Foreclosure Questions and Answers
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| Q. How can I find out who my lender is and how to contact them? |
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| A. The name of your lender (or servicer) and their address and phone number should be listed on your monthly mortgage statement or mortgage coupons. |
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| Q. What is the difference between a lender and a servicer? |
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A. When you first obtained your mortgage loan you worked with a lender. They provided the funds for your loan. A servicer collects your monthly mortgage payments and if you have an escrow account they also pay the taxes and homeowners insurance on your behalf. The servicer may be a different company than your original lender. The term lender and servicer are often used interchangeably, but you should always contact whatever company you are sending your payments. |
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| Q. What information should I have when I call my lender? |
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A. You should have your account number (from your mortgage statement or coupons), be able to briefly explain your situation, have a copy of your paycheck stub or other income information and a list of regular household expenses. |
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| Q. What is foreclosure? |
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| A. Foreclosure is a legal process where a bank or mortgage company can take back your home in order to satisfy your mortgage loan to them. If you fail to make your mortgage payments (including first mortgages, second mortgages, and home equity lines of credit) it can result in a foreclosure. A foreclosure can also be due to non-payment of real estate property taxes. |
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Q. How many payments do I need to miss before I lose my home? |
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| A. After one missed payment on your mortgage, you are in breach of your agreement with your mortgage lender. Although most lenders do not start foreclosure proceedings after only one missed mortgage payment, late charges apply and over time can add up. If you continue to miss your payments it will make it harder for you to catch up. Most lenders will start the foreclosure process after you are three payments behind. |
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| Q. My lender has started foreclosure proceedings. What should I do? |
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A. Immediately contact an attorney and/or a MSHDA approved foreclosure prevention counselor in your county. Many Michigan counties have lawyer referral services that can assist you in finding an attorney.
*for further information visit http://www.michigan.gov/mshda/0,1607,7-141-45866_47905-177818--,00.html |
