AARP lawyer James T. Sugarman says "there are dozens
of ways to save your house from foreclosure" but
that those in desperate times too frequently jump at bad
deals.
His
rule of thumb is, "Never do business with anyone
who comes to your
door or calls you out of the blue or sends you a flier.
It's so bad out there that you can't afford to trust a
stranger."
If
you're facing foreclosure:
1.
Look into renegotiating the loan with the lender or working
out a repayment plan.
2.
If you can afford it, get a lawyer from the local bar
association referral program or a lawyer recommended by
a trusted friend to help fight the foreclosure. If you
have a low income, contact the local legal services network.
3.
Contact a government-approved housing counselor. Counselors
are listed by state at www.hud.gov, the Web site for the
Department of Housing and Urban Development.
4.
File a Chapter 13 bankruptcy to reorganize your debts.
That will stop a foreclosure. But you must keep up the
mortgage payments during reorganization. Be sure you get
a reputable bankruptcy lawyer. (Some con artists offer
to file bankruptcy petitions for a homeowner, but never
file the appropriate follow-up paperwork.)
5.
If you suspect the lender won't agree to cooperate or
has included abusive terms, contact the local licensing
regulator, consumer protection agency or federal banking
regulators.
6.
If you think you have been scammed:
a) You are over the age of 60 years, living on a low income,
contact AARP's legal counsel for the elderly.
b)
Contact HUD's National Servicing Center at 888-297-8685.
The center refers callers alleging scams to local authorities
and HUD-approved agencies, as well as the Better Business
Bureau.
7.
Seek
a temporary restraining order in your state court.
Before
the foreclosure notice comes:
8.
Elderly homeowners on fixed incomes can apply for reverse
mortgages, the kind for which you draw money against the
equity in your house for as long as you live rather than
having to pay a mortgage.
Such
loans are fairly complicated, but certified housing counselors
are very familiar with them. AARP's Web site offers information
at:
AARP
Federal
Trade Commission
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