The easiest way to recover from a foreclosure in Montana is to contact your lender as soon as you are unable to make your payments on time. Lenders want the borrowers to keep their homes because foreclosure is an expensive process on which most lenders end up losing money.

Lenders therefore have an interest in exploring every possible option available under Montana foreclosure law. Montana foreclosure alternatives include forbearance, partial claim, payment modification and payment suspension. However, the fewer payments you are behind, the more options will be open to you.

There are three key actions to take in the Montana foreclosure recovery process:

1. Read and respond to any correspondence from your lender. These notices will contain important information on the foreclosure recovery process in Montana and pending legal action.

2. Raise money to make a missed payment. You may be able to sell assets such as a second car or jewelry, or you could take a second job.

3. Avoid foreclosure recovery scams. Many companies claim to be able to stop your foreclosure by charging you for information you could get for free such as Montana foreclosure listings. Others will require you to sign over the title to your house.

Action Steps
The best contacts and resources to help you get it done

Know how Montana foreclosure laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws in Montana. You should also read your loan documents to know what your lender can do when you are recovering from foreclosure.

I recommend: ForeclosureS.com provides the contact information for the Attorney General’s Office in Montana and links to specific legislation regarding foreclosure in Montana. Advantage Mitigation Services summarizes the foreclosure laws in Montana and outlines the foreclosure recovery process.

Get assistance to avoid Montana foreclosures

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender, if needed.

I recommend: Visit the National Foundation For Credit Counseling’s Homeowner Crisis Resource Center for information and tools to get started understanding your foreclosure options. The Homeownership Preservation Foundation offers a hotline that provides free foreclosure prevention counseling by HUD-approved agencies.

Retain a Montana foreclosure recovery attorney

You may need Montana foreclosure lawyers to protect your interests, especially if you need to sign documents. If your regular attorney does not handle Montana foreclosure law, he may be able to make a referral.

I recommend: Gough, Shanahan, Johnson & Waterman in Helena has numerous practice areas, including real estate and property transactions. Worden Thane has many practice areas in Missoula that include real estate law with specific experience in foreclosures.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider refinancing in your Montana foreclosure process if you have some equity in your home. You will normally need at least 10 percent equity for a reasonable chance at refinancing and your odds get better with more equity. However, you don't want to make the common mistake of simply taking out a new loan when stopping a foreclosure in Montana.