Foreclosure Prevention

Mortgage Delinquency Counseling

Home foreclosure and mortgage delinquency can occur as a result of a reduction in pay, job layoff, illness, death of an income provider, care of family members or other reasons. Foreclosure Prevention/Mortgage Delinquency Counseling from the ULK provides clients who are delinquent on their mortgage or facing foreclosure, the opportunity to bring their mortgage payments current and potentially save their home. This is accomplished through education and advocacy.


A ULK housing counselor will work on behalf of the client with their mortgage company (or the mortgage company’s attorney) to find a workable solution for both parties. The counsel and advocacy of a third-party HUD-approved counselor is often a welcome addition to the negotiation process for the mortgage company and provides a sense of relief to the client. The ULK housing counselor creates a detailed budget for the client to use based on financial weaknesses identified in a confidential counseling session. After a detailed budget has been drafted, the housing counselor will be able to determine the best course of action and work with the client and mortgage company toward a realistic and beneficial solution for all parties.



Counselors will typically work with you to achieve the following:


Immediate Actions

  • Loss mitigation
  • Forbearance
  • Loan modification
  • Partial claim
  • Deed in lieu
  • Pre-foreclosure sale
  • Re-finance
  • Home Equity Conversion Mortgage



Improved Money Management

  • Creating/using a budget to plan spending for each pay period
  • Use of financial journals
  • Saving for periodic expenses



Balanced Budget

  • Outline necessary actions to reduce expenses
  • Review tax withholding status
  • Determine ways to increase income
  • Sale of Assets
  • Savings & Investments
  • Review child support payments
  • Extend auto payments/sell auto
  • Improve Credit Status
  • Stop use of credit cards
  • Keep utilization rate below 50%
  • Write creditors and explain financial situation



Additional Recommendations

  • Seek legal advice from an attorney
  • Referrals