Timothy E. Lockhart - YOU HAVE OPTIONS: YOUR GUIDE TO AVOIDING FORECLOSURE

not sufficient to cover all costs. • You forfeit the ability to get a Fannie Mae (Federal

National Mortgage Association) mortgage. Fannie Mae is a government-sponsored enterprise and leading source of financing for mortgage lenders. If you do nothing in response to your foreclosure notice, your house and property will go to a foreclosure auction, which we will discuss in the next chapter.

POINTS TO REMEMB O REMEMBER:

• There may be time to save your home — if you act quickly. • “Walking away” from your mortgage and allowing your home to go into foreclosure can have severe consequences for your credit and future ability to purchase property. • Other options could be available to you, such as modifying your loan, negotiating a deed in lieu of foreclosure agreement, or conducting a short sale. It’s important to contact your lender early if you plan to enter into negotiations. • Use a HUD-approved foreclosure avoidance counselor and be wary of unsolicited offers to avoid foreclosure. A reputable attorney or real estate professional can be invaluable. • Foreclosure rules and guidelines vary by state. Familiarize yourself with your state’s requirements.