Don't be afraid to communicate

● Don't ignore notices you receive in the mail.

● As soon as you suspect that you might have difficulty making payments ask your lender for help.

● Call 2-1-1 to locate a housing counseling agency that may be able to help you avoid foreclosure as well as provide other resources for basic needs and services.

● If you think that you may not be able to keep your home contact your mortgage lender and ask for the loss mitigation department.


Closely examine your finances

● Compare your monthly spending to your monthly income. Make note of any deficit that you need to manage.

● Get an accounting of any assets you have that may help bring your mortgage payment up to date.

● Consider cancelling those services that are not essential to assist with making payments.


Working with a Loss Mitigation Representative

● Keep track of every time you contact the loss mitigation department or they contact you. Take notes on the conversation.

● Be proactive; don't wait for them to contact you if you haven't heard anything.

● Be sure to locate pay stubs or other income verification, W-2 forms for the previous year, and have an idea of your budget to present upon request.

Source: Michigan State Housing Development Authority, Stages of foreclosure, http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177816--,00.html