Federal Reserve Offers Tips to Protect Homes from Foreclosure
Posted by greggkilloren on December 29, 2008
The Federal Reserve Board (FRB) has posted a brochure on its website offering five tips for protecting one’s home from foreclosure. The FRB’s website also provides many resources to help consumers navigate the current residential mortgage environment. The tips are summarized as follows:
- Be proactive with your lender if you are falling or have fallen behind on your mortgage payments;
- Before talking to the lender, do your homework; talk a housing or credit counseling agency—this may be the best initial step to take because your lender can, and will, use the information you provide to suit its needs;
- Understand your options—whether it is working out a temporary payment plan to help you catch up or simply selling the house, you must be aware of the benefits and consequences of the path you choose;
- Execute your plan—once you have decided on a plan of action, stay with it;
- Beware of foreclosure rescue scams—many states are reporting a significant rise in foreclosure rescue scams; thoroughly investigate any mortgage company you choose to work with; use the resources provided on the Federal Reserve’s website or call your state’s banking regulator.
The full brochure, 5 Tips For Protecting Your Home from Foreclosure, may be read here.
