Foreclosure Prevention Counseling FAQ

Frequently Asked Questions

I’m struggling and missed paying a mortgage payment. What should I do?

  • Don’t waste any time.  First, call your lender’s loss mitigation department and tell them what has happened or changed that has caused you to miss the payment. The lender will most likely ask you detailed questions about your current income and expenses. If so, jot down notes of what you tell them, who you spoke to and what they tell you.
  • Avoid telling the lender you will make any payments that you risk not being able to make. False promises will cause additional problems in gaining the lender’s cooperation.
  • Call 877.412.2227 (CCCS) and request an appointment for a Foreclosure Prevention Counseling session. Our counselors are certified by the U.S. Department of Housing and Urban Development (HUD) to help you understand your options.

When I meet with a Clearpoint housing specialist, what options might we discuss?

  • Short sale
  • Deed-in-lieu of foreclosure
  • Loan modification
  • Refinance
  • Forbearance
  • Repayment
  • Partial claim

In your Foreclosure Prevention Counseling session, a counselor will speak with you about any of these options of which are eligible. These options are not available to every homeowner.

What should consumers understand about the modification process?

Probably the most important thing to understand about modifications is that they are processed on a case-by-case basis.  No two situations are exactly alike, just as no two lenders or investors are alike.  Lender and investors utilize a complicated formula referred to as Net Present Value (NPV). This formula is first and foremost designed to protect the interests of the investor.  There are simply no guarantees.  The lender’s first objective is to minimize the loss to the investor.  If this objective coincides with the homeowner’s desire for a modification, everyone wins.  Otherwise, the  homeowner may have an uphill battle to obtain a permanent modification.

What is the number one reason lenders give for denying a modification?

In a report to the U.S. Treasury Department, lenders have estimated that the cause for denial of permanent modifications in 80% of the cases is lack of complete documentation or missing paperwork from the homeowner.  This statistic presupposes the homeowner had been accepted for a trial modification in the past, and also underscores the importance of the homeowner following through with all lender requests for updated information and documentation.

In any case, a wise consumer will have a back-up strategy in the event their goal of home retention is not realized.

Call 877.412.2227 to make an appointment with one of our certified housing counselors to research these various options and to better understand the time line for foreclosure.


Foreclosure prevention scams are rampant. Protect yourself.

  • Avoid signing confusing paperwork. Understand every sentence. Make sure a Clearpoint housing counselor or your attorney reviews your paperwork before you sign it.
  • One of the most common scams occurs when someone asks you to sign over your home (and mortgage). They promise to catch up the payments, rent the house to you and sell the property back to you when you get back on your feet.  They will usually tell you that when your financial situation improves, they will resell the house to you. Many problems come up in this circumstance from person buying the house not making the house payments, the person can take a fee for this service and disappear or try to gouge you on the price of the house in the future.
  • If sounds “too good to be true,” follow your instincts and avoid the transaction.

Important Advisory: Clearpoint will NEVER text, email, mail or call to ask you to send or deposit money to any account other than your own (according to your chosen payment method associated with a Debt Management Program, or for specific services like housing education or bankruptcy counseling). If you receive any correspondence of this nature, please beware that it could be a scam. Do not respond or share any personal or banking information, and contact our office immediately at 877 877 1995, or by email.