Be aware: Avoid foreclosure rescue or loan modification scams!
Do not give any money upfront to any individual or organization that claims they can help save your home from foreclosure or get your mortgage loan modified.
If you or someone you know is a victim of fraud, please report it to the State of California Department of Justice, Office of the Attorney General.
When you are at risk of falling behind on house payments, you can:
1. Negotiate a loan modification with your mortgage lender
- Write, sign, and date a hardship letter to your lender. It should include copies of:
- Bank statements
- Paystubs
- Tax returns
- Any other financial documents your lender requests
2. Seek help from a free HUD-approved housing counselor
- Refer to HomeownershipSF.org/Foreclosure-Prevention for the list of agencies.
- Your counselor can help you negotiate with your mortgage lender.
- Your counselor will help you navigate potential options, which may include:
- Reinstatement (Cure)
- Repayment Plan
- Loan Modification / HAMP (Home Affordable Modification Program)
- Forbearance Agreement (Learn how to seek mortgage forbearance due to COVID-19)
- Special Forbearance
- Refinance / HARP (Home Affordable Refinance Program)
- MOHCD’s Homeowner Emergency Loan Program (HELP)
If keeping your home is no longer a realistic option, talk to your housing counselor and lender about:
- Selling the property
- Short sale (only if your outstanding loan exceeds the value of the property)
- Deed-in-Lieu of Foreclosure
- Transition assistance or cash for keys
Note for MOHCD owners
If you used MOHCD programs to buy your home, it is a better option to sell the property than to allow it to go into foreclosure. You may lose all appreciation in the home if it goes into foreclosure.
Buying mixed-income below-market-rate (BMR) units in foreclosure
Income and occupancy restrictions on mixed-income BMR units survive foreclosure. Anyone who buys one of these units must fulfill MOHCD eligibility requirements, even in foreclosure.
We advise the public to review Title Reports when buying property in foreclosure. The status of the unit will be listed there.
Other organizations that can help with foreclosures
-
Foreclosure Prevention
Information provided by HomeownershipSF.org -
The Foreclosure Process
Information from HUD -
Making Home Affordable
Federal-level mortgage help from US Treasury and HUD -
Know Your Options
Financing information by Fannie Mae