I always get asked this question a lot. So here it is.
Call your bank right now and ask if they can modify your loan. Be honest with them about your financial situation and ask if there are any options they can offer you in order to keep your home.
Get ready to provide the following:
Most recent bank statements
Pay check stubs
W2s
Hardship letter
Financial statement (that they will provide)
Get it to them as soon as possible and make sure you verify their fax number. Since the banks are inundated with files, make sure you put your loan number on each and every page before faxing it. Here's a tip for you, fax it 2-3 times and then follow up within 2-3 days to confirm that they have received it.
Once they receive it, depending on the bank and how busy they are, it may take a couple of days to a couple of weeks before they can review your file and get back to you. Make sure you keep on following up, also get ready to be on hold for several minutes before you talk to anyone, but don't give up. If you need any help or just don't have the time to do it, give me a call. =)
If you have any further questions feel free to email or contact me at 619-997-4118.
Are you in default (late 3 months)? Call FHA Secure at 1-800-CALL-FHA (225-5342)
More info on avoiding foreclosures go to http://www.hud.gov/
