A HUD-approved housing counselor can play an important role if you have fallen behind on your mortgage payments and may be facing foreclosure.
HUD approved counseling agency staff must possess a working knowledge of HUD housing programs (including public housing), the housing programs available in the community, and the local housing market.
A housing counselor will help you assess your financial situation and offer specific suggestions on what you should do, free of charge.
Beware of scams. If someone contacts you and offers to help save your home, be very cautions. Learn more.
To find a HUD-approved housing counseling agency near you that provides free foreclosure prevention counseling:
A housing counselor can:
- Review your financial situation and help you plan a budget and spending plan;
- Help you to contact your lender or loan servicer and prepare a “hardship letter” that explains your situation;
- Identify what workout options are available and the option that is best for you;
- Explain the terms of any refinancing or other options to you.
The documents needed for housing counseling sessions are as follows:
- Copy of your mortgage/deed of trust
- Copy of your note
- Any correspondence from the mortgage company or its attorney, even if it’s unopened
- Any documentation from the courts or the sheriff regarding a foreclosure
- Most recent pay stubs for all employment
- Last two months of all bank statements
- Most recent bills and statements for all expenses
- Last year’s tax return
In addition, the national non-profit Homeownership Preservation Foundation provides free foreclosure counseling by phone. Its toll-free hotline is 1-888-995-HOPE.