Take action now to prevent foreclosure

Act quickly to prevent foreclosure As mortgage delinquencies keep rising, so do cries for help from distressed homeowners.

Housing Opportunities Made Equal said it gets an average of 250 new distress calls per month, up from 170 calls a year ago, from consumers trying to prevent a foreclosure.

Callers most often ask how they can reduce their mortgage payment to an amount they can afford and how they can take advantage of the federal government's new Making Home Affordable program, said Mike Burnette, spokesman for the local housing advocacy group.

Also, since June 29 when the group launched "How to Help Yourself Avoid Foreclosure" on its Web site, that self-help kit has had 530 views, he said.

Homeowners complain that their mortgage lenders aren't returning calls, he said. "Now, we are starting to get backed up."

That is why the group produced the kit, to help consumers do everything they can to help themselves while waiting for help, he said.

If you are behind on your mortgage and feeling overwhelmed, act now, the group advises. The sooner you take action, the better chance you will have to find a solution that will work for you.

Here are some steps to take:

• Download "How to Help Yourself Avoid Foreclosure." Follow the link at TimesDispatch.com to download a copy. Use the public library's computer if you don't have one.

• Don't ignore mail from your mortgage company. That will make things worse. You need to know what your lender is asking.

• Work on a budget. Your financial institution will ask about your budget. Figure out what expenditures you can delay or eliminate from your budget -- then take action.

• Try to save some money. Earmark some to go toward your past-due payments. It shows your lender that you are serious about repaying your debt.

• Look for ways to increase your family's monthly income. Consider taking on a tenant or roommate or working a seasonal job to help pay the mortgage. Cut out cable or other non-necessities until you get caught up.

• Contact your mortgage company. It may agree to help you modify your loan. Ask for the loss mitigation or loan workout department. Find out if you qualify for help under the federal Making Home Affordable programs.

• Watch out for scams. Opportunists are looking to scam people who are behind on their mortgage payments. Call the Better Business Bureau at (804) 648-0030 or the Office of Consumer Affairs at (804) 786-2042 to check out the company's reputation.

Don't pay any company before it has performed a service. Be wary of quick-fix rescue plans. Don't divert your mortgage payments to a so-called mortgage rescue company.

• Seek help from a housing-counseling agency approved by the U.S. Department of Housing and Urban Development. It can tell what options are available to you, help you come up with a mortgage repayment plan and help you contact your lender.

To find the agency nearest you, call HUD at (800) 569-4287 and provide your ZIP code.

Call Housing Opportunities Made Equal at (804) 354-0641. A few other HUD-approved housing counselors in Richmond are ClearPoint Credit Counseling Solutions at (804) 222-4660, Commonwealth Catholic Charities at (804) 285-5900 and the Urban League of Greater Richmond at (804) 649-8407.

Contact Iris Taylor at (804) 649-6349 or . Follow her on Twitter @RTDIrisTaylor.