Kansas Attorney General Stephen N. Six issued the following statement on home mortgage foreclosure this week, urging people facing foreclosure to seek help from an attorney.
Home foreclosure is a growing problem in Kansas and across the nation. Mortgage fraud and subprime lending have left many homeowners stuck with home loans they can no longer afford.
My office recently convened a task force to investigate this problem. Consumer advocates met with representatives from lending and real estate industries to determine ways we can stem the tide of home foreclosure in Kansas.
While my office continues to investigate reports of mortgage fraud, there appears to be a great need for increased consumer awareness on this issue. When facing a lending crisis, homeowners can greatly reduce the number of pitfalls by following a few basic steps.
The most important advice for anyone facing foreclosure is to contact your lender or the company who sends you your bill as soon as possible. It may be possible to negotiate or re-structure the terms of your loan to make your payments more affordable.
Home foreclosure is a harsh legal process that moves quickly. Unfortunately, homeowners in this situation are often targeted by scams, including offers of assistance from “mortgage rescue†companies. Consumers facing foreclosure should obtain legal advice immediately and never sign anything without having it reviewed by their attorney.
In addition to contacting an attorney, you may also seek advice from a housing counselor. Housing counseling agencies offer guidance on buying a home, renting, reverse mortgages and default and foreclosure prevention. The Department of Housing and Urban Development (HUD) maintains a list of approved agencies at www.hud.gov.
If you absolutely cannot afford to keep making your mortgage payments, check all your options before walking away from your home. You may be able to sell your home or negotiate with your lender to avoid losing any equity or tarnishing your credit record.
Home foreclosures occur for a variety of reasons. As your Attorney General, it is my duty to make sure that Kansas families are treated fairly in the home buying process. My office will continue to investigate this issue and do everything we can to safeguard homeowners. For more information on this and other consumer issues, visit www.ksag.org.
2-18-08
