• DYE CULIK PC | Consumer Protection Division

Foreclosure Prevention Checklist Gives Tips for Homeowners Facing Mortgage Issues

Updated: Jan 22

Foreclosure Prevention Checklist

A helpful foreclosure prevention checklist is available for free to help consumers who are having problems paying their mortgages and who want to avoid foreclosure.

The checklist was created by the National Consumer Law Center, one of the leading non-profit consumer advocacy groups in the country. It is part of their Foreclosure Prevention Counseling publication.

Before falling behind, homeowners are advised to keep all their mortgage documents in a safe place, keep records of all payments, and pay high-priority bills such as food, utilities, and mortgages.

If homeowners feel they are about to fall behind on their mortgages, they are advised to create a budget, reduce expenses, and, if possible, try to increase income by reducing voluntary deductions from their paychecks.

And, after actually falling behind on their mortgages, homeowners are advised to be proactive. It is vital to try to get help as soon as possible. In many cases, banks may be able to do loan modifications under programs like the Home Affordable Modification Program or under so-called “in house” loan modifications.

Additionally, under Massachusetts law, banks are required to automatically send homeowners notice of the right to apply for a loan modification for some loans.

Other alternatives to foreclosure besides a loan modification include a forbearance (a temporary payment reduction), a short sale, or a deed in lieu of foreclosure.

The NCLC’s checklist may prove helpful to borrowers who are at any stage of dealing with their banks.

Our office has helped many Massachusetts homeowners avoid foreclosure through all of these options — and, with litigation against most major banks related to violations of consumer protection laws. Contact us for a free consultation if you are experiencing mortgage issues. DYE CULIK PC is a consumer financial protection law firm located in North Carolina and Massachusetts. We help consumers with mortgage related issues, foreclosure defense, loan modifications, and mortgage litigation.

The checklist is available here: Homeowner’s Checklist for Avoiding Foreclosure