- 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.
Sussex County
