Mediation is Available Mediation is available whether or not you dispute your lender s right to foreclosure.

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1 DON T GET ROBBED, ACT NOW! Don t trust the signs on the telephone poles. Be careful of the letters and phone calls from people claiming they can help you stop the foreclosure on your property. Many of those offers are scams. AVOID ANY BUSINESS THAT: Guarantees to stop the foreclosure Collects a fee before providing you with any services Instructs you not to contact your lender, lawyer, credit or housing counselor Tells you to make your mortgage payments directly to them, rather than your lender Tells you to transfer your property deed or title to them Encourages you to lease your home so you can buy it back over time Offers to fill out paperwork for you or pressures you to sign things you don t understand A partnership of The Judiciary, the Office of the Attorney General, the Housing & Mortgage Finance Agency, Legal Services of New Jersey, the Office of the Public Advocate and, the Department of Banking and Insurance. What Is Foreclosure Mediation? Foreclosure mediation is an opportunity for qualified homeowners who are facing foreclosure to receive help from housing counselors, attorneys, and a neutral mediator to resolve a loan delinquency. The program aims to assist homeowners avoid foreclosure by proposing work-out and payment arrangements that balance the interests of the borrower and lender. The program is free. Mediators are ready to encourage every participant and mortgage lender to reach an amicable result. Mediation is Available Mediation is available whether or not you dispute your lender s right to foreclosure. Read Your Mail! The Court will mail you important information about your case. You must respond to notices from the Court, even if you participate in mediation. NJ Foreclosure Mediation Program provides for HUD Certified Housing Counselors: Counselors will be sensitive to your financial status and recommend a loan workout that is affordable. Legal Representation: Attorneys are available to help incomeeligible participants review documents, negotiate with the lender, and attend the mediation. Experienced Neutral Mediators: Free mediation is available to homeowners facing foreclosure. The mediator will assist you and the lender to reach a voluntary and amicable solution. Three Easy Steps to Sign Up: 1. Call the toll free hotline or visit 2. Speak to a representative about eligibility when you call 3. If step 2 determines you are eligible contact the HUD certified counselor you are referred to.

2 An important message from the Federal Trade Commission A Note to Homeowners Facing foreclosure? Scammers are targeting people having trouble paying their mortgages. Some claim to be able to rescue homeowners from foreclosures, while others promise loan modifications for a fee. The Federal Trade Commission, the nation s consumer protection agency, wants you to know how to avoid scams that could make your housing situation go from bad to worse. Don t Get Hit by a Pitch. We can stop your foreclosure! 97% success rate! Guaranteed to save your home! These kinds of claims are the tell-tale signs of a foreclosure rip-off. Steer clear of anyone who offers an easy out. Don t Pay for a Promise. Don t pay any business, organization, or person who promises to prevent foreclosure or get you a new mortgage. These so-called foreclosure rescue companies claim they can help save your home, but they re out to make a quick buck. Some may request hefty fees in advance and then stop returning your calls. Others may string you along before disclosing their charges. Cut off all dealings if someone insists on a fee. Send Payments Directly. Some scammers offer to handle financial arrangements for you, but then just pocket your payment. Send your mortgage payments ONLY to your mortgage servicer. Don t Pay for a Second Opinion. Have you applied for a loan modification and been turned down? Never pay for a second opinion. Imitations = Frustrations. Some con artists use names, phone numbers, and websites to make it look like they re part of the government. If you want to contact a government agency, type the web address directly into your browser and look up any address you aren t sure about. Use phone numbers listed on agency websites or in other reliable sources, like the Blue Pages in your phone directory. Don t click on links or open any attachments in unexpected s. Talk to a HUD-Certified Counseling Agency For Free. If you re having trouble paying your mortgage or you ve already gotten a delinquency notice, freehelp is a phone call away. Call HOPE for free personalized advice from housing counseling agencies certified by the U.S. Department of Housing and Urban Development (HUD). This national hotline open 24/7 is operated by the Homeownership Preservation Foundation, a nonprofit member of the HOPE NOWAlliance of mortgage industry members and HUD-certified counseling agencies. For free guidance online, visit For free information on the President s plan to help homeowners, visit Federal Trade Commission ftc.gov/moneymatters

3 New Jersey Housing and Mortgage Finance Agency Foreclosure Fast Facts STATEWIDE FORECLOSUREPREVENTION RESOURCE Homeowners The Office of the Courts Foreclosure Mediation Program provides homeowners with access to housing counselors and court trained mediators to resolve foreclosure actions by proposing work-out and payment arrangements between distressed borrowers and lenders. The program will also provide lawyers to income-eligible homeowners. Call to sign up or visit These New Jersey HOUSING COUNSELING AGENCIES have been trained in foreclosure prevention counseling. You can call directly to receive assistance. In Morris County: Urban League, 300 Madison Ave, Suite A, Morristown (973) ; Episcopal Community Development (973) In Passaic County: NJ Citizen Action (800) or (973) ; Episcopal Community Development (973) In Sussex County: Urban League (of Morris County) (973) The Mortgage Assistance Program provides funding to homeowners to bring mortgages current or to refinance or renegotiate the terms of the mortgage. Homeowners must work with a counseling agency such as listed above to determine eligibility. Anti-Predatory Lending If you feel you have been taken advantage of or misled by a lender, call Legal Services of New Jersey at Legal Services of NJ provides legal representation to low-income New Jersey homeowners. Homeowners regardless of income level may file a complaint with the NJ Department of Banking and Insurance by calling The Hope Hotline HOPE offers free, confidential help and assistance to homeowners with mortgage problems 24 hours a day / 7 days a week in English and Spanish. Renters You cannot be evicted without notice and without good cause. This is true even when a bank or mortgage lender files an action to foreclose on your rented property because your landlord has not paid the mortgage. If you find yourself facing eviction, call a lawyer. If you cannot afford a lawyer, you may be eligible for Legal Services. Find out by calling If you have been locked out of your home, call the Police Department in your municipality. Remember, the landlord or property owner must take you to court before you can be removed from your home. Housing Resource Center (HRC) Provides a statewide listing of vacant for sale and rental properties. Visit to search thousands of affordable units. HRC is free and anonymous. Vacancy information is updated biweekly. Young People The loss of a home affects every member of the family not just the adults. Governor Corzine recently launched the 2 nd FLOOR Youth Toll-Free Helpline which lets young New Jerseyans between 10 and 24 years of age call and talk about whatever is on their mind. To speak to a counselor, call Parental permission is not needed and all calls are confidential and anonymous. Women Women s Referral Central The Hotline provides referrals and basic information in areas such as discrimination, affordable housing, addiction services, domestic violence, employment, legal assistance. Please call for further information. Veterans Counseling Hotline

4 Homelessness Prevention NJ Homelessness Prevention Program provides limited financial assistance to low- and moderate-income tenants and homeowners in imminent danger of eviction or foreclosure due to temporary financial problems beyond their control. Funds are used to disburse payments in the forms of loans and grants to landlords and mortgage companies. Please call toll-free Home Heating Assistance NJ SHARES New Jersey Statewide Heating Assistance and Referral for Energy Services (New Jersey SHARES) is a non-profit organization charged with a mission to provide assistance to individuals and families living in New Jersey who are in need of temporary help in paying their energy bills. Call NJSHARES or visit to find out how to apply. The Low Income Home Energy Assistance Program (LIHEAP) is designed to help low-income families and individuals meet home heating and medically necessary cooling costs. This year, the application period is November 1, 2008 to April 30, The Universal Service Fund (USF) is a program created by the State of New Jersey to help make natural gas and electric bills more affordable for low-income households. If you are eligible, USF can lower the amount you pay for gas and electricity. For further information on LIHEAP and the USF or to locate the nearest application agency, call or Additional information about LIHEAP and USF, including an application, is also available at NJ Weatherization Program Assists elderly, handicapped and low-income persons in weatherizing their homes, improving their heating system efficiency and conserving energy. Call or visit to find a service provider near you. General Assistance General Assistance - Call 211. Call Specialists will provide information and referral for services including: Basic Human Needs Resources food banks, rent assistance, utility assistance Seniors and Persons with Disabilities congregate meals, Meals on Wheels, adult daycare and transportation Children, Youth and Families childcare, after school programs, mentoring, protective services, tutoring Employment Supports financial assistance, job training New Jersey Self-Help Clearinghouse Self-help groups can connect you with others who truly understand. NJ Self-Help Clearinghouse has information on over 4,500 self-help groups for addictions, abuse, health, loss, mental health, disabilities, family and parenting concerns. Services are free and confidential. (800) or (800) NJHELPS Is a one stop resource for state programs to assist residents of New Jersey. Visit to self-screen in English or Spanish for over 28 programs such as food stamps, prescription drug assistance, Work First New Jersey, assisted living, and more. NJHELPS also lists over 30 hotline resources for child care, child support, support for working families and more. Statewide Hotlines Domestic Abuse Hotline Addiction Hotline Substance Abuse Hotline Food Stamp Info Line or online application

5 This page is located on the U.S. Department of Housing and Urban Development's Homes and Communities Web site at IF YOU LOG ONTO THIS PAGE YOU CAN DIRECTLY ACCESS OTHER LINKS Common Questions About Foreclosure Information by State Esta página en español Print version Does HUD have any programs that could help me? FHASecure, FHA's refinancing product, has helped hundreds of thousands of people who ve had difficulty making their mortgage payments. The Hope for Homeowners program will continue to aid struggling families trapped in mortgages they currently cannot afford. Under the program, certain borrowers facing difficulty making mortgage payments can refinance into affordable FHA-insured mortgages. HUD's Federal Housing Administration (FHA) has been helping families refinance into safer, more affordable mortgages for nearly 75 years. Find out if you qualify for assistance through FHASecure by: Contacting a local, HUD-approved housing counseling agency; Contacting the HOPE NOW Alliance at (888) 995-HOPE; or Calling FHA at (800) CALL-FHA. Is it free/how much will it cost? HUD approves housing counseling agencies throughout the country who give advice free or at low cost. You can search online for a counseling agency near you, or call HUD's interactive voice response system at: (800) Can I keep my home? The best way to keep your home is to ACT NOW!! Contact your lender and follow these steps for help in keeping your home. What are my options? Lenders want to help borrowers keep their homes. Foreclosure is expensive for lenders, mortgage insurers and investors. There are a number of options that may work for you. What do I do with all the mail from my lender?

6 Open it! The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court. What is the first thing I should do? Don't ignore it because the problem won't go away! Pick up the phone and talk to your lender. Most of us are embarrassed to discuss our money problems with others or believe that if lenders know we are in trouble, they will rush to collection or foreclosure. In reality, lenders want to help borrowers keep their homes and have workout options to help you keep your home. Foreclosure is expensive for lenders, mortgage insurers and investors. Who is my servicer? How can I contact them? What do I say and what do I need? If you're having trouble finding a phone number for your lender, check: Your monthly mortgage billing statement Your payment coupon book The website for your lender When you call your lender, it will be helpful to have the following information ready: Your loan account number A brief explanation of your circumstances Recent income documents (such as Pay stubs; Benefit Statements from Social Security, Disability, Unemployment, Retirement, or Public Assistance. If you are Selfemployed, have your tax returns or a Year-to-date Profit and Loss Statement available for reference) List of household expenses Who can I talk to if I have questions? Talk to a HUD approved housing counseling agency, or to your local HUD office. Are there resources in my state that can help me? Resources will vary state to state, so you will need to check for local resources or talk to a HUD approved housing counseling agency. Content current as of 30 September 2008 U.S. Department of Housing and Urban Development 451 7th Street, S.W., Washington, DC Telephone: (202) Find the address of a HUD office near you

7 This page is located on the U.S. Department of Housing and Urban Development's Homes and Communities Web site at IF YOU LOG ONTO THIS PAGE THEN YOU DIRECTLY ACCESS OTHER LINKS Are you at risk of foreclosure and losing your home?foreclosure doesn't happen overnight Have you missed your house payment? Search for a HUD-approved housing counselor, or Call Toll Free (800) to find a Housing Counselor near you, or Call the HOPE NOW Alliance at (888) 995-HOPE. Information by State Esta página en español Print version Haven't missed a house payment yet, but afraid you might? Has your financial situation changed due to a mortgage payment increase, loss of job, divorce, medical expenses, increase in taxes or other reasons? Is your credit card debt becoming unmanageable? Are you using your credit cards to buy groceries? Is it becoming difficult to pay all your monthly bills on time? If it s becoming harder to make your house payment each month: Contact a HUD-approved Housing Counselor, or Call Toll Free (800) to find a Housing Counselor near you. Read our Tips for Avoiding Foreclosure at Few people think they will lose their home, they think they have more time. Here's how it happens. Note: Timeline varies by state. First month missed payment your lender will contact you by letter or phone. A housing counselor can help. Second month missed payment your lender is likely to begin calling you to discuss why you have not made your payments. It is important that you take their phone calls. Talk to your lender and explain your situation and what you are trying to do to resolve it. At this time, you still may be able to make one payment to prevent yourself from falling three months behind. A housing counselor can help. Third month missed payment after the third payment is missed, you will receive a letter from you lender stating the amount you are delinquent, and that you have 30 days to bring your mortgage current. This is called a "Demand Letter" or "Notice to Accelerate". If you do not pay the specified amount or make some type of arrangements by the given date, the lender may begin foreclosure proceedings. They are unlikely to accept less than the total due without arrangements being made if you receive this letter. You still have time to work something out with your lender. A housing counselor can still help. Fourth month missed payment now you are nearing the end of time allowed in your Demand or Notice to Accelerate Letter. When the 30 days ends, if you have not paid the full

8 amount or worked our arrangements you will be referred to your lender's attorneys. You will incur all attorney fees as part of your delinquency. A housing counselor can still help you. Sheriff's or Public Trustee's Sale the attorney will schedule a Sale. This is the actual day of foreclosure. You may be notified of the date by mail, a notice is taped to your door, and the sale may be advertised in a local paper. The time between the Demand or Notice to Accelerate Letter and the actual Sale varies by state. In some states it can be as quick as 2-3 months. This is not the move-out date, but the end is near. You have until the date of sale to make arrangements with your lender, or pay the total amount owed, including attorney fees. Redemption Period after the sale date, you may enter a redemption period. You will be notified of your time frame on the same notice that your state uses for your Sheriff's or Public Trustee's Sale. Important: Stay in contact with your lender and get assistance as early as possible. All dates are estimated, and vary according to your state and your mortgage company. Content current as of 7 October 2008 U.S. Department of Housing and Urban Development 451 7th Street, S.W., Washington, DC Telephone: (202) Find the address of a HUD office near you

9 This page is located on the U.S. Department of Housing and Urban Development's Homes and Communities Web site at IF YOU LOG ONTO THIS PAGE THEN YOU CAN DIRECTLY ACCESS OTHER LINKS Tips for Avoiding Foreclosure Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them? Don't ignore the letters from your lender Contact your lender immediately Contact a HUD-approved Housing Counseling Agency Toll FREE (800) TTY (800) If you are unable to make your mortgage payment: 1. Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house. 2. Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times. 3. Open and respond to all mail from your lender. Information by State Esta página en español Print version Related Information Resources in Your State "Tax Relief Options" Help Save My Home Relief options for FHA homeowners HUD National Servicing Center has more information on avoiding foreclosure Read the PDF version of the How To Avoid Foreclosure brochure Providing Alternatives to Foreclosure Alternatives to Foreclosure The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court. 4. Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office. 5. Understand foreclosure prevention options. Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=portal. 6. Contact a HUD-approved housing counselor.

10 The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) or TTY (800) Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage. 8. Use your assets. Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home. 9. Avoid foreclosure prevention companies. You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them. 10. Don't lose your house to foreclosure recovery scams! If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor. Content current as of 29 April 2008 U.S. Department of Housing and Urban Development 451 7th Street, S.W., Washington, DC Telephone: (202) Find the address of a HUD office near you

11 WORRIED ABOUT FORECLOSURE? OR KNOW SOMONE WHO IS? If you feel like you may be in danger of facing foreclosure; are having trouble making a mortgage payment or know someone that is; the time to call HOPE is now - Homeowner's HOPE, a counseling service provided by the Homeownership Preservation Foundation, can work with you to find a solution. The sooner you call, the sooner you can regain your peace of mind. Remember, you're not alone. Millions of people across the United States have trouble with their mortgage every year. Since 2002, our counselors have provided advice and education to more than 580,000 homeowners. WE CAN HELP Through our HOPE hotline, the Homeownership Preservation Foundation has a single mission: to help homeowners avoid foreclosure. We are an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners. The help we offer is free. Our counselors are experts in foreclosure prevention and trained to set up a plan of action designed just for you and your situation. When you talk to us, you won't be judged and you won't pay a dime. That's because we don't just offer general advice - we help you take action. Counselors will arm you with education and support that assists you in overcoming immediate financial issues...at no cost to you. Call the (888)-995-HOPE or visit our web site at WHO WE ARE The Homeownership Preservation Foundation is a 501(c) (3) nonprofit which creates partnerships with local governments, nonprofit organizations, borrowers and lenders to help families overcome obstacles that could result in the loss of their homes. We use exciting programs like our highly successful HOPE - the Homeowner's HOPE Hotline - to help individuals and families who are struggling financially. Thousands of homeowners have received advice, assistance and support to help them stay in their homes. At HPF, we believe that the strength of a neighborhood comes from the strength of its neighbors. By developing an innovative process to support the relationship between local governments, nonprofits, lenders and homeowners, we strive to be a leader in preventing foreclosures by fostering responsible financial habits for people at risk of losing their homes. The Foundation also helps open the lines of communication between homeowners, their lenders, and available community resources.

12 MAKING THE CALL What to expect First and foremost, expect to speak with a respectful, non-judgmental counselor who wants to help you. After an introduction and an explanation of your counselor's role in the process, you'll be asked about the reason you called. When it comes to discussing finances revolving around foreclosure, complete honesty is the best policy. The more focused a picture we have of your financial situation, the better equipped we are to help you deal with it. After your counselor accurately restates your challenge, you'll lay out goals together, and you'll receive recommendations on how to accomplish those objectives. What to have ready Have a list of the major bills you pay every month at hand when you call. Chief among these should be your mortgage payment statement complete with your mortgage loan number. Having this information close will help your counselor build an accurate assessment of your financial situation. Things you should know Homeowner's HOPE provides free counseling - we do not do refinancing, down payment assistance or provide loans. But we can connect you with local nonprofit resources that provide different kinds of assistance. Although we have an excellent working relationship with many of the nation's largest mortgage companies, we cannot force a mortgage company to eliminate debt, forgive payments or dictate solutions. We are here for you 24 hours a day, seven days a week. Most importantly, we want to help. Remember, the sooner you make the courageous decision to call us, the more we can do to help you right your financial ship. Quick Tips to Avoid Foreclosure Avoid mortgage trouble by creating a monthly budget if your income is not enough to cover your budget, prioritize your expenses. If you miss a payment, you should contact your lender immediately don t wait until you re two or more payments behind! Contact reputable nonprofit organizations who will look after your best interests go to to find one in your community. Call the Homeowner s HOPE Hotline at HOPE, a nonprofit counseling resource provided by the Homeownership Preservation Foundation.

13 HOMEOWNERSHIP PRESERVATION FOUNDATION (HPF) COMMON MYTHS MYTH: My mortgage company would rather foreclose on my home than keep me in it. The mortgage company sustains an average loss of about $58,000 when foreclosure occurs (TowerGroup study). They are in the business of providing mortgages - not owning or selling homes - and would always prefer to keep you in your home. By calling the Homeowner's HOPE Hotline at HOPE, we'll help you work with your mortgage company to pay back your loan and stay out of foreclosure. MYTH: Foreclosure is an uncommon problem I m all alone in this. Foreclosure is a challenge faced by millions of Americans every year from all walks of life. Rich, poor, young, old - the list is as diverse as society itself. It's nice to know there's one place you can turn to for caring, non-judgmental advice if you find yourself struggling with your mortgage: HOPE. We'll be with you every step of the way. MYTH: I ve only missed one payment I can likely catch up. The most important thing to remember when playing catch-up with your mortgage is you owe any delinquent payments plus the current month's payment. So, if you're a month behind, you actually owe two payments - last month's and this month's. By calling HOPE right away, even before you've missed a payment, you will have more options available to you. MYTH: I ve missed too many payments to get help. There's always time to get help. We can't work miracles, but we can always give expert advice for any situation. That being said, the help we're able to offer is far more constrained if you're eight payments behind than if you're one or two behind. The sooner we can get involved, the better chance you have of avoiding foreclosure. MYTH: I m getting many offers of help from a variety of different people. Are they all scams? Because of the public nature of foreclosures, anyone is able to access foreclosure listings on a daily basis. These include the owner's name and address at the very least, and in some states, they could include other sensitive information. Armed with this data, scammers can take advantage of a desperate owner. Here's what to look for to avoid foreclosure scams: 1. Your home's ownership changes hands. A common scam is where a party buys your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little to no notice. 2. You're asked to pay something up-front and/or you're asked to stop making mortgage payments. Usually, these scams involve paying large sums of money to some sort of "foreclosure prevention service." These services offer to do what our counselors do: counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free. 3. You're under pressure to act immediately. Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization like the Homeownership Preservation Foundation. MYTH: It s impossible to stay in my house after foreclosure proceedings begin. Contrary to what you might think, there are still options available to you after the foreclosure process has started. The sooner you call us, the more tools we'll have to help you fix your situation.

14 FACT SHEET The Homeownership Preservation Foundation HPF AND THE HOMEOWNER S HOPE HOTLINE - FORECLOSURE PREVENTION EFFORTS IN In 2008, the Homeownership Preservation Foundation (HPF) and its Homeowner s HOPE Hotline ( HOPE ) worked with almost 1.2 million American homeowners and helped hundreds of thousands avoid foreclosure. In addition to a committed partnership with HUD-approved network agencies with over 550 certified counselors, HPF and the Homeowner s Hope Hotline dramatically streamlined the process by which homeowners avoided foreclosure, connected with their servicers, and moved forward toward homeownership solutions. HPF and the Homeowner s HOPE Hotline talks to and helps more struggling homeowners than any other service or organization. FACT: HPF s network of nine HUD-certified housing counseling agencies from across the U.S. offered free housing counseling to every caller in English and Spanish, as well as in 14 other languages by appointment. HPF s Homeowner s HOPE Hotline is a key player in the prevention of foreclosures in the U.S. FACT: In the first quarter of 2009, the Homeowner s HOPE Hotline received a record number - 498,569 - of calls. FACT: The Homeowner s HOPE Hotline received an average of nearly 7200 calls a day between January and March of FACT: 124,000 callers participated in counseling sessions in Q alone. HPF s Homeowners HOPE Hotline provides homeowners with options and solutions for each unique situation and ultimately succeeds in providing to many struggling homeowners the keys, avenues, and options whereby they avoided foreclosure. FACT: Counselors analyze each caller s budget and financial situation, prepare a plan of action for moving forward and recommend the best solutions for each situation. FACT: About 70 percent of homeowners avoided foreclosure one year after receiving counseling from HPF s Homeowner s HOPE Hotline 1. The Homeowner s HOPE Hotline plays a key role in the prevention of foreclosure standing out as a resource to which struggling homeowners continue to turn for help before they fall behind on their mortgage payments. FACT: 35 percent of callers counseled by the Hotline in Q were either not delinquent or less than thirty days delinquent on their loan at the time of calling the Hotline. HPF AND THE HOMEOWNER S HOPE HOTLINE - FORECLOSURE PREVENTION GOALS IN 2009 HPF and its partner agencies are committed to providing quality housing counseling to help homeowners avoid foreclosure both now and in the future. By continuing to collaborate with key partners, HPF and the Homeowner s HOPE Hotline will remain the homeowner s ally and the source to which struggling homeowners turn for help and hope. GOAL: Continue to meet the growing demand for free housing counseling. Work with more than 1.5 million homeowners in Demand for the housing counseling services provided by HPF and the Homeowner s HOPE Hotline is on a steep upward trend. HPF needs continued financial support to meet the growing demand. Gather and report relevant data to discover further innovative efforts to educate and help homeowners. GOAL: Continue to increase financial literacy through housing counseling. Focus on providing quality housing counseling services that educate callers and enable them to set and obtain realistic homeownership goals. Arm every homeowner with the necessary tools to make informed choices, goals and plans for homeownership. GOAL: Work closely with the Obama Administration, HUD, Treasury, legislators and regulators to continue to eradicate the existing foreclosure and economic crises. 1 September 2008 CCCS of Atlanta Research Department

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17 MORTGAGE ASSISTANCE PILOT (MAP) PROGRAM GUIDELINES New Jersey Housing and Mortgage Finance Agency Updated April 6, 2009 Program Overview The Mortgage Assistance Pilot (MAP) program provides temporary financial assistance to income-eligible homeowners who wish to remain in their homes but are in imminent danger of foreclosure due to short-term financial problems beyond their control. Eligible Applicants Eligible applicants must be in imminent danger of homelessness due to one of the two following circumstances: (1) the household is experiencing a loss of income for a limited period of time such as temporary unemployment, medical disability or emergency, loss or delay in receipt of other benefits, natural or man-made disaster, or a substantial and permanent change in household composition, and the household is experiencing one of the following: is 60 days or more in arrears on mortgage payments, or has been served with a notice of intention to foreclose pursuant to the New Jersey Fair Foreclosure Act, N.J.S.A. 2A:50-53, or has received a comparable notice indicating that a complaint for foreclosure may be filed within thirty days of applying for assistance, or has been served in any legal manner with notice of tax or municipal lien foreclosure including, without limitation, a notice of intent to foreclose pursuant to N.J.S.A. 54:5-97.1, as amended, or has been served with a notice of complaint in foreclosure. (2) the household s mortgage is in default, or is about to become unaffordable to the household within 90 days because the mortgage is inappropriate for the household s size, budget and credit rating and has one or more of the following attributes: is an interest-only mortgage with a future interest reset rate contains a payment option plan or a pick a payment plan contains a negative amortization schedule is a subprime mortgage has a reset mortgage interest rate that increases the interest rate contains prepayment penalties; or is a high cost home loan as defined under the New Jersey Home Ownership Security Act of Maximum Borrower Income Limits An applicant s income must be less than 120% of the average median income as defined in guidelines published annually by the United States Department of Housing and Urban Development. An applicant must exhaust all other available financial resources first before qualifying for assistance. No household shall be eligible for assistance in the event of initiated or ongoing bankruptcy proceedings. Eligible Property The applicant must own and occupy a single family, one-unit home (an attached or detached house or a condominium unit) or a twofamily home or a three-family home located in New Jersey and must have resided in the home as a primary residence for at least one year prior to applying for assistance. The applicant is not permitted to own other real estate at the time of application. Mortgage Loan Terms and Repayment All assistance shall be in the form of a loan secured by a mortgage that may take any lien position on the home. This mortgage loan shall require no monthly payments. The full principal amount shall be due and payable upon the sale or upon the transfer or upon the cash-out refinance of the property or if the applicant ceases to occupy the property as his/her primary residence. Maximum Mortgage Loan Amount The maximum mortgage loan amount shall be $20,000. The applicant s total debt-to-income ratio post-intervention may not exceed 50% of gross monthly income (the Agency will consider 60% max only if there is evidence an applicant can support higher levels of debt). Mortgage Loan Interest Rate The mortgage loan shall carry a zero-percent (0%) interest rate. Maximum Period of Assistance The applicant must show evidence of the ability to resume paying housing costs at the end of the assistance period. Counseling Applicants must participate in a budget counseling session(s) approved by the Agency.

18 MORTGAGE STABILIZATION PROGRAM (MSP) GUIDELINES New Jersey Housing and Mortgage Finance Agency Dated April 6, 2009 Program Overview The Mortgage Stabilization Program (MSP) provides financing that encourages home mortgage lenders to help eligible homeowners in imminent danger of foreclosure by modifying or refinancing their mortgage loans so that resulting monthly payments are affordable and sustainable. Eligible Homeowners Eligible homeowners must be in imminent danger of losing their homes as a result of having a first mortgage loan payment (the total of principal, interest, taxes, insurance and homeowners association fee or condominium fee) that exceeds, or will exceed upon the next reset, 33% of gross monthly household income OR, if applicable, the percentage required for FHA or other governmental or private first mortgage insurance. Maximum Eligible Homeowner Income Limits An eligible homeowner s income must not exceed 120% of the area median income as defined in guidelines published annually by the United States Department of Housing and Urban Development OR must not exceed the NJ Housing and Mortgage Finance Agency s Mortgage Revenue Bond program income limits, whichever is greater. An eligible homeowner must exhaust all other reasonably available financial resources first before qualifying for assistance. Eligible Property An eligible homeowner must own and occupy in New Jersey a single family, one-unit home (an attached, semi-detached, or detached house or a condominium unit) or an owner-occupied two-unit or three-unit home and must have resided in the home as a primary residence for at least one year prior to applying for assistance. The homeowner is not permitted to own other real estate at the time of application. Eligible Lenders An eligible lender is any lawfully constituted mortgage lender, mortgage investor or mortgage loan servicer that owns and is willing to refinance or is authorized to negotiate the terms of the eligible applicant s mortgage. Lender participation is voluntary. Eligible First Mortgage Loans MSP assistance is available when an eligible lender modifies or refinances the eligible homeowner s existing first mortgage loan so that the new first mortgage loan amount: is less than the current appraised value of the home results in a monthly first mortgage loan payment (the total of principal, interest, taxes, insurance and homeowners association fee or condominium fee) that does not exceed 33% of the eligible homeowner s gross monthly household income OR the applicable percentage required for FHA or other governmental or private first mortgage insurance, whichever is greater, AND MSP Second Mortgage Loans Once any interest rate, term and principal balance reduction decisions for the modified or refinanced first mortgage loan are determined, the program shall provide a non-amortizing (no monthly payment) second mortgage loan in an amount equal to not more than ½ of the difference between the new first mortgage loan amount and the current appraised value of the home or the current outstanding principal balance of the existing mortgage loan, whichever is less. The MSP loan is capped at $25,000 and the proceeds of the loan shall be provided to the lender holding the mortgage that is being modified or refinanced. The eligible lender would also provide a non-amortizing (no monthly payment) loan sharing co-equal second mortgage position with the MSP loan. The eligible lender s loan amount must equal at least ½ of the difference between the new first mortgage loan and the current appraised value of the home or the current outstanding principal balance of the existing mortgage loan, whichever is less. MSP interest Rate and Term The MSP second mortgage loan and the eligible lender s second mortgage loan shall each have an interest rate and a term identical to the interest rate and term of the modified or refinanced first mortgage loan, and the second mortgages and the modified first mortgage will be co-terminus. MSP Loan Repayment The MSP second mortgage loan and the eligible lender s second mortgage loan may be prepaid at any time without penalty and shall be repaid on a proportional basis by the homeowner out of the net sale proceeds from the sale of the home. Refinances will not be permitted except for Agency-approved emergency repairs or unless the Agency and lender mortgages are repaid in full. Payments made towards MSP second mortgage loans shall be deposited into a Mortgage Stabilization Program Fund. Maximum Debtto-Income Ratio The eligible homeowner s maximum total debt-to-income ratio post-intervention should not exceed 50% of gross household monthly income (or up to 60% if there is evidence the homeowner can support this). Notwithstanding, this ratio will be further subject to FHA or other governmental or private mortgage insurance limitations if applicable. Subordinated Debt If the eligible homeowner has existing subordinated mortgage loan(s) held by one or more entities, they must agree to take subordinated mortgage position(s) behind the MSP s and the eligible lender s second mortgages. Notwithstanding, the MSP program and/or the eligible lender may, at their discretion, use their second mortgage loan financing per these guidelines to help satisfy subordinated debt. MSP financing may be made in coordination with the Agency s Mortgage Assistance Pilot (MAP) loans when additional funds are needed to reduce the eligible homeowner s new first mortgage loan payment or to help cover transactional or other related costs. Counseling Eligible homeowners must participate in a budget counseling session(s) approved by the Agency.