Freddie Mac is going 21st century by utilizing the Internet to inform distressed homeowners. Today, it released a new video series on its YouTube Channel. The videos are designed to help consumers separate foreclosure fact from fiction.
Each 90- to 120-second video dispels one of five common myths that could prevent people from keeping their homes if they face foreclosure. It is based on content from the Freddie Mac Get the Facts on Homeownership education and outreach materials.
“Individuals are worried about scams and fraud, and don’t know who to safely turn to for help,” said Dwight Robinson, Freddie Mac senior vice president of Corporate Relations and Housing Outreach. “The videos provide information and resources that just might keep individuals from losing their home.”
The Freddie Mac YouTube Channel covers the following misconceptions about foreclosure:
►Myth 1: If my house is foreclosed, I can never buy a house again—the foreclosure will stay on my record forever.
Truth 1: Foreclosure can have a devastating effect on your finances and you personally, but you can recover. Use the time after foreclosure to prepare yourself for successful homeownership the second time around by creating a spending and savings plan and rebuilding your credit.
►Myth 2: I should stop paying my mortgage so I can get assistance with my mortgage payments.
Truth 2: Stopping payment on your mortgage only hurts your situation and can expose you to foreclosure and credit difficulties that could require years to rebuild.
►Myth 3: If I’m late on my monthly payments, I’ll lose my house.
Truth 3: If you have a financial hardship and fall behind, it’s possible to keep your house and get back on track if you contact your lender as soon as possible to discuss your options. You can also contact a HUD-approved housing counselor by calling the Homeowner’s HOPE Hotline at 888-995-HOPE (4673).
►Myth 4: I am getting many offers for help from a variety of people. They are probably all scams.
Truth 4: Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their home. It’s important to always open and respond to communications from your lender, particularly if you’ve already missed a mortgage payment. In addition, if you are in a financial crisis or facing foreclosure, make sure you work with your lender or a HUD-approved counseling agency to avoid common scams.
►Myth 5: My lender is not responding to my inquiries, so I should just give up and face foreclosure.
Truth 5: Whatever you do, don’t walk away, and don’t give up. It may take several attempts to reach your lender because their call volume can be very high.
“Housing counselors and lenders have traditionally delivered the Get the Facts messages to consumers,” said Robinson. “Today, we are utilizing a popular and powerful tool—YouTube— to deliver this pertinent information to consumers.”