Facing Foreclosure?

Behind in your mortgage payments or facing foreclosure? Take action immediately by calling your lender or a HUD-approved housing counselor.

The sooner you alert your lender to your situation, the more options you have to avoid foreclosure and work out a solution. Waiting will increase the possibility of losing your home and severely damaging your credit and ability to borrow money.

However, your lender is not required to offer or accept a workout program. With that in mind, based on your individual situation, the lender may, but is not required to, agree to one of these workout plans:

Repayment Plan
Allows you to catch up on missed mortgage payments by creating a schedule for repaying the past-due amounts

Loan Modification
Changes the terms of your mortgage to make payments more affordable (some ways this may be done: extending the number of years on your loan or changing an adjustable rate loan to a fixed rate loan)

Forbearance
Allows reduced or suspended payments for a short period of time, after which another option will be agreed upon to bring the loan current

Act Now
There are many resources available to help you avoid foreclosure if you take action early:

Glendale City Employees Federal Credit Union
Talk to one of our loan counselors at 818/ 548-3976. We’ll review your situation to see what we can do to help. Plus, we’ll recommend how you can get some breathing room to deal with both short-term and long-term financial challenges.

Department of Housing and Urban Development (HUD)
Contact a HUD-certified counselor at 800/ 569–4287. Or log-on to www.hud.gov‡ for a listing of Community Counseling Agencies.

HOPE NOW Alliance
An independent non–profit with a single mission of helping homeowners avoid foreclosure. To contact one of the organization’s HUD-approved counselors call 888/ 995-HOPE (4673) or visit www.995hope.org‡.

We know it’s difficult to face up to serious financial problems and the possible loss of your home. But, the sooner you do the better your chance of keeping your home and/or improving your situation.

Beware Of Foreclosure Scams
Homeowners faced with the possibility of losing their home are ripe targets for scam artists who promise to stop the foreclosure process. Keep in mind, that as a member of Glendale City Employees Federal Credit Union, foreclosure prevention assistance and counseling is available free of charge. When necessary, we will refer you to other non-profit resources that can provide additional assistance at no cost.

If you are behind in your mortgage payments, many for-profit companies will contact you promising to negotiate with your lender. While some may be legitimate businesses, all will charge you hefty fees for information and services that are free of charge elsewhere.

If anyone promises they will stop your foreclosure if you sign a document appointing them to act on your behalf — BE CAUTIOUS! You may actually be transferring ownership to them 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.

Here are some common foreclosure scams:

Equity skimming
A "buyer" offers to pay off your mortgage, or give you money when the property is sold. They ask you to move out quickly and deed the property to them. They then rent out your home, and pocket the rent money without making any mortgage payments. When the lender forecloses, it’s a surprise to you and the renters. And to make matters worse, even though you signed over your deed, your mortgage obligations probably did not end.

Phantom help
You are charged outrageous fees for phone calls or paperwork you could easily do yourself. None of these calls or letters are likely to save your home. Instead, you’re given a false sense of hope that actually delays and prevents you from seeking qualified help early in the process, when it’s most effective.

The bailout
You are talked into signing over title believing that you can stay in your home as a renter at a lower monthly cost, and buy it back over time. But, the terms make the buy-back nearly impossible. As a result, you lose possession and the "rescuer" walks off with most, if not all, of your equity.

Bait-and-switch
You’re told you are signing documents to bring the mortgage current, but are actually signing over ownership. You learn of the scam later, when you are being evicted.

Phony counseling agencies
A "counseling agency" offers to negotiate a new payment plan with your lender, or pursue a pre-foreclosure sale for a fee. You could do these services for yourself, at no charge.

High-Risk Second Mortgages
Be cautious. Although they may look like a good, or only option – they may make your situation worse.

So what should you do?
Don't ignore the problem. Mortgage issues only become more difficult to resolve the further behind you get. Waiting will never improve your financial situation or options.

You’re not alone. Millions of Americans are facing financial difficulties. Take the steps to help yourself and your family by allowing others to help you. The sooner, the better.

 

 
   
Your funds are federally insured up to $250,000 by the National Credit Union Administration, a U.S. government agency. The NCUA separately insures Individual Retirement Accounts up to $250,000.
 

We are an Equal Housing Lender, and do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act.


‡By clicking this link you will be leaving the credit union's website. The privacy policies of the third-party website you are linking to may differ from the credit union's. The third-party site is not owned or controlled by the credit union, and we are not responsible for its availability, content, security, claims, or for information, goods or services obtained from it. The credit union does not represent either the third party or the member if the two enter into a transaction.