Don't Let Mortgage Troubles Turn Into Foreclosure

At CDLI, we understand the distressing reality that many homeowners face when confronted with the possibility of foreclosure. It's a situation that can be overwhelming and uncertain, but we're here to offer support and guidance every step of the way.

Our HomeOwnership Center, staffed with dedicated HUD-certified educators, is committed to providing personalized assistance to help homeowners explore their options and find the best path forward. We recognize the importance of ensuring that individuals are empowered with the knowledge and resources they need to make informed decisions about their homes and financial futures.

Recently, we spoke with several of our in-house experts to gain insights into the complexities of mortgage difficulties.

Why might someone fall behind on their mortgage payments?

Life happens.

And many homeowners like you can run into challenges that could lead to a mortgage crisis. And some of these problems are completely out of your control. They could include:

• Loss of a job 

• Unexpected medical expenses 

• Divorce 

• Condo or co-op assessment 

• Tax increase

• Mortgage rate adjustment 

• Unexpected home repair

And while it’s optimal to have an emergency fund for these unexpected costs, we know that’s not always possible.

What are the consequences of falling behind on mortgage payments?

If you fall behind on mortgage payments, the lender could tack on late fees and penalties and you could find yourself owing significantly more than you previously did.

Additionally, unpaid mortgage payments typically continue to accrue interest, increasing the total amount you owe. This can make it even more challenging to catch up on missed payments once you're able to resume making payments.

When should someone in a mortgage trouble or crisis come to see CDLI?

The sooner the better.

At CDLI, our HUD-certified housing educators are your advocates, guiding you through the complexities of the foreclosure process so you don't have to face it alone.

Sometimes homeowners feel like things are too far down the road and there’s nothing that can be done to solve the problem. However, we can help you, even in an advanced situation.

What can CDLI do to help?

The first thing we do is sit down with you and learn everything about what’s going on and look at all the relevant numbers with you. After that, we develop a personalized action plan based on the options that might be available to you and help you navigate the process.

Based on your individual circumstances, the personalized action plan could include applying for loss mitigation and pursuing an available workout option, such as a repayment plan or a loan modification. 

Also, at CDLI, your housing educator will escalate and advocate on your behalf where appropriate.

Why is talking to CDLI better than doing this on my own?

Working with a housing educator at CDLI gives you an advocate who is well versed in the process and have somebody there that can answer your questions.  

Foreclosure can be incredibly stressful. Having someone assist you in understanding your options without the pressure of directly contacting your lender is incredibly helpful. We will engage with your lender to clarify the available options, supporting and guiding you through the process.

When should I meet with CDLI?

If you feel that you’re struggling with financial aspects that could lead to foreclosure, CDLI offers a Financial Fitness Health and Wellness course. Our housing educators provide budgeting strategies and proactive financial guidance.

Additionally, we offer personalized foreclosure prevention counseling to address your specific needs and help you navigate through challenging times.

Are there other partners CDLI can bring in?

There are. 

There are other agencies in New York State such as legal advocates. So as part of the action plan we develop, we could refer you to one of these legal agencies who can help you at no cost. 

And how much does it cost? 

At CDLI, we provide HUD-certified housing counseling at no cost to the homeowner.

What languages do the counselors at CDLI speak?

We have counselors who speak English, Spanish and Creole.

In summary, what are the three most important things a homeowner in a mortgage crisis should know?

1. Do not stop communicating with your lender. Keep in touch with your lender and let them know that you want to satisfy the requirements of the mortgage and that it is your intention to remain in your home.

2. We are here to educate. CDLI's housing educators are here to let you know all of your options. If you are unsure of next steps, reach out to us.

3. Check your mortgage statement regularly. Do you have a fixed interest rate or an adjustable-rate mortgage? Constantly checking your mortgage statements and making sure that you understand what's expected of you will go a long way. 

Reach out.

It's never too early to reach out and get back on track. Give us a call today, and we'll connect you with the right counselor, 100% free of cost. Our phone number is (631) 471-1215 or email us at info@cdcli.org.

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