Stress saving tip: See a foreclosure counselor
Seek advice from a foreclosure counselor to reduce housing related anxiety.
Foreclosure! Missed mortgage payments! The thought of these housing issues terrifies most consumers. Fortunately, those facing foreclosure do not have to fend for themselves. Housing or foreclosure prevention counselors can provide guidance through the foreclosure process.
The counselor helps the homeowner understand the financial components of budgeting and debt management and provides foreclosure prevention education. They will assess the homeowner’s situation and derive options based on mortgage type and lender guidelines. If foreclosure is inevitable, they can offer informational resources to help with the transition.
Homeowners should contact their servicer as soon as they realize there is a possibility of missing a mortgage payment. Servicers are responsible for the management of the mortgage on a daily basis. A mortgage servicing company may be a different company than where the loan was obtained. Homeowners can find the identity of their mortgage loan servicer by checking their payment coupons or statements. They can also search for the identity using the Mortgage Electronic Registration System (MERS).
In addition, homeowners should contact a housing counselor. They should look for a HUD-certified agency in their area. These agencies provide foreclosure prevention services at no cost homeowners.
Mortgage and tax delinquencies may not only lead to foreclosure but will certainly add to the homeowner’s increasing anxiety. The professional advice and guidance offered by foreclosure counselors are priceless resources for stress reduction.
If you have questions about personal finance, or would like to ask an expert, Michigan State University Extension has access to many resources. Visit the MI Money Health page for more information and answers to your questions including more information about creating a spending plan.