Foreclosure Prevention
Counseling Workshop
Counselor role and process
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The counselor will look at all of your documents to assess your situation
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The counselor will lay out all of your options
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The counselor will make sure you understand these options and what
documents are needed in order to pursue this option
Homeowners role and process
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Homeowner will decide which option they would like to pursue
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Homeowner will turn in all documents by the date set by counselor
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Homeowner will come to set appointment on-time
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Homeowner will notify counselor or assistant of any items requested from
Mortgage company by phone or mail as soon as possible
Filling out intake documents
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Please make sure to fill out intake forms completely
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Make sure to sign and date all documents requiring signature and date.
Filling out Monthly
expense Sheet
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1st column put all of your expenses that youACTUALLY PAY a month
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2nd column – put the amount you aredelinquent on this account
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3rd column – put the balance that is left of thisaccount
*Make sure you put all expenses and debt so
counselor can get a good picture of your situation *Expenses and Debt are used for calculations for all programs
Monthly Expenses Monthly Expense Delinquency Status Balance Miscellaneous: Savings Housing Mortgage/Rent Homeowners/Renter Ins. Maintenance Taxes Association Fee Pest Control Utilities Water Electric Trash Gas Cable Internet
Phone Local / Long Distance Cellular
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:
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Why you fell behind or are going to fall behind – loss of job, reductions in hours,
disability, death, divorce or separation.
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If you are still having this hardship or has it been resolved
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What you are doing to improve your situation
DOCUMENTS REQUESTED
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The documents requested are needed in order to determine the best
options for you
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Missing documents will delay assistance
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We DO NOT ACCEPT originals, you must make copies or you can make
them here for $0.10 a page
DOCUMENTS REQUESTED (cont.)
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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
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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
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The foreclosure prevention programs are based on qualifications and are
NOT GUARANTEED
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After assessing your income, debt and expenses, we will give you the
options available based on your situation
List of Programs
UP/Unemployment Program or Forbearance Program
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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 limitYour 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
List of Programs
Modification
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.
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If you qualify a modification they will:
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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 loanList 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
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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 wayList 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
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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 balanceList of Programs
Or you can try for a:
Deed in Lieu
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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.
There is a 5 questions test that must be taken and submitted in order for us to complete the intake process.
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.
