First of all, if you are struggling to make your payments, call or write to the Loss Mitigation Department right away. Explain your situation and be prepared to provide them with financial information such as your monthly income and expenses. It’s important to contact the right company about this. Your lender may have delegated tasks related to managing your account to a company called a “loan servicer.” The servicer is identified on your monthly loan statement.
- Contact your servicer as soon as you know your payment will be late.
- Never ignore the servicer’s letters or phone calls. You cannot help the situation by avoiding contact, and if you have missed a payment the servicer may actually be calling to suggest a workout to avoid foreclosure.
- Don't assume your situation is hopeless. Depending on your situation, there may be a number of realistic options to avoid foreclosure.