Foreclosure Prevention Counseling Workshop
Counselor role and process The counselor will look at all of your documents to assess your situation The counselor will lay out all of your options The counselor will make sure you understand these options and what documents are needed in order to pursue this option
Homeowners role and process Homeowner will decide which option they would like to pursue Homeowner will turn in all documents by the date set by counselor Homeowner will come to set appointment on-time Homeowner will notify counselor or assistant of any items requested from Mortgage company by phone or mail as soon as possible
Steps in Foreclosure Counseling
Filling out intake documents Please make sure to fill out intake forms completely Make sure to sign and date all documents requiring signature and date. Only the homeowners must sign these documents
Filling out Monthly expense Sheet 1 st column put all of your expenses that you ACTUALLY PAY a month 2 nd column put the amount you are delinquent on this account 3 rd column put the balance that is left of this account *Make sure you put all expenses and debt so counselor can get a good picture of your situation Miscellaneous: Housing Utilities Phone Monthly Expenses Savings Mortgage/Rent Homeowners/Renter Ins. Maintenance Taxes Association Fee Pest Control Water Electric Trash Gas Cable Internet Local / Long Distance Monthly Expense Delinquency Status Balance *Expenses and Debt are used for calculations for all programs Cellular Other
Writing a Hardship Letter The hardship must be at least one full page long or you may use the hardship letter in the intake packet. Make sure to explain: Why you fell behind or are going to fall behind loss of job, reductions in hours, disability, death, divorce or separation. If you are still having this hardship or has it been resolved What you are doing to improve your situation Make sure to sign and date the letter
DOCUMENTS REQUESTED The documents requested are needed in order to determine the best options for you A Credit Report is required from all 3 credit bureaus for assistance and will delay the process if missing at the time of your initial appointment Missing documents will delay assistance We DO NOT ACCEPT originals, you must make copies or you can make them here for $0.10 a page
DOCUMENTS REQUESTED (cont.) The 4506T document is requested because it is required by the IRS to make sure what you are reporting for a modification matches what they have in their file The RMA or Request for Modification or the Form710 are the is packets the mortgage companies require in order to apply for any mortgage assistance programs. ( we will go more into detail about this form in the appointment)
Programs for Foreclosure prevention The foreclosure prevention programs are based on qualifications and are NOT GUARANTEED After assessing your income, debt and expenses, we will give you the options available based on your situation You will make the final decision on which route you would like to take.
List of Programs UP/Unemployment Program or Forbearance Program Unemployment program or Forbearance, must be receiving Unemployment Benefits or received Unemployment benefits in the last 6 months Must be facing a financial hardship Cannot be more than 12 months behind on loan Can be current but will fall behind soon Can be approved for 3, 6, 9 or 12 months. 12 months is the limit Your payment can be lowered, or stopped completely. REMEMBER, you will owe what isn t paid in full once the program is over and your credit will be negatively impacted
Modification List of Programs There are several different types of modifications we will try to qualify you for, modifications are based on qualifications such as your debt and income being within the qualification guidelines and you must have faced a financial hardship. If you qualify a modification they will: Put what you owe back into your loan If possible, bring down your interest rate, by bringing down interest rate your monthly payment will also go down In order to do the modification they WILL EXTEND OR ADD ON to the years left to pay on your loan
List of Programs If we cannot qualify you for any of the previously mentioned programs, then the only other options are to transition out of the house. There a three different programs to assist you with this before your house goes into foreclosure: Full Sale If time permits and it is determined that the house is no longer affordable, you can put the home on the market for a full sale. Your house must be worth more than what is owed and you will be able to receive the most funds by selling your home this way
List of Programs If you do not have enough equity in your home to pay off what you owe and you file is already in foreclosure status (almost going to be foreclosed) you can do either a: Short-Sale Selling the home when there isn t enough equity in the home to pay off the entire amount due and the lender has agreed to accept the lesser amount You may qualify for relocation funds to help you move out of the home and get settled in an affordable house or apartment **This depends on your loan and qualifications*** Keep in mind if you do sell for less that amount due they lender can require you to pay the remaining balance
Or you can try for a: List of Programs Deed in Lieu This is where you transfer the title of the home back to the lender You must try selling the home at a full-sale or short-sale first You may qualify for relocation funds to help you move out of the home and get settled in an affordable house or apartment **This depends on your loan and qualifications*
List of Programs With a Full-sale, Short-sale or Deed in Lieu these programs are when a no other options are available for you to stay in the house and it has been determined the house is not longer affordable for you. We will help look for something more affordable and by participating in these programs you are avoiding a Foreclosure being put on to your credit, which usually stay on your credit anywhere from 7 to 10 years. Once you are back on your feet, it will be easier to purchase a more affordable home in the future.
Overview We look forward to working with you and hope you understand how intense this process is. We will need to work together in order to get the best results for you and your family. Once we have received all the documents, verified you reviewed the workshop, answered the questions and submitted the test, we will call you to schedule your appointment. THANK YOU.