AVOIDING FORECLOSURE

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					                                     (512) 374-2700

                          SAVE YOUR HOME
Foreclosure Warning Signs
You might be in danger of foreclosure if you:
 are having trouble making your mortgage payments;
 have missed a mortgage payment; or
 have received a letter from your lender asking you to contact them.

Get Help Right Away
Thinking that you can catch up without any help may lead to more problems. You are
not alone. Many families are having trouble making their mortgage payments. A
housing counselor can help you understand your options and help you talk to your lender.
Even if you think that you will be able to make the payment in a few days, you should get
help.

Help is Available
Texas RioGrande Legal Aid (TRLA), in partnership with the Volunteer Lawyer Services
of Central Texas offers free face-to-face counseling at twice-weekly evening clinics for
people who live in Travis County. The clinics are offered on Monday nights at Martin
Middle School and on Wednesday nights at Webb Middle School. Sign is from 6:00 p.m.
and ends at 7:00 p.m. For more information, call (512) 374-2700.

HUD-Approved Counseling Agencies offer free or very low-cost assistance to
homeowners who need help. The services include: 1) face to face counseling; 2) help to
prioritize debts; 3) negotiating with lenders; and 4) explanation of options. See last page
for such local agencies.

HOPE for Homeowners offers free foreclosure prevention and counseling through a
national toll-free hotline. You can talk to an experienced housing counselor in either
English or Spanish. Counselors are available 7 days a week, 24 hours a day. Call 1-888-
995-HOPE. The hotline is a partnership between the Homeownership Preservation
Foundation and NeighborWorks®America.

Tell Your Lender That Your Payment Will Be Late
Good lenders want you to keep your home. They may be able to offer you several
options that will allow you to keep your home while you are going through financial
difficulties. Contact your lender as soon as you know that you are going to miss a
payment.
Don’t Rely on Foreclosure Prevention Companies or For-Profit Counseling
Agencies
Foreclosure prevention companies offer information or assistance to negotiate payment
plans with your lenders for a high fee. Don’t pay for this type of help. Nonprofit
counseling agencies like the HUD-approved agencies listed in this brochure offer the
same services for free.

Watch Out for Foreclosure Recovery/Rescue Scams
Don’t sell or deed your home to a buyer who offers to let you stay in the home and pay
rent. You will still be in danger of losing your house either because your new landlord
can kick you out or because your new landlord does not make the mortgage payments to
the lender and the lender will foreclose anyway.

Be careful of anyone who claims that they can stop foreclosure immediately if you sign a
document that allows them to act on your behalf. The document they ask you to sign
might give away the title to your home.

Be careful of anyone who tells you that you are pre-approved for credit because of the
equity in your home. While a quick loan might seem the answer to your problems, the
documents that you sign may give away the ownership of your home.

Don’t Sign Any Documents
Contact a HUD-approved housing counseling agency or an attorney before signing any
document that you believe will help you to avoid foreclosure.

Foreclosure Prevention Options
The options that your HUD-certified housing counselor and lender work out with you
may include the following:

Bringing Your Account Current at An Agreed Time: Lenders are willing to let you bring
the account current at a specified time that you both choose.

Delaying Payments: This is also called forbearance. If your lender agrees to this option it
is with the understanding that the delay is only for a short time that you will bring your
account current through another option after the delay.

Making a Payment Plan: If you can make payments, your lender might agree to a plan
that adds part of the past-due amount to each current payment.

Making Mortgage Modifications: Your lender can make changes to your mortgage that
allow you to reduce your payment or roll any past due amount into the life of the loan.
These arrangements often extend the life of the loan or raise the interest rate on the loan.

If Catching Up is Impossible
Lenders are often able to work our arrangements with homeowners who know that they
will not be able to catch up. All of these options involve giving up your home. These
options might include selling the home through an approved realtor or deeding the
property back to the lender. These options may result in settling for less than your house
is worth or may have a negative impact on your credit. You should only consider these
options as a last resort and only after talking to a HUD-approved credit counselor or an
attorney.

Special Relief
Disaster Relief: If your home was damaged in a disaster or you were the victim of a
disaster, you may be eligible for relief. Call HUD’s National Servicing Center at (888)
297-8685 or see http://www.hud.gov/offices/hsg/sfh/nsc/qaho0121.cfm for more
information.

Active Military Service: Members of the Armed Forces in Active Military Service may
be eligible for special protections and assistance. For more information, contact a HUD-
approved housing counseling agency or your local military legal assistance office. See
http://www.hud.gov/offices/hsg/sfh/nsc/qasscra1.cfm for more information.

Veterans Administration Guaranteed Loan: If you bought your home with a VA loan
guaranty, additional counseling and assistance is available through a VA Regional Loan
Center. Call (888) 232-2571 or see http://www.vba.va.gov/houstonrlc.htm for more
information.

FHA Homeowners: If you bought your home through an FHA loan program, HUD’s
National Service Center can help you contact your lender. Call (888) 297-8685 for more
information.

Local HUD-Approved Counseling Agencies
Texas RioGrande Legal Aid
Call (512) 374-2700 or attend an evening clinic for help:
Mondays, Martin Middle School, 1601 Haskell (at Haskell and Comal)
Wednesdays, Webb Middle School, 601 E. St. John’s Avenue

Austin Tenants’ Council
Call (512) 474-7007 or see www.housing-rights.org for help.

Consumer Credit Counseling Services
Call (512) 447-0711 (North), (512) 697-0875 (South); or, see www.cccs.net for help.

East Austin Economic Development Corporation
Call (512) 472-1472 for help.

A full list of HUD-approved agencies in Texas is available at:
http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction=search&searchstate=tx

Additional tips for saving your home are available at:
http://www.hud.gov/foreclosure/index.cfm