Foreclosure Prevention

Foreclosure is the legal process by which a lender takes possession of the mortgaged property when the borrower fails to make monthly payments in a timely way or otherwise violates the loan agreement. We never want to foreclose on a customer’s home. Only when all other options are exhausted will we initiate the foreclosure process. Foreclosure will affect your credit score and possibly your ability to obtain financing in the future.
 

Forbearance
The action of the lender to refrain from exercising a legal right, especially enforcing the payment of a debt. An example would be a temporary reduction or suspension of payments on a loan, followed by an arrangement to cure the delinquency.

Repayment Plan
This is a type of Forbearance in which an arrangement is reached to repay past due amounts over a period of time in conjunction with regular monthly mortgage payments.

Modification
One or more of your existing loan terms may be changed in order to help. This could include: a change in mortgage loan type (such as from an adjustable to a fixed), an extension of the mortgage terms, a step rate, capitalization of delinquent amounts, and/or reduction of your interest rate.

Partial Claims
For FHA Loans only, your lender may be able to work with you to obtain a one-time payment from the FHA Insurance Fund to bring your mortgage current.

Scam artists have stolen millions of dollars from distressed homeowners by promising immediate relief from foreclosure or demanding cash for counseling services when HUD-approved counseling agencies provide the same services for FREE.

If you receive an offer, information or advice that sounds too good to be true, it probably is. Remember, help can be found FREE.

How to Spot a Scam – beware of a company or person who:

• Asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage.
• Guarantees they can stop a foreclosure or have your loan modified.
• Advises you to stop paying your mortgage company and pay them instead.
• Pressures you to sign over the deed to your home or sign any paperwork that you haven’t had a chance to read, and you don’t fully understand.
• Claims to offer “government-approved” or “official government” loan modifications.
• Asks you to release personal financial information online or over the phone.

How to Report a Scam – do one of the following:

• Go to www.preventloanscams.org and fill out the Loan Modifications Scam Prevention Network’s (LMSPN) complaint form online and get more information on how to fight back.
  • ​Note: you can also fill out this form and send to the fax number/email/address (your choice) on the back of the form.
• Call (888) 995-HOPE (4673) and tell the counselor you believe you've been the victim of a scam or you know someone who has.

Pre-foreclosure or Short Sale
Occurs when a property is listed for sale and proceeds of the sale are accepted in exchange for a release of the lien, even if those proceeds are less than the amount owed.

Deed-In-Lieu of Foreclosure
This option voluntarily transfers the title and possession of the property to the Lender in order to satisfy the mortgage loan debt and avoid foreclosure.

Am I eligible?
Every situation is unique, and will be reviewed carefully to determine if foreclosure is the only possible remedy. Use this list as a general guideline of the information we look at to determine if you qualify for a payment alternative.

• You must demonstrate an involuntary inability to pay
• Account in question must be a mortgage or home equity line of credit (no overdraft lines of credit)
• Home must not be vacant or condemned
• Property must be a 1 - 4 family dwelling

My FICO
Credit scores are a concern for most of us. Myfico.com can help you understand what makes up a credit score, what affects it and what you can do to maintain good credit.
Be advised that as a lender/servicer, we are required to report the current status of your loan. Any missed payments or loss mitigation option will affect your credit.

Counseling
The U.S. Department of Housing and Urban Development (HUD) has provided an extensive list of HUD-approved credit counseling agencies who can help evaluate your situation and address your needs. They can help you develop a budget, provide recommendations for freeing up cash, and provide housing counseling assistance.

Understand the Foreclosure Process
Visit the official HUD.gov page containing tips for avoiding foreclosure as well as summaries of various government programs designed to help lower your monthly mortgage payment, modify or refinance your loan, transition to more affordable housing and more.

Know Your Options
KnowYourOptions.com is an official Fannie Mae website filled with helpful information about every phase of home ownership, including detailed advice and resources for avoiding foreclosure, deciding whether to stay in your home or leave it, understanding reverse mortgages, and helpful advice for those who are already in foreclosure.

Home Loan Learning Center
This site provides step-by-step information on how to become financially literate in order to make informed financial decisions. Learn about credit reports and scores, see the true cost of owning a home, compare the costs of renting vs owning, and get in-depth, easy-to-read home loan product information.

County Resources
Visit your county’s official web page to learn about the financial programs and related resources they may have to offer.

Making Home Affordable
An official program from the Department of the Treasury and HUD, this site is filled with helpful information and valuable programs that can help you avoid foreclosure, lower your monthly mortgage payments, modify a second mortgage or apply for mortgage assistance if you are unemployed.

Financial Stability
This site provides information on taxes, grants, housing finance reform, the Recovery Act, the Making Home Affordable program and much more. You’ll also find links to other helpful government bureaus.

First Call for Help
Visit the official site of United Way’s 2-1-1 / First Call For Help initiative. This free community service provides confidential information and referrals for help with food, housing, employment, health care, counseling and more. Click to visit the site, or simply call 2-1-1 to get started.