Are you having trouble paying your rent or mortgage?

If the answer is yes, then that answer is not surprising. Affordable housing has been a personal financial and national economic issue in the United States for several years.

Either as renters or homeowners, rising rent and higher interest rates for mortgages have resulted in some Americans having difficulty in keeping up with payments that allow them to keep their home. Notices from landlords or from mortgage lenders requesting contact with the home resident serve as formal notice that the problem of paying for the home is serious. For renters, an ultimate bad outcome of not staying current with payments could be eviction, while for homeowners there is the disheartening possibility of losing their home through the legal process of foreclosure.

According to the U.S. government agency, the Consumer Financial Protection Bureau (CFPB), “Foreclosure is when the lender takes back property when the homeowner fails to make payments on a mortgage. Foreclosure processes differ by state.” Often the foreclosed property is sold, either directly or sometimes through an auction process, to someone else, either an individual or a company. The end result of a completed foreclosure process is usually that the homeowner loses their home and their investment in it.

Foreclose can have a devastating effect on a person or family, and may be associated with, or contribute to, other harmful situations related to financial problems, such as bankruptcy or even homelessness. But foreclosure is not unavoidable; it does not have to be the inevitable result of an inability to stay current on mortgage payments. There are actions that can help in delaying or preventing home foreclosure.

Here are 13 suggestions for activities that may be able to help avoid foreclosure on a home

If you are unable to make your mortgage payment, several U.S. government agencies have useful advice that could potentially help homeowners facing foreclosure. Some of this information is shared from another government agency the U.S. Department of Housing and Urban Development HUD and the CFPB:

1. Contact your mortgage lender as soon as you realize that you have a problem making mortgage payments and you know it won’t get better soon. Delaying the conversation will not make the situation better, and engaging with the lender quickly could provide more time to manage the situation. Mortgage lenders do not want to take homes away from borrowers; foreclosure costs them time, money and effort and may negatively affect their finances. Lenders generally have some options to help borrowers through difficult financial times and allow them to keep their home, but first, early and honest communication is needed.
2. Don't ignore the problem and letters or other communications received from your lender. HUD says that “The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.” Letters from lenders may be legal documents that should never be ignored and might require a response from the homeowner within a specific amount of time. Failure to communicate with the mortgage holder could possibly accelerate the foreclosure process, so it is very important to open and respond to all mail from your lender—don’t delay your responses.
3. Review and learn your specific mortgage rights for your state. Get all your home loan documents and read them fully and carefully so you know exactly what actions your lender may take if you can't make some (or any of) your mortgage payments. Learn about your state’s foreclosure laws and foreclosure process timeframes by contacting your state’s government housing office.
4. Investigate and read about foreclosure prevention options from reputable information sources on the internet. Useful information about foreclosure prevention can be found from many online sources, including from HUD and the Consumer Financial Protection Bureau, such as this downloadable CFPB checklist on avoiding foreclosure.
5. Research government assistance programs for homeowners and start by contacting a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development funds free or low-cost housing counseling nationwide. These housing counselors can help homeowners understand federal and state foreclosure laws and their options, assist them to organize their finances and even represent the homeowner in negotiations with their lender, if this help is needed.
   
   HUD-approved housing counselors can be found throughout the country, or those in need can call (800) 569-4287 or teletypewriter (TTY) (800) 877-8339.
   
   Another federal government resource is the CFPB’s HOPE™ Hotline, which the agency states is open 24 hours a day, seven days a week, at (888) 995-HOPE (4673).
   
   For Federal Housing Administration (FHA) loans, call the FHA National Servicing Center at (877) 622-8525 for help working with a lender to avoid foreclosure.
   
   The U.S. government agency the Federal Trade Commission also has recommendations for avoiding foreclosure.
   
6. Seek professional help, including advice at no cost from non-profit finance specialists. There are both national and state non-profit organizations that provide informed discussions and recommendations from accredited housing counselors on dealing with possible foreclosure, and this advice may be available at little or no cost. For more than 10 years Delta Community Credit Union has worked with the industry-leading organization Balance™ to provide our members with free access to experienced, confidential financial education and personalized advice to help with their financial needs. Balance is a national financial education and coaching non-profit based in San Francisco, California.
   
   Balance™ can assist Delta Community members with confidential, no-cost financial counseling services, including home foreclosure prevention counseling. This counseling might be able to help homeowners take advantage of early mortgage delinquency intervention and may give them time to try to find alternatives to foreclosure and potential loss of a home.
   
   Visit the Balance™ website to learn about their education and assistance programs. Members can also speak with certified credit and housing counselors to get personalized guidance, which starts by connecting with a Balance™ Financial Coach about their specific situation. Contact a Balance™ Financial Coach by calling 1-888-456-2227 to speak with a financial coach.
   
   Please note that the services offered through Balance™ are separate and distinct from any business conducted with Delta Community and are not guaranteed by, nor are they obligations of Delta Community Credit Union.
7. Try to work out a revised payment plan for your mortgage directly with the lender. You may be able to defer paying the mortgage for a few months with no interest or fee penalty, or you may be able to temporarily lower the amount of each month's payment without a penalty. Contact your loan provider to find out if they willing to offer any modifications on the loan terms instead of foreclosing on the property.
8. Rigorously manage your spending to prioritize your mortgage. After essential spending for personal healthcare, another top priority should be maintaining legal ownership of your home. It may be necessary to make very tough choices to cut back on other expenses and delay less important bills so that the monthly mortgage debt obligation is met.
9. Use your other assets and possessions to help make mortgage payments. Jewelry, cars, boats, motorcycles, jet skis, furniture, antiques, electronics, sporting goods, clothing, musical instruments and collectible items are all possessions that could be sold for additional funds, either online, in local store or through social media sites—but sellers should be cautious that they are using legitimate sites that won’t try to cheat or scam them. If you have investments and need cash, consider very carefully whether investment assets that have lost value can be sold off to provide money for the mortgage. Selling off an investment that is worth less than when purchased may also provide the opportunity to lower your taxes; you should discuss all possible selling decisions of investments with a financial advisor before taking any action.
10. Consider refinancing the mortgage to lessen monthly payments by getting a lower interest and making the length of loan longer—there are more payments but they can be smaller. If interest rates are similar to or lower than what you have with your current mortgage, refinancing may be a long-term approach to lowering payments, but only if you can afford the initial costs of the new mortgage. Lower interest rates and an extended term of the loan often result in more but smaller monthly payments.
11. Consider a personal loan from a family member or friend using a written, legal contract and not a “handshake” agreement. Difficult circumstances can require difficult decisions and actions, including overcoming reluctance to ask for monetary help from family or friends. If a personal loan is available to help pay a mortgage from someone you know and trust who can afford—and is willing— to make the loan, then first consult an attorney to create a detailed, specific loan contract so that the terms of loan are known, understood and not open to widely different interpretations by the loaner and the loanee. A homeowner should treat the personal loan from someone they know with the seriousness of a business loan; they are both financial obligations that must be met according to a schedule of payments.
12. Consolidate other debt—such as credit card balances—with a personal loan from a financial institution that has a lower interest rate than other debts. One option to look at closely is taking out a loan to consolidate other types of debt, so that for your combined debt, your monthly interest payments will be lower—this could free up more money for mortgage costs. This is a situation where more debt may be able to help lower your overall debt, but this option needs to be analyzed carefully to determine if it meets your specific needs. It may be that another loan would allow you to consolidate—package together—some other debts, pay them off and then have a lower total interest rate for the personal loan, but research this thoroughly to see if it would lower some of your debt payments other than the mortgage. Discuss this approach with a financial advisor at your bank, credit union or other financial services provider to determine if a personal consolidation debt would be beneficial to your situation.
13. Be very, very cautious about losing your property to a “foreclosure recovery, avoidance or prevention” company—they may be scammers that prey on scared victims. There are numerous state and federal agencies, as well as non-profit organizations, which will help with preventing foreclosure on a home for no cost or a minor cost that covers a few very specific activities. There are also legitimate, for-profit businesses that offer help avoiding foreclosure, but a homeowner should first use all the free assistance available to them before considering spending more money that isn’t being used to pay the mortgage. Be cautious of scammers offering unrealistic foreclosure assistance promising a very unlikely, easy solution to a difficult situation. Be extremely wary of any foreclosure assistance company that offers help but only if the homeowner first is asked to sign over title to their home or to sign other contractual documents that they don’t understand. Homeowners should not sign any legal document—including contracts for services—without reading and understanding all the terms, conditions and possible outcomes, and they should also first get professional advice from an attorney, an experienced housing real estate professional (including one that may work for a non-profit organization) or a HUD-approved housing counselor.

In some situations, Delta Community may be able to assist a member attempting to prevent foreclosure

Delta Community believes in helping its members whose income or employment status has been adversely affected. If a member is in a challenging financial situation because of an involuntary furlough, job change or layoff, voluntary leave of absence, severance or early retirement program or some other circumstance that adversely affects their finances, then they may be eligible for the Credit Union’s Member Assistance Program, which may be able to help with certain Delta Community loans, including mortgages.

If a member needs to take part in this program, they should call us at 800-544-3328. For assistance with first and second Mortgage Loans and Home Equity Lines of Credit, contact us at 404-677-8688.

For members who have questions about what the program offers, please read the Member Assistance Program FAQ for help answering them.