Foreclosure Prevention Resources
Help and Options for Homeowners Facing Financial Hardship
You Have Options
If you’re having trouble making your mortgage payments, you’re not alone. There are many resources and options available to help you avoid foreclosure and keep your home. The most important step is to act quickly and reach out for help.
Time is critical.
Contact your lender or a HUD-approved housing counselor as soon as you realize you may have difficulty making payments. The earlier you act, the more options you'll have available.
Take Action Now
1. Contact Your Lender
Call your mortgage servicer immediately. Explain your situation and ask about foreclosure prevention options. Don't ignore their calls or letters.
2. Get Free Counseling
Contact a HUD-approved housing counselor at 1-800-569-4287. These services are free and can help you understand your options.
3. Gather Documents
Collect your mortgage statements, income documentation, and budget information. You'll need these to explore your options.
Foreclosure Prevention Options
Loan Modification
Permanent change to your mortgage terms
A loan modification permanently changes one or more terms of your mortgage to make your payments more affordable. This may include:
- Lowering your interest rate
- Extending your loan term
- Reducing the principal balance
- Converting from an adjustable to fixed rate
Forbearance Agreement
Temporary payment reduction or suspension
A forbearance agreement temporarily reduces or suspends your mortgage payments for a specific period (typically 3-12 months). This gives you time to get your finances in order. You’ll need to repay the missed payments later through a repayment plan or loan modification.
Repayment Plan
Catch up on missed payments over time
A repayment plan allows you to catch up on missed payments by paying your regular monthly payment plus a portion of the past-due amount over several months. Your original loan terms remain unchanged.
Short Sale
Sell your home for less than you owe
With lender approval, you can sell your home for less than the amount owed on your mortgage. The lender agrees to forgive the difference. This option may be less damaging to your credit than foreclosure.
Deed in Lieu of Foreclosure
Voluntarily transfer your property to the lender
You voluntarily transfer the deed of your property to the lender in exchange for being released from your mortgage debt. This avoids the foreclosure process and may be less damaging to your credit.
Refinance
Replace your existing mortgage with a new loan
If you have sufficient equity and good credit, you may be able to refinance your mortgage to lower your monthly payments. You’ll need to qualify under current lending standards.
State-Specific Protections
California Homeowner Bill of Rights
California law provides significant protections for homeowners facing foreclosure:
- Single Point of Contact: Your servicer must assign you a specific person or team to handle your application.
- No Dual Tracking: Your servicer must pause foreclosure while reviewing your completed loan modification application.
- No Modification Fees: You cannot be charged fees for applying for a loan modification.
- Right to Appeal: If your application is denied, you have the right to appeal and must receive written reasons for the denial.
Nevada Foreclosure Mediation Program
Nevada offers a court-supervised mediation program for homeowners facing foreclosure:
- Mediation Right: You can file a petition for mediation within 30 days of receiving a Notice of Default.
- Low Cost: The filing fee is only $25, making this option accessible to most homeowners.
- Neutral Mediator: A trained mediator helps you and your lender negotiate alternatives to foreclosure.
Arizona Foreclosure Process
Arizona primarily uses non-judicial foreclosure, but homeowners still have options:
- Demand Letter: Most lenders provide a demand letter before beginning foreclosure, giving you time to act.
- Homeowner Assistance Fund: Low-income Arizona homeowners may qualify for assistance through the HAF program.
- Right to Reinstate: You have the right to reinstate your loan by paying the past-due amount before the foreclosure sale.
Utah Foreclosure Protections
Utah uses non-judicial foreclosure with the following protections:
- Postponement for Negotiations: Lenders may postpone trustee sales to allow more time for foreclosure prevention negotiations.
- Tenant Protections: Tenants in foreclosed properties are entitled to 90-day notice before eviction (for federally related mortgages).
- Counseling Resources: Free foreclosure prevention counseling is available through organizations like AAA Fair Credit Foundation.
Texas Foreclosure Process
Texas primarily uses non-judicial foreclosure with specific timeline requirements:
- 120-Day Requirement: Most bank loans must be 120 days delinquent before foreclosure activity can start.
- Loss Mitigation Protection: If your complete application is received at least 37 days before a scheduled sale, the lender must stop all foreclosure activities.
- Notice Requirements: Lenders must provide 20-30 days to cure default and at least 21 days' notice of foreclosure sale.
- Free Counseling: HOPE™ Hotline at 888-995-HOPE (4673) provides free foreclosure prevention assistance.
New Mexico Foreclosure Protections
New Mexico requires judicial foreclosure with court-supervised protections:
- Judicial Process Required: Lenders must file a lawsuit and obtain court order before foreclosure, providing additional homeowner protections.
- Settlement Program: Statewide Foreclosure Settlement Program helps homeowners and lenders reach mutually agreeable solutions, with majority resulting in loan modifications.
- Redemption Rights: Homeowners generally have 9 months after foreclosure sale to redeem their property.
- Free Counseling: Contact foreclosure counselors at 575-541-0477 for assistance.
Colorado Foreclosure Protection Act
Colorado provides comprehensive protections through the Foreclosure Protection Act:
- Protection Against Predatory Practices: The Foreclosure Protection Act regulates equity purchasers and foreclosure consultants to prevent deceptive practices.
- Cancellation Rights: Homeowners have right to cancel certain contracts until 12 Midnight of 3rd business day after signing or 12 Noon day before foreclosure sale.
- Emergency Assistance: Emergency Mortgage Assistance Program provides up to $40,000 in one-time assistance to eligible homeowners.
- Free Counseling: Colorado Foreclosure Hotline at 1-877-601-HOPE (4673) or CARE Center at 1-888-480-0066.
Beware of Foreclosure Rescue Scams
Scammers often target homeowners facing foreclosure. Protect yourself by watching for these warning signs:
- Anyone who asks you to pay fees before providing services
- Promises that seem too good to be true or guarantees to stop foreclosure
- Requests to sign over the deed to your property
- Pressure to sign documents you haven’t had time to review
- Instructions to stop communicating with your lender
- Requests to make mortgage payments to anyone other than your lender
Remember: HUD-approved housing counseling is always free. Never pay upfront fees for foreclosure prevention help.
Free HUD-Approved Housing Counseling
HUD-approved housing counselors provide free foreclosure prevention counseling. They can help you assess your financial situation, review your loan documents, and explore all available options.
1-800-569-4287
Call toll-free
202-708-1455
TTY
Available to help you understand your options and communicate with your lender.
Questions? We’re Here to Help
At Sun American Mortgage, we understand that facing financial hardship is stressful. Our team is here to help you explore your options and find the best path forward.
1-800-469-7383
Phone
4140 E. Baseline Rd. Ste 206 Mesa, AZ 85206
Corporate Office
St. George, UT • Richfield, UT • Mesquite, NV
Additional Locations
NMLS #160265 | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act License #413-0766
Important Disclaimer: The information on this page is for educational purposes only and does not constitute legal advice. Foreclosure laws and procedures vary by state and individual circumstances. Homeowners should consult with a qualified attorney or HUD-approved housing counselor for advice specific to their situation.
Time is critical when facing foreclosure. The earlier you take action and seek help, the more options you will have available. Do not wait until it’s too late.
