How should I deal with collection notices?
Open Your Mail. Immediately communicate your hardship to your lender. You will find sample hardship letters in the Arizona Foreclosure Task Force Workbook. Contact a housing counselor.
What does a housing counselor do?
Housing counselors act as an advocate on your behalf. They communicate with your lenders and servicers, with you, to find options that might save your house from foreclosure.
What will I need to bring when I meet with a mortgage or housing counselor?
- Written explanation letter detailing the reason for your mortgage delinquency. Be specific and include details, dates, etc.
- 30 days worth of your most current consecutive pay stubs
- Social Security or Pension award letters
- All W2's or 1099's for the past 2 years
- Complete tax returns for the past 2 years (If self employed, need most recent Profit & Loss statement.)
- All correspondence from all mortgage lenders
- Most recent mortgage statement from all lenders
- Copy of your Hazard Declaration page
- Copy of your most current Property Tax Statement from the county
- Copies of Note, Deed of Trust, Truth in Lending, Good Faith Estimate, and Final HUD settlement statement
- 2 months worth of your most current consecutive bank states. (All pages please.)
- A copy of your Notice of Trustee Sale, if applicable
Do I pay for this help?
No. HUD approved, non-profit housing counseling agencies offer free help. Find a HUD-approved housing counselor in Arizona. Be aware of scams and agencies that try to charge you for their services.
What are some of my options?
A temporary forebearance, a loan modification, a short sale or Deed in lieu (DIL) of foreclosure are options that can be explained to you by a housing counselor. Review important mortgage terminology.
Facing the Mortgage Crisis is part of CPB's Public Service Media Economic Response Initiative.