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How to Respond to a HUD Demand Letter for Payment

Have you or a loved one received a HUD demand letter for payment? Read this before you proceed! Click here to learn how to properly handle your HUD letter.


We all rack up debt sometimes, so you don't need to be ashamed of your debt. Life can be tougher than we'd like it to be. Debt is just one of those things that make it so hard on occasion.  Defaulting on government backed home loan and receiving a HUD demand letter for payment is a terrible feeling.

Of course, when a HUD demand letter for repayment shows up on our doorsteps, knowing that life is tough doesn't make it easier.

Our minds immediately go into overdrive. We start thinking of how we should respond to the letter and how to get help.

What, though, are some realistic options in these situations? Must a payment be made?

Continue reading to find out what some appropriate responses to a demand letter are.

Try Negotiating

We are occasionally in the wrong. That said, we know when we actually do owe someone a debt.

In these cases, negotiating is a smart move. Negotiating the terms of repayment could possibly allow you and HUD to work out a deal that's not too shabby for you. You could walk away paying a lot less than you would have if you had fought.

There is, though, a caveat here. You want to make sure that HUD has a solid claim before you begin negotiating. The last thing you want to do is promise someone money that you didn't actually owe.

Look Into Some Special Programs

There are programs which are dedicated to helping people deal with their debt. The HUD settlement by compromise is one way to reduce your debt.  These strategies can help you avoid collection actions such as  the federal government offsetting federal payments due you.

Needless to say, you must meet some requirements in order to be eligible. Having said as much, make sure that you take a serious look at your options. As a matter of fact, we'd even recommend seeking legal counsel, which we'll talk a bit more about in the next section.

Seek Legal Help

If you feel that you're being wronged or that you can get some sort of relief, you should seek legal counsel.

You can even take things a step further and find a lawyer who specializes in HUD loan problems. This will give you the best shot at "winning" your case.

In truth, you should also consider getting some legal assistance if you don't think that you've been wronged. After all, lawyers know a lot more about the law than you do. They're well aware, for example, of the statute of limitations, something that the average person might not consider.

Avoiding Getting A Demand Letter For Repayment

Some people say that an ounce of prevention is worth a pound of cure. They happen to be correct. In other words, do try your best to avoid getting a demand letter for repayment.

You can keep track of how close you might be to getting a letter by visiting the HUD department's site.

And if you're already in a bind? Just contact us and get a free case evaluation. We specialize in dealing with HUD loan problems, and we are committed to helping people who happen to be in tough spots.

We are here to help you with your Administrative Wage Garnishment defense.

Call our experienced attorneys at (888) 756-9969 anytime for a Free Case Evaluation