• Officials & Departments
  • Online Services
  • Courts & Sheriff
  • County Parks
  • Property Resources
  • Documents Forms

Foreclosure Prevention

Tips to Avoid Mortgage Foreclosure

  • Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your home.

  • Contact your lender as soon as you realize that you have a problem. Lenders do not want your home. They have options to help borrowers through difficult financial times.

  • Open and respond to all mail from your Lender. The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notices of pending legal action. Failure to open mail will not be an excuse in foreclosure court.

  • Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about foreclosure laws by contacting the Michigan State Housing Development Authority at 517-373-8370. Review foreclosure timelines here.

  • Understand foreclosure prevention options. Valuable information about foreclosure prevention (also called loss mitigation) options can be found at the Federal Housing Administation website.

  • Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development (HUD) funds free or low-cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances, and represent you in negotiations with you lender if you need this assistance. To find a HUD approved counselor click here, or call 1-800-569-4287 or TTY 1-800-877-8339.

  • Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses that you can eliminate such as cable TV, membership or entertainment.

  • Don't lose your home to foreclosure recovery scams. If any firms claim they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf you may well be signing over the title to your property and becoming a renter in your own home. Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved counselor. View Source

  • Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure preventions help, use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they often charge a hefty fee (often two or three month's mortgage payments). Contact your lender or a HUD-approved housing counselor to find out about free help that they can provide. Ottawa County has two local options:

Who Can Help?

Always check out Investors and seek advice from a counseling expert before signing anything. Good Resources That Are Free:

Credit Counseling

Neighborhood Housing Services
Federally funded grant to help all Ottawa County citizens.
Phone: (616) 935-3270
Email: ghhousing@grandhaven.org
Website: www.grandhaven.org/housingservices

Community Action House
Locally and state funded program to help homeowners in Ottawa and Allegan County.
Phone: (616) 738-1170
Visit their website

For a List of Other Counseling Services, visit www.hud.gov

Remember:

  • Don't lose your home and damage your credit history.

  • Call or write your bank immediately and be honest about your finances.

  • Stay in your home to make sure you qualify for assistance.

  • Arrange an appointment with a housing counselor (most are free).

  • Cooperate with the counselor or bank trying to help you.

  • Explore every alternative to keeping your home.

  • Beware of scams and predatory lenders.

  • Don't sign anything you don't understand.

Once you are in foreclosure you retain control of your property for 6 months, 12 months if you have more than 3 acres. During this time you can refinance or sell your home. Everyone has choices. When faced with foreclosure you must take advantage of all your choices.