RICHMOND — An increasing number of borrowers are at risk of losing their homes because they can no longer afford to make their mortgage payments. The State Corporation Commission’s Bureau of Financial Institutions reminds Virginians that there are steps they can take to reduce their chances of losing their home to foreclosure.

The Bureau reminds homeowners who cannot make their mortgage payments to consider contacting their mortgage lender. Do not ignore phone calls or letters from your lender since delays may only increase your chances of losing your home. If your lender forecloses on your home, you will have to find somewhere else to live and may encounter difficulty qualifying for credit later on.

Since foreclosure is a costly process that does not necessarily result in a lender recouping the total outstanding balance on a mortgage loan, lenders typically want to avoid foreclosure. Lenders are often willing to work with you to avoid foreclosing on your home; however, you must be willing to contact your mortgage lender directly and discuss your problems with them. Your mortgage lender may be willing to agree to a forbearance (allowing you to make partial payments or skip payments) or loan modification (adjusting your interest rate, payment schedule, or other terms of your loan) to enable you to retain ownership of your home.

The Bureau of Financial Institutions warns homeowners facing forclosure to be wary of credit-repair scams or other solicitations that offer to assist you in stopping or preventing forclosure. Check with a lawyer or your mortgage lender before signing any contract or entering into any deal involving your home.

There are a number of resources available to consumers who are in danger of missing payments on their mortgage loans and possible foreclosure. The United States Department of Housing and Urban Development (HUD) offers a helpful publication entitled “How to Avoid Foreclosure” on its website at www.hud.gov/foreclosure/index.cfm. Other resources include HUD-approved counseling agencies (1-800-569-4287), Housing Opportunities Made Equal (804-354-0641) and NeighborWorks (1-888-995-4673).

Additional information is also available on the Bureau of Financial Institutions website at www.scc.virginia.gov/bfi/ or by calling the Bureau at 1-800-552-7945 (toll-free in Virginia) or in Richmond at (804) 371-9657. The Bureau cannot provide legal advice, nor can it stop or prevent a foreclosure. However, it can assist consumers with questions and complaints involving licensed mortgage lenders and brokers, as well as state-chartered financial institutions.

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