Tips

1. My divorce decree states that my spouse is responsible for the house. Therefore, I am relieved of my financial responsibility for the home.
If you signed the documents at the closing of the loan, you and/or your estate are legally and financially responsible for the loan. Until the property is QuitClaim deeded to the spouse and the mortgage company grants a release of liability, all parties that signed the documents at closing are responsible for the house.

2. The mortgage company wants my house.
A mortgage company makes the majority of their income from fees and points. The processes that occur during mortgage default do not drive revenue for the mortgage company. The mortgage company is not in the business of owning properties but of servicing mortgages.

3. If I don't open the mail or answer the phone calls from the mortgage company, they cannot foreclose on my home.
A servicer only needs to prove that they have attempted to contact you to discuss the delinquency. They do not have to speak with you to begin the foreclosure process.

4. The only options that I have are to pay all of the past due payments and fees, sell my house for enough to pay my loan in full, let the mortgage company foreclose on my home, or file bankruptcy.
There are many other options available to help homeowners who become delinquent on their mortgage accounts. It is just a matter of understanding what they are and where to go for help.

5. The mortgage company will not help me because I am not behind on my payments.
Many mortgage companies now have programs in place to assist homeowners who realize that they will not be able to maintain their payments and may become delinquent in the future. This is known as imminent default.

6. The foreclosure sale date has been set; therefore it is too late for help.
There are many ways to save the home even after the sale date has been set.

7. I cannot sell my house because I owe more than it is worth.
If you qualify, there are programs that may allow you to sell your property for less than the full payoff amount. There are factors including the reason for default, the appraisal amount and the length of time you have listed the property that need to be met.

8. I want my house. However, my income has decreased. Therefore, I have to sell my house.
There are many programs that will allow you to keep your home, even if your income has decreased. These programs could lower your payment temporarily or permanently.

9. Bankruptcy is the only way that I have to stop foreclosure.
There are many options available since it does not benefit the mortgage servicer, mortgage investor or mortgage insurance company to foreclose on the property.

10. Since I am already in default, my credit is completely ruined. There is no reason to try anything now.
Steps can be taken to minimize the damage to your credit score. In this day and time, a good credit score is essential.
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