Once a lender files a "notice of default" with the county, your money troubles become public record. Predatory lenders and other opportunists check the county records regularly to find homeowners in financial trouble. To avoid becoming a victim and possibly losing your home, follow these guidelines:

Do:

• Beware of loan modification services that charge a high upfront fee for something you can do free, either directly with your lender or with the help of a legitimate nonprofit housing counselor.
• Be suspicious of anyone who contacts you to buy your house or offers you a loan or service they promise will solve your problems.
• Avoid high-pressure lenders, or anyone who encourages you to take on a bigger debt or higher payments than you can handle.
• Look out for predatory loan terms, such as a big prepayment penalty, an excessively high interest rate, or a balloon payment due. If you're not sure what to look for, have someone you trust review the documents.
• Get all loan terms and promises in writing.
• Contact a HUD-approved housing counselor through this website: www.hud.gov, or the National Anti-Predatory Lending Consumer Rescue Fund: www.fairlending.com, if you suspect you are being targeted by a crook or believe you may be in an abusive loan.

Don't:

• Move out of your house because someone promises to make the mortgage payments for you.
• Sign anything you don't understand. Have someone you trust review all documents.
• Allow someone to assume the loan without the lender's written permission and without their formally releasing you from liability for the mortgage.
• Deed your property over to anyone. Signing your home over to someone else does not release you from your mortgage obligation.

Contact the Mortgage Services department at New Mexico Educators Federal Credit Union and we can help guide you in the right direction. Email mortgage@nmefcu.org or call 855-5950 (800-347-2838 from outside the Albuquerque area).

Source: Credit Union National Association