Facing foreclosure, seek assistance

Banks or Lenders like to see financially trapped homeowners contact them before the loan is to reset at higher rate. Ask if the loan can be modified by fixing the rate below the scheduled reset amount or that borrower can qualify for forbearance - temporary reduction or suspension of payments. Homeowners can also ask community group or Realtor/ Loan officer to contact the lender on their behalf. Phone numbers of major lenders' loss mitigation dpt.'

HUD 800 569-4287. Housing and Urban Development sponsors housing counseling agencies throughout the country that offer advice at little or no cost.

HPF 888-995-4673 homeownership Preservation Foundation offers FREE foreclosure counseling or assistance and contact lenders.

ACORN Housing:(866) 672-2676 or (888) 409-3557. A nonprofit Organization has programs with some lenders to help borrower negotiate affordable loan payment, possibly prevent foreclosure.

IRS Questions and answers on the tax implications of home foreclosure and debt Cancellation