With the State Supreme Court decision to temporarily halt foreclosure sales of Fannie Mae, Freddie Mac, and other lenders participating in the new government program, many families whose loans are eligible for modification will have another chance to save their property. “We are especially pleased because we are beginning to see some flexibility from lenders with respect to the government’s new Making Home Affordable plan, which includes both a refinancing and modification option,” said Toby Smith, a certified and licensed counselor at The Homeownership Resource Center (HRC), a division of Family Services Inc.
“One of our concerns was always that there would not be enough time to get the new program in place for those who were already in the pipeline. This is a wonderful turn of events and we hope it will prove beneficial for those who meet the criteria for modifying their loans. We stress the modification option especially because a client who is behind or who has been behind for awhile does not really have the option to refinance their home loan because of damaged credit,” added Smith.
It appears that the injunction will be limited to 90 days so this represents a significant window opening for many folks who may not have taken any action at all. If a homeowner does not know who the investor is for their loan, that information can be determined by calling the lender, and the HRC is more than willing to help.
“Any time you seek help, you are making a good move. In many cases, something can be done to save a home,” noted Smith. Plaintiffs in foreclosure (lenders) have until May 15th to advise if the loan is subject to modification under the federal program. If the loan is not, then the foreclosure sale can proceed. “The next 10 days will be critically important for thousands of homeowners throughout the state,” stressed Smith.
The HRC continuously holds mortgage default and foreclosure clinics for homeowners who are behind on their mortgage or facing foreclosure. Clinics for the greater Charleston area are held on the 1st and 3rd Tuesday on each month from 6 to 8 pm at 4925 Lacross Road, Suite 215 in North Charleston. Homeowners throughout the state can locate a clinic near them by visiting the HRC’s website at www.ForeclosureHelpforSC.org or call 888-320-0350. Additionally, for those in the upstate, a clinic will be held this Saturday in the Greenville area at the Metropolitan Missionary Church, 22 Boland Court. Clinic times are 9 am, 11 am and 1 pm and no pre-registration is required. For more information, visit www.foreclosurehelpforsc.org or call 888-320-0350.
Showing posts with label refinance. Show all posts
Showing posts with label refinance. Show all posts
Tuesday, May 5, 2009
The Foreclosure Process Doesn’t Always Result in the Sale of a Home
by Toby Smith, Counselor
Recently, a very distressed homeowner called The Homeownership Resource Center, a division of Family Services, Inc., absolutely certain that the family home was going to be auctioned off at a foreclosure sale the next day. After calming the caller, we collected the necessary information about the mortgage, budget, and correspondence received from the mortgage lender. What we learned after talking to the mortgage company is this:
1) The caller was 8 months behind and the account had been sent to an outside attorney specializing in foreclosures. That attorney started the legal part of the process by sending the homeowner a lis pendens order – the formal and public notice of default.
2) The caller insisted that she did not receive any documents and did not know that she had 30 days from the date of being served the lis pendens order to respond.
3) Meanwhile, a request to modify the homeowner’s loan was coming up for review, but because it was taking so long, a “projected” sale date was set. When the homeowner called the mortgage company to ask about an update on her request, she was told that an actual sale date, not a projected one – had been put in place.
4) Once those points were clarified and the caller realized that her home was not in danger of being sold the next day, all stress levels (including mine) returned to normal. Additionally, the mortgage company advised that the modification request had been assigned to a negotiator, which is usually a positive step toward a permanent change in the loan terms.
We will check back with the homeowner and the mortgage company every week until a resolution is reached.
In South Carolina, foreclosure is a legal process that must go through the courts. In addition to the homeowner, the public is notified via ads placed in the local newspapers. After being served a lis pendens order, a homeowner has 30 days to respond, but more important to note is that even during this period, a resolution can still be worked out. In fact, a homeowner has until the scheduled hour of the sale to save the home. I have been involved in several foreclosures that have come down to the wire and when the home is saved, it is very gratifying; on the other hand, when the home is lost, is hurts very deeply to know that someone is going to be displaced. One more thing – down to the wire transactions almost always require a payment in certified funds. Several months ago, I had a client lose his home at the last minute because he showed up at the designated location with a personal check…
The foreclosure process varies from state to state. Click this link to get more information www.realtytrac.com. Regardless of where you live, seek the services of a HUD-certified counseling agency, never, ever pay for services, and remember – being in the foreclosure process does not always mean that a home is going to be sold. Don’t give up!
For help in North and South Carolina, call 888-320-0350; nationwide, 888-995-Hope.
Recently, a very distressed homeowner called The Homeownership Resource Center, a division of Family Services, Inc., absolutely certain that the family home was going to be auctioned off at a foreclosure sale the next day. After calming the caller, we collected the necessary information about the mortgage, budget, and correspondence received from the mortgage lender. What we learned after talking to the mortgage company is this:
1) The caller was 8 months behind and the account had been sent to an outside attorney specializing in foreclosures. That attorney started the legal part of the process by sending the homeowner a lis pendens order – the formal and public notice of default.
2) The caller insisted that she did not receive any documents and did not know that she had 30 days from the date of being served the lis pendens order to respond.
3) Meanwhile, a request to modify the homeowner’s loan was coming up for review, but because it was taking so long, a “projected” sale date was set. When the homeowner called the mortgage company to ask about an update on her request, she was told that an actual sale date, not a projected one – had been put in place.
4) Once those points were clarified and the caller realized that her home was not in danger of being sold the next day, all stress levels (including mine) returned to normal. Additionally, the mortgage company advised that the modification request had been assigned to a negotiator, which is usually a positive step toward a permanent change in the loan terms.
We will check back with the homeowner and the mortgage company every week until a resolution is reached.
In South Carolina, foreclosure is a legal process that must go through the courts. In addition to the homeowner, the public is notified via ads placed in the local newspapers. After being served a lis pendens order, a homeowner has 30 days to respond, but more important to note is that even during this period, a resolution can still be worked out. In fact, a homeowner has until the scheduled hour of the sale to save the home. I have been involved in several foreclosures that have come down to the wire and when the home is saved, it is very gratifying; on the other hand, when the home is lost, is hurts very deeply to know that someone is going to be displaced. One more thing – down to the wire transactions almost always require a payment in certified funds. Several months ago, I had a client lose his home at the last minute because he showed up at the designated location with a personal check…
The foreclosure process varies from state to state. Click this link to get more information www.realtytrac.com. Regardless of where you live, seek the services of a HUD-certified counseling agency, never, ever pay for services, and remember – being in the foreclosure process does not always mean that a home is going to be sold. Don’t give up!
For help in North and South Carolina, call 888-320-0350; nationwide, 888-995-Hope.
Thursday, March 26, 2009
The Counselor's Corner
From one missed payment to a critical response intervention...
by Toby Smith
Consider the phases of missed mortgage payments:
Phase 1: Okay, we missed this month’s payment because of the cutbacks, but we can catch up by juggling a few things.
Phase 2: Well, I thought we could catch up, but I didn’t plan on the alternator going out. The car has to get repaired so we can continue to go to work.
Phase 3: Oh my goodness! We are 3 months behind and the phone calls are driving us crazy. Why don’t these mortgage lenders leave us alone!
Phase 4: We’re in serious trouble, but still won’t talk to “them” or open the mail.
Phase 5: An attorney’s office sent us papers today. Maybe we better open the mail and find someone to talk to – NOW!
Phase 6: I have called that counselor 16 times! Why won’t anybody return my call?
Phase 7: The counselor and lender had another long conversation today. We have to come up with the money by next Friday. That’s it.
Phase 8: I can’t believe this is happening. What are we going to do?!?
Does this sound familiar?
It’s amazing how often this scene gets played out in the offices of The Homeownership Resource Center. Equally fascinating though – and less known – is that the situation can still be turned around; even in Phase 8, when things get down to the wire. My colleague, “California cool” Mary Regan is the coordinator of the Critical Response Unit and she often mentions that 3 things must be in place to save a home from auction: a solid budget showing a surplus, stable employment and some cash.
Okay, more than just some cash. Lenders usually will accept either a negotiated amount of the arrearages or the full amount of all past due payments. In Phase 8, there is no room for equivocation; either the home gets saved from auction (and the negotiating continues if the full amount to reinstate the loan is not paid) or sadly, the sale occurs. Fortunately, for many clients, Mary is in place and her saves are becoming the stuff of legend.
We, however, strongly encourage any homeowner in trouble to come see us now…in Phase I…before one missed payment ends up requiring a critical response.
The worst thing you can do is to do nothing. Contact us today. In North and South Carolina, call 888-320-0350.
by Toby Smith
Consider the phases of missed mortgage payments:
Phase 1: Okay, we missed this month’s payment because of the cutbacks, but we can catch up by juggling a few things.
Phase 2: Well, I thought we could catch up, but I didn’t plan on the alternator going out. The car has to get repaired so we can continue to go to work.
Phase 3: Oh my goodness! We are 3 months behind and the phone calls are driving us crazy. Why don’t these mortgage lenders leave us alone!
Phase 4: We’re in serious trouble, but still won’t talk to “them” or open the mail.
Phase 5: An attorney’s office sent us papers today. Maybe we better open the mail and find someone to talk to – NOW!
Phase 6: I have called that counselor 16 times! Why won’t anybody return my call?
Phase 7: The counselor and lender had another long conversation today. We have to come up with the money by next Friday. That’s it.
Phase 8: I can’t believe this is happening. What are we going to do?!?
Does this sound familiar?
It’s amazing how often this scene gets played out in the offices of The Homeownership Resource Center. Equally fascinating though – and less known – is that the situation can still be turned around; even in Phase 8, when things get down to the wire. My colleague, “California cool” Mary Regan is the coordinator of the Critical Response Unit and she often mentions that 3 things must be in place to save a home from auction: a solid budget showing a surplus, stable employment and some cash.
Okay, more than just some cash. Lenders usually will accept either a negotiated amount of the arrearages or the full amount of all past due payments. In Phase 8, there is no room for equivocation; either the home gets saved from auction (and the negotiating continues if the full amount to reinstate the loan is not paid) or sadly, the sale occurs. Fortunately, for many clients, Mary is in place and her saves are becoming the stuff of legend.
We, however, strongly encourage any homeowner in trouble to come see us now…in Phase I…before one missed payment ends up requiring a critical response.
The worst thing you can do is to do nothing. Contact us today. In North and South Carolina, call 888-320-0350.
Tuesday, March 10, 2009
Making Home Affordable Plan
Since the release of the new Making Home Affordable (MHA) Plan on March 4th The Homeownership Resource Center, a division of Family Services, Inc, staff has been pouring over the program guidelines and supporting documentation. The initial assessment is that the clear guidelines for modifying and refinancing home loans will level the playing field for homeowners. For example, we can cite many cases of clients with similar challenges being offered vastly different solutions to their problems. Now that the criteria are established, we can focus on moving forward. Additionally, we are encouraged that the counseling component includes the development of an action plan – this will go a long way toward maintaining stability.
The MHA Plan is focused on 2 areas, modifying loans for homeowners who can’t make their payments and offering an opportunity for homeowners who couldn’t take advantage of lower interest rates because of declining home values to refinance.
For homeowners who are in danger of losing their homes and haven’t yet taken any action, this is a good time to come forward. The Homeownership Resource Center has established procedures to ensure that all clients will be screened for eligibility. However, it should be stressed that lender participation in the MHA program is voluntary. We have heard that most of them are signing on to the program, but if some decide against it, The Homeownership Resource Center will continue to do everything we can to help clients balance their budgets and remain in their homes.
Since the March 4th announcement, our counselors have been fielding calls from homeowners about what the program means and information will be available at all of our mortgage default
clinics. The bottom line is this: Doing nothing is the worst thing you can do. If you are in trouble, call 888-320-0350, find the default clinic closest to you and go.
Criteria for the modification of a home loan (www.financialstability.gov)
The MHA Plan is focused on 2 areas, modifying loans for homeowners who can’t make their payments and offering an opportunity for homeowners who couldn’t take advantage of lower interest rates because of declining home values to refinance.
For homeowners who are in danger of losing their homes and haven’t yet taken any action, this is a good time to come forward. The Homeownership Resource Center has established procedures to ensure that all clients will be screened for eligibility. However, it should be stressed that lender participation in the MHA program is voluntary. We have heard that most of them are signing on to the program, but if some decide against it, The Homeownership Resource Center will continue to do everything we can to help clients balance their budgets and remain in their homes.
Since the March 4th announcement, our counselors have been fielding calls from homeowners about what the program means and information will be available at all of our mortgage default
clinics. The bottom line is this: Doing nothing is the worst thing you can do. If you are in trouble, call 888-320-0350, find the default clinic closest to you and go.
Criteria for the modification of a home loan (www.financialstability.gov)
- Property must be owner occupied.
- Balance must be less than $729,750.
- Loan must have been originated before 1/1/09.
- Mortgages, taxes, insurance and homeowner association dues must be more than 31% of gross income.
- A significant change in the expenses and income makes the mortgage unaffordable.
- Property must be owner occupied.
- Income of the borrower must be sufficient to support the new mortgage payment.
- The first mortgage must not exceed 105% of the current market value.
- Loan must be owned or securitized by Fannie Mae or Freddie Mac.
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