No matter what the reason for the difficulty in paying your mortgage, the best thing you can do for yourself is to take control of the situation. By contrast, the worst thing you can do is to bury your head in the sand and do nothing. Louisiana Homeowners facing foreclosure should keep these four tips in mind when taking control.

  • Stop avoiding phone calls. If you know, you might have a problem, call your loan servicer right away and explain the situation. Showing your intention to honor the loan agreement before you fall behind is an encouraging sign, from the perspective of your mortgage holder, and may make them more likely to work with you. Be specific when you call — say you want help avoiding foreclosure. You’re not the first to call, and you won’t be the last. The phone number is on your monthly statement. If you don’t have a monthly statement handy (it’s not uncommon for people to avoid mail when they are having financial difficulties), then search for the phone number online
  • Get help from the experts. Throughout Louisiana, there are state and federally funded housing counseling agencies. These helpful organizations are approved to help you develop a plan of action tailored to your unique situation. This handy tool from the Consumer Financial Protection Bureau can help you find an agency near you. Their representatives are experts in all the available programs and have seen it all before. This help is 100 percent, absolutely free. You should NEVER pay for help avoiding foreclosure.
  • Avoid Scams. The Attorney General’s Office wants to hear about any scammers you encounter. When you’re desperate to the right your financial ship, it can be tempting to believe things that you know are too good to be true. Watch out for these common signs of a scam:
    1. You’re told to stop paying your mortgage or send the payment somewhere else.
    2. You’re given any kind of guarantee.
    3. You’re asked to pay for help.
    4. You’re asked to sign documents you don’t understand, particularly signing over the title to your home
    5. You’re offered a forensic audit.
  • Know your rights. In some states, there is a ‘right to redemption’ — meaning a limited period where you can reclaim your home. In Louisiana, there is no such right, and foreclosure can happen in as little as 60 days. Here’s what to expect.
    1. When you’ve missed four payments, your lender will start foreclosure proceedings in the court
    2. The court will notify you, and you have three days to pay what you owe or work out a deal. Unlike in some other states, there is no mediation program to participate in.
    3. Your home must be advertised for sale for at least 30 days.
    4. After those 30 days have expired, the house will be sold to repay your debt.
    5. In case the sale of your home is not enough to cover the money that you borrowed, Louisiana does allow for what is called a ‘deficiency judgment.’ As long as your house was properly appraised, you won’t be held accountable for monies over and above what your home sold for.