Chapter 1
Chapter 2
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 1: A Three Step Assessment
Before you contact the lender, however, you need to be prepared to provide accurate, up-to-date, and documented information. Remember you are not in this alone. Our counselors are here to assist you with your efforts to resolve the delinquency. Contact us with any questions or to make an appointment to meet with a counselor.

First download the PDF worksheet, and then complete the following three steps to aid in your preparations.


Step #1: Statement of the Problem
The first step is to develop a statement of the problem. This should be very clear so the lender understands exactly why you are now, or will be, delinquent.

  • Identify the problem: Briefly summarize the overall situation and be specific as to how it happened. In other words, clearly explain what caused you to fall behind on your mortgage payments. Provide any and all documentation you can to back up your statement. (See page 1 of the downloaded worksheet.)

  • Prioritize: Using the table on page 2 of the downloaded worksheet, list your specific financial problems starting with the most serious need first. For example, if you are late on your mortgage, list this first. Then list other needs, i.e., car, phone, credit cards, etc.

Your statement of the problem is one of the most important factors in obtaining the help you need from your lender and other creditors. Always be honest and realistic, and provide documentation.

Step #2: Personal Financial Assessment
Completing a personal financial assessment (on page 3 of the downloaded worksheet) will help you determine exactly what your financial circumstances are and enable you to make a realistic determination of what payment arrangements are feasible for you. This worksheet will help you make this assessment.

Step #3: Equity Calculation
In addition to your Statement of the Problem and your Personal Financial Assessment, you need to determine how much equity you have in your home. This may help you decide whether you intend to keep your home at all costs. (Complete the equity calculation on page 4 of the downloaded worksheet.)

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