Where to get help if you face foreclosure

STEPS TO TAKE

If you're in danger of falling behind on your mortgage or already have missed payments, you still might be able to avoid foreclosure.

Don't ignore the problem. Don't ignore letters from your lender.

Contact your lender, as well as a nonprofit homeownership counseling group, to help you navigate a variety of options. Most lenders begin foreclosure only when all else fails. Their ability to help declines with each missed payment.

After contacting a lender, follow up for help with a letter seeking specific relief and include any documentation needed.

Keep a phone log of all calls made to and received from the lender. Include the time of the call, the person you spoke with and results of the conversation.

Be sure to meet any deadline given to you by the lender.

Lenders may offer one of the following options to borrowers who are behind in their payments:

Repayment plan: A written agreement between the borrower and lender to help you make up missed payments, generally requiring paying something toward the amount in arrears plus the normal mortgage payment.

Modification: Changing terms of a mortgage, including lowering the interest rate, extending the loan term, changing the type of mortgage.

Forbearance: A period without having to make payments, typically three to six months. That amount must be made up on future payments.

Refinance: Not usually an option if seriously delinquent. If current, however, and there is equity in the property, this might be an option.

Second mortgage (equity loan): Possible even if you are seriously delinquent if there is enough equity in your home. Not generally feasible when you are having trouble making first-mortgage payments.

Bankruptcy: Chapter 13 bankruptcy may help you save your home from foreclosure if all other options have failed. You will need to consult a bankruptcy attorney.

Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development 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.

The following are HUD-approved housing counseling agencies for help:

California Rural Legal Assistance: Santa Rosa, 528-9941

Catholic Charities housing and foreclosure counseling: Santa Rosa, 575-0215

Consumer Credit Counseling Service of San Francisco: (800) 777-7526

Foreclosure prevention companies

Companies may contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee for information and services your lender or a HUD approved housing counselor will provide free.

Foreclosure recovery scams

If any firm claims they can stop your foreclosure immediately 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.

The following Web sites offer information about financial education, mortgage terminology, free services available to the homeowner, free counseling and outreach events.

Fannie Mae: www.fanniemae.com

Freddie Mac: www.freddiemac.com/corporate/buying_and_owning.html

Home Loan Learning Center: www.homeloanlearningcenter.com

Homeownership Preservation Foundation: www.995hope.org

MyMoneyManagement: www.MyMoneyManagement.net

NeighborWorks America: www.nw.org/network/home.asp