can help you keep your home and prevent long-term negative financial impacts. The first step is reaching out to the National Foundation for Credit Counseling. Credit counseling and foreclosure prevention counseling go hand and hand, and they’re uniquely provided under the same roof at many of NFCC’s partners. 

These HUD-approved member agencies have housing counselors available to help homeowners understand their options. Whether you need help lowering your monthly payments, improving your financial management skills, or managing relationships with lenders, counseling can help, so take advantage of this free resource today.

Facing Foreclosure? NFCC Can Help

NFCC wants homeowners to know that they’re not alone when it comes to facing foreclosure. There are resources available that can allow you to stay in your home or move on to a better financial situation, and we’re here to help. If you’re worried about making your mortgage payments, we’re ready to connect you with a credit counselor who can create a plan of action to protect your financial future. Don’t wait—call us today at (800) 388-2227!