Resources and advice for homeowners dealing with foreclosure
In Over Your Head?
You are not alone, but what is homeowner in trouble to do? Don't wait for a miracle to happen!
- Accept that you can't afford your mortgage.
- Prove this to your bank.
- Begin talking to you bank's loss mitigation department. Call and explain that you're about to start missing payments. If you're not far from being able to pay the monthly mortgage, the bank may modify your payments or stretch out the amortization on the loan to make the payments smaller, and thus more manageable.
Until the banks know how many homeowners are truly in trouble, they won't know how best to respond. They can only guess right now how many mortgages may head into foreclosure this year. By starting this process, you allow the banks to get a better handle on the situation, and ultimately set us on the path to recovery.
Q&A With Ray Martin
Are you facing foreclosure? Ray Martin wants to hear from you. He may offer you guidance in our "Hitting Home Early" series.
E-mail your questions and check back for answers:
Scam Alerts
Struggling with debt? A legitimate credit counseling company can help. But a bad one can do more damage.
- Ray Martin: How To Avoid Getting Taken When Seeking Credit Repair Help
- Federal Trade Commission Mortgage Foreclosure Scams
Tax Relief
IRS breaks for homeowners facing foreclosure or having trouble making their payments.
- IRS Questions and Answers on Home Foreclosure and Debt Cancellation
- Eligible taxpayers may deduct the amount they paid in mortgageinsurance premiums for 2007 as residence interest on mortgages thatwere new or refinanced last year. Only taxpayers with adjustedgross incomes of $100,000 or less qualify for the full deduction.
- Mortgage Forgiveness Debt Relief Act of 2007: For certain homeowners facing foreclosure, taxpayers granted forgiveness on mortgage debt in 2007will not have to pay taxes on the amount forgiven. This is wherethe balance of the loan was less than $2 million, or $1 million for a married person filing separately. You'll need Form 982. In the past, such forgiveness was taxed as income.
Links & Numbers
- Hope Now Alliance: (888) 995-HOPE. This is an alliance of counselors, loan servicers, investors, and other mortgage market participants established by the government in October with the goal of helping struggling homeowners. Give them a call, and they'll talk to you about your financial situation, look up your loan, and let you know in about 20 minutes about alternatives you may have to foreclosure.
- HOPE Coalition America provides financial guidance to homeowners in danger of losing their homes. Those facing notice payments challenges should call (877)592-HOPE (4673).
- HUD: Tips on Avoiding Foreclosure: (800)569-4287
- Federal Reserve Education Resources
- Freddie Mac: Avoiding Mortgage Fraud
- Freddie Mac: Do's & Don'ts Of Foreclosure
- Fannie Mae HomeStay Initiative
- Mortgage Bankers Association Foreclosure Prevention Resource Center
- Lender Sites
- National Credit Counseling Center: English | Espaņol
- HUD: Resources By State
- NeighborWorks Center For Foreclosure Solutions
- FTC: Mortgage Payments Sending You Reeling?
Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
