1. Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Know your mortgage rights. Learn about the bankruptcy and foreclosure laws and timeframes in your state by contacting the State Government Housing Office.

3. Understand foreclosure prevention options. One of the main foreclosure prevention options currently being used is a Loan Modification. Beware of several loan modification scams are now circulating. Only a State approved attorneys may legally modify your loan with your lender.

4. Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate.

5. Use your assets. Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

Consumer Scam Alerts

HIDDEN MONTHLY FEE'S
Beware of cunning and scrupulous attorneys that have hidden clauses buried in the fine print that require a certain % of savings, as high as 30% as an example, if they successfully modify your mortgage to a lower payment. You should only pay one fee--otherwise you could be forced to pay potentially hundreds of dollars a month for the life of the loan. Always read the whole contract in full or have a professional, family member or friend assist you if you are unable to.

FORECLOSURE RESCUE SCAMS
As property values continue to decline across the country, fraudulent “foreclosure consultants” (con artists) target homeowners who are behind on their mortgage payments. Here's what you can do to avoid becoming a victim:

1 .DO NOT pay your mortgage payments to someone other than your lender , even if they promise to pass the payment on to the lender. Fraudulent foreclosure consultants often keep the money for themselves and disappear.

2. DO NOT sell your house or transfer the title to the “foreclosure rescuer” . These fraudulent foreclosure consultants often promise that if you transfer the title to them, you may stay in your home as renters and buy it back later. This is a common scheme used to evict homeowners and steal all or most of their home's equity.

3. DO NOT sign any documents without reading and understanding them first. If the document is too complex, seek advice from a lawyer or an approved, trusted financial counselor. Never sign documents with blank spaces that can be filled in later by the other party or one that contains errors or false statements, even if someone promises to correct them later. Get promises in writing and keep copies of all contracts you sign. Many homeowners think that they are signing documents for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership to the "foreclosure rescuer".

4. DO NOT pay anyone to fix your credit. If you've lost your job or your income has changed and you are falling behind in your loan payments – contact your lender or a free credit counseling serivce like ACCEL. They are the best prepared to help you re-negotiate your monthly payments and salvage your credit rating.

BANKRUPTCY FRAUD
There are several scams circulating that are abusing the bankruptcy laws. For example, a con artist may offer to obtain refinancing or negotiate a payment plan with your lender and even file a bankruptcy case in your name, without your knowledge, as a part of the scam.

In another kind of scam, a con artist may ask you to give a partial interest in your home to one or more persons. Each holder of a partial interest can then file bankruptcy, one after another. The bankruptcy court will issue a “stay” order each time to stop foreclosure temporarily. However, the stay does not excuse you from making payments or from repaying the full amount of your loan

REFINANCE FRAUD
Beware of people posing as mortgage brokers or lenders and offering to refinance your loan so you can afford the payments. Con artists will trick you into signing documents for a new loan but in fact you are signing over the ownership of your home. Always read and understand reading of all documents.

WHAT TO DO IF YOU'RE A VICTIM
If you think you are involved in any of these scam, you may be a victim of a crime and need to file a complaint with your States' Attorney General's Public Inquiry Unit. Reporting con artists and suspicious schemes helps prevent others from becoming victims.

Many fraud abuse cases start out as free consultations by “counselors”. Do not give out personal information on a website of email. These could be scams. Talk to a Community Financial Representative at 877 937-2328 if you need help or email us at loanhelp@cfcu.org