FREQUENTLY ASKED QUESTIONS continued
9. Should I Still Contact You if I Have Waited Too Long and My Property Has Been Referred to an Attorney for
Yes, the sooner the better!
10. What if My Property is Scheduled for a Foreclosure Sale in the Future?
If we receive a complete Borrower Response Package 37 calendar days or less before a scheduled foreclosure sale,
there is no guarantee we can evaluate you for a foreclosure alternative in time to stop the foreclosure sale. Even if we
are able to approve you for a foreclosure alternative prior to a sale, a court with jurisdiction over the foreclosure
proceeding (if any) or public official charged with carrying out the sale may not halt the scheduled sale.
11. Will My Property be Sold at a Foreclosure Sale If I Accept a Foreclosure Alternative?
No. The property will not be sold at a foreclosure sale if you accept an offer for an alternative to foreclosure and
comply with all requirements.
12. Will My Credit Report Be Affected by My Late Payments or Being in Default?
The delinquency status of your loan will be reported to credit reporting agencies as well as your entry into a Repayment
Plan, Forbearance Plan, or Trial Period Plan in accordance with the requirements of the Fair Credit Reporting Act and
the Consumer Data Industry Association requirements.
13. Will My Credit Score Be Affected if I Accept a Foreclosure Prevention Option?
While the effect on your credit will depend on your individual credit history, credit scoring companies generally would
consider your entry into a plan with reduced payments as increasing your credit risk. As a result, entering into a plan
with reduced payments may adversely affect your credit score, particularly if you are current on your mortgage or
otherwise have a good credit score. However, bringing your loan current through a reinstatement, Repayment Plan or
loan modification and continuing to make timely payments may improve your credit score over time.
14. Is Foreclosure Prevention Counseling Available?
Yes, HUD-approved counselors are available to provide you with the information and assistance you may need to avoid
foreclosure. You can use the search tool at
to find a counselor near you.
15. I Have Seen Ads and Flyers From Companies Offering to Help Me Avoid Foreclosure for a Fee. Are These
Companies on the Level?
Foreclosure prevention has become a target for scam artists. We suggest using the HUD Web site referenced in
question 14 to locate a counselor near you. Also, please refer to the attached document called “Beware of Foreclosure
Rescue Scams” for more information.
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