Foreclosure Information

This information is provided for reference only.

Michigan Municipal League Resource Kit: This publication is a community guide to meet the challenges of foreclosures. Complete with on-line resources, local community support and assistance.

Royal Oak Public Library Resources: The Royal Oak Public Library has collected some helpful information for residents who may be fearful of foreclosure. It includes excellent resources from the State of Michigan, Oakland County, SEMCOG, HUD, the Federal Reserve Board, and a list of area personal counseling services provided by governmental as well as not-for-profit agencies.

Tips for Avoiding 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 house.
• Contact your lender as soon as you realize you have a problem. Lenders do not want your house. They have options to help
  borrowers through diffi cult fi nancial times.
• Open and respond to all mail from your lender. The first notices you receive will offer information about foreclosure prevention. Later mail may include important notice 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.
• Understand foreclosure prevention options. Valuable information can be found at http://www.hud.gov/foreclosure/.
• Contact a HUD-approved housing counselor. The U.S. Department of Housing and Urban Development funds free or lowcost counselors nationwide, who can help you understand the law and represent you in negotiations with your lender if needed. For a list of Michigan counselors, go to www.hud.gov or call (800) 569-4287.
• Prioritize spending. After healthcare, keeping your house should be your fi rst priority. Review your fi nances and see where you
  can cut spending in order to make your mortgage payment.
• Use assets to pay down mortgage debt. Sell assets such as a second car or jewelry for cash to help reinstate your mortgage. This
  demonstrates to your lender that you are willing to make sacrifi ces to keep your home.
• Avoid foreclosure prevention companies. Don’t pay a fee to a for-profit company when you can receive services for free from your
  lender or a HUD approved housing counselor.
• Look out for foreclosure recovery scams. If a firm claims they can stop your foreclosure immediately if you sign a document
  appointing them to represent you, beware—you may be signing over the title of your property.

Tips Source: U.S. Department of Housing & Urban Development - www.hud.gov/foreclosure

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