AICCCA Provides Tips to Adjust to Adjustable Rate Mortgages and Avoid Foreclosure
FAIRFAX, VA - April 24, 2008 — One in every 538 U.S. households received a foreclosure notice in the month of March and more than 234,000 homes were in some stage of foreclosure during the month, reported RealtyTrac. The Association of Independent Consumer Credit Counseling Agencies (AICCCA) encourages consumers to act now if they believe they won't be able to afford an increase in the interest rate for their adjustable rate mortgage.
"Acting before they get behind on mortgage payments will give consumers the best opportunities to receive assistance or modify the loan," said David Jones, AICCCA president. "Once consumers' credit histories are negatively affected by missed mortgage payments, the fewer options they have to remain in their homes."
To help, AICCCA offers these tips to adjust to adjustable rate mortgages and avoid foreclosure:
Assess your situation. Determine what your mortgage payment will be once your rate adjusts and decide if you can afford the increase. If not, take action quickly.
Don't wait until you miss a payment to contact your lender.
Most lenders are willing to work with you on some type of concession if you contact them before you are behind a payment. To qualify for most governmental assistance you must have a good credit rating, so don't procrastinate.
Consider all refinancing options now. You will be much more likely to qualify for a loan refinance if you are current with your mortgage payments. Many lenders are willing to deal with your problem, no matter how severe.
Get help from a qualified housing counselor. You can find an AICCCA member HUD certified housing counselor by calling 866-703- TRUST-AICCCA (866-703-8787) or visiting www.aiccca.org.
Founded in 1993, Association of Independent Consumer Credit Counseling Agencies (AICCCA) is a national membership organization, established to promote quality and consistent delivery of credit counseling services. AICCCA and its members are focused on improved creditor relations, efficient processes and advanced technology to best serve clients and creditors. AICCCA members are independent nonprofit agencies that advocate for debtors, counsel millions of consumers annually nationwide and provide debt management services to consumers with excessive unsecured debt. For more information or to contact an AICCCA member office call 866-703-TRUSTAICCCA (866-703-8787) or visit www.aiccca.org.
