Foreclosure: What to do if your house is being foreclosed in Pa.?

You received the dreaded letter from your mortgage bank. What now?

1. Open the letter
2. Don't read, let your dog bury it
3. Vacate the premises
4. Stamp "return to sender/address unknown" and mail back
5. Get help from a reputable source

Here are 10 foreclosure tips from the U.S. Housing & Urban Development agency (HUD):

1. Don't ignore the problem.
   The further behind in your payments, the harder it becomes to reinstate your loan, and the more likely you will lose your house.
2. Contact your lender as soon as you realize that you have a problem.
   Lenders have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender.
   The first notices will offer good information about foreclosure prevention options. Later mail may include important notices of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
4. Know your mortgage rights.
   Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in Pennsylvania or get advice from PA Prepaid Legal Advice lawyers.
5. Understand foreclosure prevention options.
   Valuable information about foreclosure prevention or loss mitigation options can be found online.
6. Contact a HUD-approved housing counselor.
   The U.S. Department of Housing and Urban Development (HUD) funds free or very low-cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender, if you need this assistance.
7. Prioritize your spending.
   After healthcare, keeping your house should be your first priority. Review your finances to see where you can cut spending in order to make your mortgage payment. Look for optional expenses--cable TV, memberships, entertainment--to eliminate. Delay payments on credit cards and other unsecured debt until you have paid your mortgage.
8. Use your assets.
   Do you have assets? Perhaps, a second car, jewelry, a whole life insurance policy that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in more income? Make sacrifices to keep your home.
9. Avoid foreclosure prevention companies.
   You don't need to pay fees for foreclosure prevention help--use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD-approved housing counselor will provide free if you contact them.
10. Don't lose your house to foreclosure recovery scams!
    If any firm claims they can stop your foreclosure immediately and if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home. Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD-approved housing counselor.

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