If you’re in Iowa and you’re worried about losing your home to foreclosure, here are four resources to contact as soon as possible.
- Immediately reach out to your loan servicer. Don’t put this off. Many borrowers are tempted to have a plan in place for getting current with their mortgage before calling their loan servicer. This is a huge mistake. The earlier you get in touch with your loan servicer, the more confident they will feel in your ability to repay your debt. Being upfront and easily accessible goes a long way to reassuring your lender that you desire and intend to pay back the money you borrowed from them to buy your home. If you’ve been avoiding this and feel like it’s too late, you’re wrong. Something is better than nothing. If you absolutely can’t bring yourself to get in touch, then move on immediately to Step 2.
- Connect with a state-sponsored financial counselor. Free financial and foreclosure avoidance counseling is available in all 50 states, including Iowa, and you can access it through Iowa Mortgage Help by navigating to their website or calling 877-622-4866. Whatever the reason is for your financial difficulty, they have heard it before and probably know of a way to help. They can give clever budgeting tips to help you manage your financial obligations without increasing your income. They can also connect you to other programs, such as utility assistance, that might free up money for your mortgage payment. A word of warning: financial counseling should always be FREE! Anyone who accepts cash for helping you save your home is a predator and should be avoided at all costs. If you have the energy for it, make a consumer complaint using this form from the Iowa Department of Justice, Office of the Attorney General. If you’re up in the middle of the night worrying about this, and you can’t get in touch with a financial counselor, then move on to Step 3.
- Head to the website of the Iowa Legal Aid organization. Their comprehensive FAQ covers almost everything you might need to know about facing foreclosure in Iowa in a conversational, approachable, and nonjudgemental way. It also explains the different options that you can ask your lender to accommodate, to help you prepare for the call. This fact sheet is another good place to start.
- Iowa Finance is also running a foreclosure and eviction prevention program in the wake of COVID-19. To be eligible, you must meet income requirements and be suffering financially as a direct result of COVID-19. Their mortgage assistance can cover up to four months of mortgage payments. Only two of those payments can be past due, however. The maximum grant awarded through this program is $3,000, paid directly to your mortgage loan servicer. Check your eligibility at their website. You must also participate in counseling and have a verified/approved budget.
Good, hardworking Iowans lose their homes every day. Whether you’re in default, pre-foreclosure, or facing a foreclosure sale, you don’t have to do it alone.