Mortgage Payment Challenges: What Vermont Homeowners Should Do Next

89 Main Street, Montpelier, VT 05620 - 3101
(p) 802-828-3301 | http://www.dfr.vermont.gov/ Mortgage Payment Challenges: What Vermont Homeowners Should Do Next A Guide for Vermont Homeowners Mortgage payment difficulties can happen for many reasons, including job loss, illness, reduced income, divorce, unexpected expenses, or changes in housing costs. If you are struggling to make payments or are concerned that you may struggle in the future, taking action early can help preserve your options. This guide outlines practical next steps for Vermont homeowners, explains available resources, and provides information about how the Vermont Banking Division may be able to assist. WHICH SITUATION BEST DESCRIBES YOU? Start with the section that best matches your current situation. The sooner you act, the more options may be available.

1. I am current on my mortgage payments, but I am worried I may fall behind.

• Examples may include job loss, reduced income, divorce, illness, unexpected expenses, or an upcoming
  interest rate adjustment.
• Contact your lender or mortgage servicer before you miss a payment.
• Explain your situation and ask whether payment relief, loan modification, or other assistance options
  may be available.
• Explore refinancing options if appropriate.

2. I have already missed payments or am behind on my mortgage.

• Contact your lender or mortgage servicer immediately.
• Ask about available loss mitigation options.
• Loss mitigation options may include a repayment plan, loan modification, forbearance, or other
  alternatives offered by your lender.
• Do not ignore letters, notices, or phone calls regarding your mortgage.

3. My lender has started a foreclosure action.

• Read all court and lender documents carefully and pay close attention to deadlines.
• If foreclosure mediation is offered, respond as quickly as possible.
• Mediation may provide an opportunity to discuss alternatives with your lender.
• Consider your long-term financial circumstances and housing options.

HOW THE VERMONT BANKING DIVISION MAY HELP
The Vermont Banking Division does not provide grants, mortgage assistance funds, or direct financial assistance to help make mortgage payments. We cannot stop a foreclosure, intervene in court proceedings, or provide legal advice. However, we may be able to:

• Provide general information about mortgage servicing and foreclosure processes.
• Answer questions and direct consumers to additional resources.
• Review complaints involving entities regulated by the Vermont Department of Financial Regulation.
• When appropriate, assist consumers in communicating concerns to a regulated company.
  Depending on the circumstances, we may be able to review concerns regarding whether a regulated entity complied with applicable laws and regulations. BEWARE OF FORECLOSURE RESCUE SCAMS
• Guarantees they can stop a foreclosure.
• Requests large upfront fees before providing assistance.
• Asks you to transfer ownership or sign over the deed to your home.
• Pressures you to sign documents you do not understand.
• Advises you to stop communicating with your lender.
  If an offer sounds too good to be true, it probably is.
  ADDITIONAL RESOURCES
  Vermont Judiciary: https://www.vermontjudiciary.org CFPB – Avoiding Foreclosure: https://www.consumerfinance.gov/ask-cfpb/does-my-mortgage-servicer￾have-to-help-me-avoid-foreclosure-en-216/ Homeowner's HOPE Hotline: https://www.995hope.org FTC Consumer Advice: https://consumer.ftc.gov/articles/mortgage-relief-scams CFPB – How to Spot Mortgage Relief Scams: https://www.consumerfinance.gov/consumer￾tools/mortgages/how-to-spot-and-avoid-foreclosure-relief-scams/ FTC – Foreclosure Relief and Mortgage Assistance Scams: https://consumer.ftc.gov/articles/mortgage￾relief-scams CONTACT THE VERMONT BANKING DIVISION Phone: 802-828-3307 | 888-568-4547 Email: dfr.bnkconsumer@vermont.gov Mail: Vermont Banking Division, Department of Financial Regulation, 89 Main Street, Montpelier, VT 05620-3101