Yes! Since the number of foreclosure counselors is limited, we encourage you to contact your lender directly IF you feel comfortable and confident you have all the information you’ll need about your current mortgage, the options available to you for refinancing or modification and your rights under the new Michigan 90-Day law. This website is designed to provide you with everything you’ll need except the information about your current mortgage. Even if you eventually decide to contact a foreclosure counselor to assist you, the more you know and have prepared, the less time you will need with the foreclosure counselor and the faster things should move.

If you want to handle this on your own, here are some pointers:

General Tips:

Open lines of communication with your lender. The best thing you can do to avoid losing your home is to open the lines of communication between you and your lender. This means:

1. Open ALL your mail to make sure you are aware of anything sent to you from your lender or their legal counsel.  You may not recognize the name of this legal firm or associate it with your lender. 

2. Contact your lender early on. The sooner you make them aware your situation and the reasons behind it, the better your chances of working something out.  Without a call, there is no way to find a solution. Make sure you keep a written record of all your communication with your lender. Note the date, time and name of the person with whom you spoke. Keep this in a file along with all correspondence from your lender.

When you receive the letter from your lender indicating you are in default of your mortgage loan . . .

Do not ignore the seriousness of the situation. It requires you to act immediately. 

Carefully read the default letter from your lender and find the telephone number to the Loss Mitigation Department and the name of the representative assigned to your case. The employees in the Loss Mitigation Department typically are the only individuals with the mortgage company that have an incentive to find a solution other than foreclosure for your loan.

Thoroughly review your loan to find the terms of your loan, for example, prepayment penalty, 15-year, 30-year, fixed rate, adjustable rate, etc.  Write down the dates and amounts of your last twelve payments and evaluate our current budget situation to determine the amount of mortgage payment you can afford.

Contact the Loss Mitigation department and discuss your loan situation.  Be sure to understand completely why the mortgage company sent you the default letter.  Than ask if the mortgage company has begun foreclosure proceedings on your account.  If you think payments you made are not being posted to your account, explain the dates and request a history of your account to compare to your cancelled checks.

If you are late with your payments, explain the reasons, such as loss of employment or reduction in employment hours.  Then ask the mortgage company for a written explanation of the funds required to bring your account current.  Ask if company management would approve a hardship program such as a repayment plan, a loan modification, a refinance, a forbearance agreement, a short sale, or something similar.

If you think there were misrepresentations or fraud regarding your mortgage loan, contact OFIR 1-877-999-6442 (www.michigan.gov/ofir) or the statewide number for the FBI – (313) 965-2323. Locally, you can also call a FREE legal services attorney Legal Services of South Central Michigan: 

·         Jackson and Hillsdale Counties: (800) 676-9488 or (517) 787-6111

·         Lenawee County:  (888) 251-1598 or (734) 241-8310

Community Action Agency
 (800) 491-0004

Jackson Affordable Housing
(517) 788-4626

Community Action Agency
 (800) 438-1845

Community Action Agency
(800) 750-9300