Repayment Problems, Possibly Foreclosure
Tips for current and potentially distressed homeowners and borrowers

Don't put your home or credit at risk.

1. Contact your lender ASAP if you have trouble paying your loan.  Most lenders want to help you keep your house.  
   
   
2. Respond to all mail from your lender.  “I didn’t open my mail” isn’t a valid excuse in a foreclosure.
   
   
3. Get information & help.  Call the free Colorado Foreclosure Hotline (consumer help line formed/operated by state government, nonprofits and lenders) at 877.601.HOPE now or www.coloradoforeclosurehotline.org (web site active in early September 2007).  The helpful Hotline (certified by the U.S. Dept. of Housing & Urban Development) has helped thousands of Coloradans.
   
   
4. Know your status.  Read your loan papers; understand the consequences, options and procedures.
   
   
5. Prioritize your spending.  Keeping your home should be your top priority after health care – even before paying off other debt, and especially before discretionary expenses (cell phone, cable, shopping…).
   
   
6. Avoid foreclosure-prevention scams.  Don't pay fees for foreclosure help, don't sign a document; use nonprofit counselors for foreclosure help.  Watch out for “equity-skimming” scams where a “buyer” offers to repay your mortgage if you sign over your deed and move out.  You’re left with the debt and no house.