Foreclosure Prevention Counseling
The Urban League provides a complete overview of the Foreclosure Prevention process for homeowners who are suffering from a hardship at this time of their life. Counselors provide Credit Analysis and Budget Management skills to create an action plan for stabilizing your financial hardship.
A Request for Mortgage Assistance (RMA) is then submitted on your behalf to your lender. Your counselor will become a liaison between you and your lender, discussing alternative options to foreclosure and providing referrals to outside agencies with the goal of PREVENTING foreclosure on your home.
Foreclosure Prevention Workshops
Monthly workshops provide an overview of the Collection/Foreclosure process as dictated by state laws and The Consumer Protection Financial Bureau’s (CPFB) guidelines. Learn the different options to resolve mortgage delinquency through the Making Home Affordable Program, Home Retention and Liquidation Options. Participants are encouraged to schedule a one-on-one appointment with counselors so we can submit Foreclosure PreventionPackages to your lender for review.
Beware of Loan Modification Scam
If I sounds too good to be true it is.
Scam artists across the country are preying on homeowners who are facing foreclosure or seeking a loan modification. Anyone can be a victim – but you don’t have to be.
The red flags include people or companies that:
- Ask for fees in advance
- Guarantee they can stop a foreclosure or get your loan modified
- Tell you to stop paying your mortgage company and pay them instead
For loan modification guidance from a HUD-approved counseling agency or to report a scam, call 1-888-995-HOPE or visit www.LoanScamAlert.org
Foreclosure Prevention Loss Mitigation Options
Home Retention Programs
Pay the full amount owed (total of past due monthly payments plus all fees in a lump sum) by a specific date.
Repay back past due amount of mortgage with your regular payments over a specific period of time. Maintain ownership of your property while bringing mortgage current by paying back past due amount with their regular payments over a specific period of time.
Pay a reduced or no mortgage payment for a specific period of time. Delinquency must be paid in full at the end of the forbearance or combined with another workout option to prevent foreclosure.
If your loan is insured by the Federal Housing Authority (FHA) you may qualify for a low interest or interest‐free loan to bring your loan current through the insurer. This loan may have small monthly payments, or it may be repaid when you pay off your first mortgage or sell your home.
A loan modification changes the terms of the mortgage which could result in a new monthly payment. Lenders may be able to lower your payment, interest rate and/or extend your loan term to help you avoid foreclosure. Your lender may require a special forbearance or trial period before receiving a permanent modification.
This option allows you to stay in your home while working with your lender to sell the home. Lenders can approve you to sell the home when more money is owed on your mortgage loan than the home is worth. Licensed Real Estate is required for this option.
Deed In Lieu:
In Lieu of foreclosure the borrower may sign over (give back) the property. In turn your lender forgives the debt you owe. If you have a second mortgage or judgments on the property, a deed‐in‐lieu may not be an option.