December 18, 2014

Foreclosure Prevention

FORECLOSURE PREVENTION COUNSELING SERVICES

house

Home Foreclosure

We assist homeowners with counseling and loan modification applications, which include assembling loan modification documents, reviewing hardship letters and follow-up with the lenders. The impact of this service results in homeowners receiving mortgage modification trial periods with reduced mortgage payments and long-term restructuring options. These services prevent homeowners from losing their homes to foreclosure.

Our Counseling

Our counseling sessions include a detailed credit counseling financial work-up comparing (income to expenses) to determine the deficit between the two entities. After making this comparison on a computer print-out, we explain to the client how to effectively create an affordable household budget and develop a plan of action to reduce and consolidate household debts as well as to find ways to increase income.

As a result of our efforts, homeowners are awarded loan modifications which reduce the original terms of their loan and reduce monthly mortgage payments. The impact of our counseling service allows residents to remain in their homes, relieves their anxiety about paying their high mortgage and monthly expenses and creates a realistic family budget.

(HAMP) HOME AFFORDABLE MODIFICATION PROGRAM

Reconstructing your current mortgage to lower your monthly mortgage payments to make them more affordable and sustainable for long-term.

ELIGIBILITY FOR HAMP

* Obtained your mortgage on or before January 1, 2009.
* The house is the primary residence.
* The amount owed on the first mortgage is equal to or less than $729,750.
* The mortgage is not previously HAMP modified.
* You have a financial hardship and are either delinquent or in danger of falling behind on your mortgage payments.
* You have sufficient, documented income to support a modified payment.

(HARP) HOME AFFORDABLE REFINANCE PROGRAM

If Freddie Mac owns your mortgage and you are timely with your mortgage payments but unable to refinance because you have little or no equity in the home, you may be able to refinance to a lower interest rate or a more stable mortgage through the federal Home Affordable Refinance Program (HARP). This program is designed for homeowners who have not been able to refinance due to a decline in the value of their home. HARP may help you obtain a monthly payment you can afford, and must result in one or more of the following:

* A reduction in your interest rate and/or your monthly principal and interest mortgage payment.
* A fixed-rate mortgage in place of an adjustable-rate, interest-only, or balloon/reset mortgage.
* A reduction in the term of your mortgage (e.g., from 30 years to 15 years).

ELIGIBILITY FOR HARP

*Own a 1-to-4-unit home as your primary residence, a 1-unit second home, or a 1-to-4-unit investment property.
* Are timely making your mortgage payments.
* Choose a mortgage solution that can improve the long-term affordability or stability of your mortgage with the refinance.