• Be prepared to spend significant time on hold.
   
• Document the date and time, name of the person you talked to, and summarize what was discussed.
   
• Ask for a direct phone number and extension.
   
• Do NOT agree to a repayment plan unless you are positive you can fulfill the agreement.

Preparing for Counseling

If after following these instructions and talking with your lender, you feel you need further assistance, please come to a Mortgage Default Intake Orientation which takes place every Thursday from 5:00 pm to 6:00 pm. Please check our calendar to confirm.  

We are a HUD-approved mortgage default prevention counseling agency.  We can help you avoid foreclosure rescue scams and set up a plan of action designed just for you and your situation.  Our only fee is $25 for a credit report. Counseling is available in English and Spanish.

Below are some suggestions to review before your counseling session:

• Download and review the Homeowner Checklist to Avoiding Foreclosure which provides general suggestions and ideas as to how you can prepare for and work through tough times.  This checklist is not comprehensive and is not intended to provide legal advice.  If you need legal advice, you should speak with a lawyer.  The best way to avoid foreclosure is to make your mortgage the first bill that you pay each month.  However, that is not always possible.
   
• Call your lender each month to keep them informed of your progress.  No lender wants to foreclose on a mortgage. Foreclosure costs them more money than they can make back from the foreclosure sale. Therefore, lenders do not foreclose in order to make money, but only reluctantly as a way of limiting losses on a defaulted loan. This is why, if you get behind on your mortgage payments, your lender will work with you to devise a practical plan to cure the default and bring the loan current.
   
• Look at your debts closely when Choosing Which Debts to Pay First.  Determine which of your debts are "secured" and which are "unsecured".
   
• Lenders can offer alternatives to mortgage foreclosures.  You will need to provide a Hardship Letter, list of assets and expenses, bank statements, and pay stubs.  Any lender workout agreement is a last-ditch effort by you and your lender to avoid foreclosure and keep you in your home.  It is not a substitute for good budgeting and financial planning on your part and will probably not be available if your payment record has not been consistently good up to the present time.  Lenders will work closely with good borrowers who are having a period of real emergency and hardship, but are not inclined to cooperate with those who demonstrate little financial discipline.
   
• At sometime, you may think of refinancing.  Be careful of using this option.  Remember, there are costs involved and usually higher interest rates, due to your situation.  Refinancing an unaffordable amount of debt is one of the most tempting, yet risky steps you can take, when you have financial problems.  Many refinancing loans will hurt you more than they help.  Download and review the Refinancing Do's & Don'ts and 15 Simple Refinancing Rules.

Additional Reading

• Washington Department of Commerce - Foreclosure Mediation Program

• Institute for Foreclosure Legal Assistance - Washington Foreclosure Fairness Act Homeowners Mediation Program

• Seattle/King County Asset Building Collaborative - Washington Foreclosure Prevention Resource Guide

• Oregon Department of Consumer and Business Services - Foreclosure: You can avoid it — Steps you can take to protect your home and your credit

• Washington Department of Financial Institutions - Foreclosure Help and Information

• HUD / U.S. Treasury - Making Home Affordable

• HUD - Tips for avoiding foreclosure

• Homeownership Preservation Foundation - Common Foreclosure Myths

• NeighborWorks® - Center for Foreclosure Solutions

• Consumer Credit Counseling Service - Worried about keeping your home?

• Consumer Credit Counseling Service - Preocupado por conservar su casa?