If you can't pay, call the bank or finance company as soon as you have a problem keeping your obligation. An early notification increases the possibility of working out a repayment plan agreeable to both parties. Foreclosure is a 9 to 10 month process and every moment counts.
It helps to get an expert on your side. You can get advice on avoiding foreclosures from a housing counselor approved by the U.S. Department of Housing and Urban Development (HUD). In Sussex County, that agency is First State Community Action Agency, Inc. (302) 856-7761.
Also, you may call the Office of the State Banking Commission at (302) 739-4235 in Dover or the Office of the Attorney General Consumer Protection Unit in Wilmington at (302)-577-8600.
You must build a file consisting of your pay stubs, layoff notices, medical bills, and any other papers that document your income. These papers may help justify any changes in your loan.
Make copies of all documents you provide to the lender. Keep track of all papers.
When talking to the lender, ask to speak to the "loss mitigation department." These are the people who have the power to assist you.
You may ask the lender to waive prepayment penalties for refinancing. Some may consider this if there is a possibility of the being paid off. A default on your part is also expensive for the lender and they want to try to avoid it if they can.
Be careful and read all agreements before signing anything. This is where a mortgage counselor can be very helpful.