Foreclosure Prevention Resource Guide Summer - Fall 2010
Foreclosure Prevention Resource Guide Summer - Fall 2010
Resource Guide
Table of Contents
Letter from the President/CEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Quick Contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Section I: What is mortgage foreclosure and how does it work?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Foreclosure Chart . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 The Foreclosure Process Explained . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 How can I prevent the Sheriffs Sale? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 County Office Contact Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Section II: How can I prevent mortgage foreclosure? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Housing Counseling and Preventing Foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Mortgage Foreclosure Rescue and Loan Modification Scams . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .16 Im not in foreclosure, but struggling to make my mortgage payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 FHA Rate and Term Refinances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18 HOPE for Homeowners (H4H) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .19 Homeowners Equity Recovery Opportunity Loan Program (HERO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Home Affordable Refinance Program (HARP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .21 REfinance to an Affordable Loan Program (REAL) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 PHIL-Plus and Mini-PHIL Home Improvement Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23 Emergency Food and Shelter Program (EFSP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Preserving Homeownership And Savings Education Strategies (PHASES) Grant . . . . . . . . . . . . . . . . . . . . . . . . . . .25 Ive received a notice and am in foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Foreclosure Prevention Remediation Loan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 Homeowners Emergency Mortgage Assistance Program (HEMAP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 Home Affordable Modification Program (HAMP) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 HAMP Application . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32 Second Lien Modification Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 Unemployment Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 City of Philadelphias Residential Mortgage Foreclosure Diversion Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35 Bucks County Diversion Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 Delaware County Mortgage Foreclosure Diversion Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .37 Section III: How do I prevent tax delinquency foreclosure? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .38 City of Philadelphias Financial Hardship Agreements for Property Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .39 Suburban Philadelphia Agreements for Delinquent Property Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 County Specific Information for Delinquent Property Tax Agreements (by county). . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 Section IV: If losing my home is inevitable, what are my options? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Short Sales and Deed-in-Lieu of Foreclosure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 Deed For Lease (D4L) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 Housing Counseling Agency Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .46 Samples of Notices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48 Act 91 Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 Complaint . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Important Notice . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .50 Judgment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 Sheriffs Sale Scheduled . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm
July 2010
Dear Friends: We are pleased to present the Summer/Fall 2010 edition of the Foreclosure Prevention Resource Guide. Two years ago, when the Coalition published its first Guide, it was thought that this publication would be used solely as a tool for housing specialists. Now it is used by a wide range of professionals who offer support to families facing foreclosure, including social workers, community leaders, pastors, and human resource professionals. Our community partners are distributing the Guides at housing fairs, community events, foreclosure training conferences, and first-time homebuyer workshops. To date, approximately 7,000 copies have been distributed throughout the five-county Philadelphia Region and, due to its success, it is being replicated by other cities in Pennsylvania. The causes of foreclosure are varied, from unemployment and falling property values to bad loans and scams. Hope Katz, a Housing Counselor of Consumer Credit Counseling Services of Delaware Valley, keeps a Guide on his desk and refers to it often. Im a new counselor with a mortgage background. I thought I knew about the foreclosure process, but found out I had a lot to learn when I became a counselor. Because of information in the Guide, I was able to help save a clients home from Sheriffs Sale! Thanks to the insights and feedback from members of the Coalitions Foreclosure Prevention Task Force, a group consisting of representatives from banks, public interest attorneys, and housing advocates, we revise the Guide periodically with real-time information. We hope this Guide will continue to help better serve your clients. To view the guide online, please visit www.uac.org/ foreclosurehelp.htm. For free printed copies, please e-mail [email protected]. Sincerely,
Purpose
This resource guide is intended to raise awareness about the home foreclosure process, related grant and loan programs and housing counseling resources for the five-county Philadelphia metropolitan area. The Guide is designed to help professionals who encounter homeowners facing foreclosure, as well as to demystify the foreclosure process for homeowners and help them take advantage of the opportunities to preserve ownership of their homes. Please contact the individual administering agencies for more information.
Your Feedback
We welcome your feedback, additions or corrections: please contact Don Kelly (215-851-1738; [email protected]). An electronic version of the Guide will be updated periodically and posted online at www.uac.org.
Disclaimer
While this document represents our updated research, UAC does not guarantee the accuracy or timeliness of the information below. We strongly suggest contacting the administering agency for further information. The law often changes. Each case is different. This resource guide is meant to provide general information and is not intended to provide any specific legal advice.
Prepared By
Roger Ashodian UAC Foreclosure Prevention Task Force Member Urban Affairs Coalition Community Legal Services
UACs Mission
UAC unites government, business, neigborhood and individual initiatives to improve the quality of life in the region, build wealth in urban communities and solve emerging issues. Hardik Savalia Jennifer Schultz
Edited By
Rachel Moore Maurie Smith Urban Affairs Coalition Urban Affairs Coalition
Quick Contacts
Visit us on the Web: www.uac.org/foreclosurehelp.htm
Phone Contacts
Foreclosure Hotlines SaveYourHomePhilly Hotline Dont Borrow Trouble Hotline (Suburban Philadelphia) Pennsylvania Housing Finance Agency Hotline Housing Counseling 215-334-HOME 888-275-8843 800-822-1174 www.phila.gov/ohcd www.dontborrowtroublesepa.org www.phfa.org
Homeownership Counseling 215-731-1723 Assoc. of Delaware Valley (see full list of agencies in the Housing Counseling Agency Directory) Fannie Mae Freddie Mac Community Legal Services Philadelphia Legal Assistance Legal Aid of Southeastern PA 1-800-7FANNIE 1-800-FREDDIE 215-227-2400 215-981-3800 877-429-5994 215-238-6333 888-991-9922
610-429-1500 610-566-6625 610-279-9660
www.hcadv.org
www.fanniemae.com/loanlookup www.freddiemac.com/mymortgage www.clsphila.org www.philalegal.org www.lasp.org www.lris.philadelphiabar.org www.bucksbar.org/ Lawyer_Referral_Service.html www.chescobar.org/public/lrs.html www.delco.pa.barristersclub.com/about/ about_elrs.asp?ref=dcba www.montgomerybar.org/public/lrs/ index.php www.uac.org www.phillysheriff.com/homeloss.html www.buckscounty.org/government/ rowofficers/sheriff/index.aspx www.dsf.chesco.org/sheriff/cwp/ view.asp?a=3&q=609171 www.co.delaware.pa.us/sheriff/ index.html www.sheriff.montcopa.org/sheriff/site/ default.asp
Lawyer Referral
Philadelphia Bar Association Lawyer Referral Service Lawyer Referral Service of Bucks County Bar Association Chester County Lawyer Referral Service Lawyer Referral Service of the Barristers Club of Delaware County Lawyer Referral Service Montgomery County Bar Association
Other
Urban Affairs Coalition Philadelphia County Sheriffs Office Bucks County Sheriffs Office Chester County Sheriffs Office Delaware County Sheriffs Office Montgomery County Sheriffs Office
www.philadelphiafed.org/foreclosure (For consumer information, community resources, research and publications, policies and regulations and news.)
Section I:
Foreclosure Chart
This chart is meant to give you an idea of what happens if you do not do anything to stop the foreclosure. The chart shows the shortest amount of time that can pass between each step. At each step, there are actions you can take to defend against foreclosure that will also result in extending the timeline below. The following section explains each step in detail.
Current
I am behind on my mortgage payments
1 month
More than 60 days
2 months
At least 30 days
I received an ACT 91 NOTICETAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE OR I received a Notice of Intention to Foreclose (See example on Page 48) I received a Complaint
(See example on Page 49)
3 months
At least 20 days Conciliation Conference (Philadelphia only)
4 months
At least 10 days
5 months
6 months
There are still things that you can do before the Sheriff s Sale to try to save your house.
7 months
Varies from 2 to 5 months
8 months
9 months
10 months
See Eviction Timeline by County for information on Sheriff s Sale schedules and move out procedures.
complaint, the mortgage company lawyer must send you a notice of default, informing you that you have not responded to the complaint and that judgment can be entered against you if you do not file a response in the Common Pleas Court within 10 days of the Notice (the day it was sent, not the day you receive it).
home, only the Sheriff can. They may ask or demand that you leave, but you can choose to remain in possession of the house until a separate court case, called an ejectment action, is brought against you and won by the new owner. Again, the mortgage company or other buyer at the Sheriffs Sale must file another complaint in the local Common Pleas Court, this time claiming that you no longer have a right to possess your home because you lost legal title to it in the Sheriffs Sale. NOTE: If you choose to remain in the house, the new owner has the right to demand fair market value rent. Often, they do not try to collect this, but you should know they can demand that money in the ejectment suit. Service of the ejectment complaint. The Sheriffs office in your county must hand deliver a copy of the ejectment complaint to each adult person in possession of the house (unless the Court has permitted a different form of service). Responding to the ejectment complaint. You have 20 days from the date the Sheriff delivered the complaint to respond to the complaint, by filing either preliminary objections or an answer, in the Common Pleas Court. You must also serve (send by mail) a copy to the lawyer for the mortgage company or other buyer. If you do not file a response to the ejectment complaint, the lawyer for the mortgage company or other buyer must send you a notice of default (entitled Important Notice), informing you that you have not responded to the complaint and that judgment can be entered against you if you do not file a response in the Common Pleas Court within 10 days of the Notice (the day it was sent, not the day you receive it).
Rescue Loans
There are programs designed to help people get out of predatory mortgages and in exchange give people fairlypriced loans. These programs differ in their requirements, application policies and other rules.
Right to Reinstate
Up until one hour before the Sheriffs Sale, you can reinstate the mortgage by paying the mortgage company any missed payments, late charges, court costs and attorneys fees. Be careful that you are not charged excessive attorneys fees because they must be reasonable and actually paid by the mortgage company. There are several ways to get money to reinstate. Pennsylvania runs a program called HEMAP, which helps homeowners bring their mortgages current. Other local organizations provide grants to help bring loans current.
Petition to Stay
You can try going to a judge and asking him or her to postpone the sale while you work out the problem. The courts call this staying the sale. You have to file a formal motion with the court to do this. Philadelphia County has created a form petition designed for people without lawyers. In some instances, the judge may require you to provide protection to the mortgage company for the costs of the delay. This protection is often in the form of a bond or money deposit, with the court. Staying the sale does not stop it forever, it only postpones it. You still need to come up with a way to resolve mortgage delinquency.
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Chester County
Length of time between filing writ of execution and date of Sheriffs Sale: Approximately three months (see schedule available from website: www.dsf.chesco.org/sheriff/cwp/view. asp?A=3&Q=609171#2005); sales take place on the 3rd Thursday of each month at 11:00 a.m., except December and are held at the Chester County Justice Center, Sheriffs Department, 201 West Market Street, Suite 1201, in a Courtroom to be assigned the week of the sale. Procedure once judgment is entered and writ of possession is filed in post-foreclosure ejectment action: Notice provided. Length and specificity of notice to former owner and/or occupants regarding forcible eviction: Sheriffs deputy serves former owner/occupants with writ of execution and provides between 6 and 30 days notice of the date of forcible ejectment (usually the actual length of notice is about three weeks); a particular date for the eviction is provided on the writ posted on the property to the former owner/occupants of the property; the mortgage companys law firm or that of any other new owner of the property must confirm that they are ready to proceed 24 hours in advance of the scheduled ejectment date and arrange for a locksmith; the former owner/occupants are given the opportunity to take any possessions with them that they can put in their vehicle or otherwise remove from the premises and can designate their own storage facility in lieu of the storage facility arranged by the mortgage company or other new owner of the property. Other information provided: $2,000 deposit must be posted by the mortgage companys law firm at the time of filing the writ of execution to have the property listed for Sheriffs Sale to cover the Sheriffs Fees and advertising costs; the unused portion will be returned either after the sale or if the case is resolved and the sale does not take place. General Sheriffs office website link for more information and Sheriffs Sale listings: dsf.chesco.org/sheriff/cwp/view.asp?a=3&q=609171#2005 Contact information: Office of the Sheriff Chester County Justice Center Carolyn B. Welsh, Sheriff 201 West Market Street, Suite 1201 West Chester, PA 19380-0991 Phone: 610-344-6850
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Delaware County
Length of time between filing writ of execution and date of Sheriffs Sale: Approximately three months, in accordance with a schedule of deadlines for getting all paperwork in to schedule a Sheriffs Sale on a property. Please visit www.co.delaware.pa.us/sheriff/ sheriffsaledeadlines.html to see the schedule. Sales take place about three months after the paperwork has been submitted, on the third Friday of each month at 11:00 a.m. (unless the third Friday is a holiday, when the sale will be held on Thursday) and are held in the County Council Meeting Room on the first floor of the Government Center Building, Delaware County Court House, Front Street & Veterans Square, Media, PA 19063. Procedure once judgment is entered and writ of possession is filed in post-foreclosure ejectment action: Notice provided. Length and specificity of notice to former owner and/or occupants regarding forcible eviction: Approximately two weeks by Sheriffs Office practice (but in special circumstances a former owner/occupant could be ejected without notice); first the writ of possession is served; then, unless special circumstances justify an ejectment without further notice, a date is provided to the former owner and/or occupants by mail and posting of the property on a form used by the Sheriffs Office; a $250 deposit must be posted by the mortgage companys or new owners law firm for Sheriffs costs in the ejectment action and the firm must arrange for a locksmith, bonded moving company and a storage facility within Delaware County for entry and removal of any personal possessions still at the premises and confirm these arrangements with the Sheriffs office 2 days in advance of the scheduled date for the ejectment or the ejectment is postponed and must be rescheduled. Other information provided: $2,000 deposit must be posted by the mortgage companys law firm at the time of filing the writ of execution to have the property listed for Sheriffs Sale to cover the Sheriffs commission and advertising costs; the unused portion will be returned either after the sale or if the case is resolved and the sale does not take place. General Sheriffs office website link for more information and Sheriffs Sale listings: www.co.delaware.pa.us/sheriff/realestate.html Contact information: Sheriffs Office Joseph F. McGinn, Sheriff Delaware County Court House 201 W. Front Street, Room 101 Media, PA 19063 Main Number: 610-891-4296 FAX: 610-891-1765 Real Estate: 610-891-4305
Montgomery County
Length of time between filing writ of execution and date of Sheriffs Sale: Approximately two months (see schedule available from website sheriff.montcopa.org/sheriff/cwp/view,a,1529,q,41042.asp); sales generally take place on the last Wednesday of each month at 1:00 p.m. and are held in Courtroom A at the Montgomery County Courthouse, Swede and Airy Streets, Norristown, PA 19404. Procedure once judgment is entered and writ of possession is filed in post-foreclosure ejectment action: Notice provided. Length and specificity of notice to former owner and/or occupants regarding forcible eviction: Sheriffs deputy serves former owner/occupants with a Writ of Possession and provides a 30 day notice to vacate the property. After 30 days has expired Sheriffs Deputies will schedule a date for eviction; the mortgage companys law firm must provide a moving truck and storage facilities for any personal possessions still at the premises. Other information provided: $3,020 deposit must be posted by the mortgage companys law firm at the time of filing the writ of execution to have the property listed for Sheriffs Sale to cover the Sheriffs commission and advertising costs; the unused portion will be returned either after the sale or if the case is resolved and the sale does not take place. General Sheriffs office website link for more information and Sheriffs Sale listings: sheriff.montcopa.org/sheriff/cwp/view,a,1529,q,41007.asp Contact information: Montgomery County Sheriffs Department Alfred J. Ricci, Acting Sheriff Court House, 1st Floor P.O. Box 311 Norristown, PA 19404 610-278-3331
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Philadelphia County
Length of time between filing writ of execution and date of Sheriffs Sale: Approximately three months between filing and sale (see schedule available on the website www.phillysheriff.com/sheriffs_sale/ sale_schedule.html). Sales generally take place on the first Tuesday of each month, check website for updates. The sales take place at 10:00 a.m. at The First District Plaza, 3801 Market Street, 3rd Floor, Philadelphia, PA. Procedure once judgment is entered and writ of possession is filed in post-foreclosure ejectment action: Notice provided. Length and specificity of notice to former owner and/or occupants regarding forcible eviction: The Philadelphia Court of Common Pleas serves the former owner/occupants with a Writ of Possession and provides a 30 day notice to vacate the property. After 30 days have expired Philadelphia Sheriffs Real Estate Division will provide the former owner/occupants with a formal eviction notice; the mortgage company must provide a moving truck, locksmith and storage facilities for any personal possessions still at the premises. Other information provided: The mortgage company must pay a $2,000 deposit at the time of filing the writ. General Sheriffs office website link for more information and Sheriffs Sale listings: www.phillysheriff.com Contact information: Philadelphia City and County Sheriffs Department John D. Green, Sheriff 100 South Broad Street, 5th floor Philadelphia, PA 19110 [email protected] Main Phone: 215-686-3530 Real Estate Phone: 215-686-3535, 3534 Real Estate Fax: 215-686-3971
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Section II:
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How can housing counselors help with foreclosure prevention and other mortgage problems?
Housing counselors can help people at risk of foreclosure. This includes people who experience a hardship in their life that makes it difficult to pay their monthly mortgage payment. Housing counselors know about programs that you can take advantage of so you can prevent losing your home. The sooner you take action, the more the counselor can help you. At this time of rising mortgage delinquencies and foreclosures, housing counselors are playing a special role to help homeowners. Counselors can evaluate homeowners options and take steps to restructure their mortgages to affordable rates. This helps to avoid delinquency and foreclosure. Since everyones situation is unique and many programs are available, it is important to receive assistance from a knowledgeable housing counselor. They will help identify and pursue the option(s) best suited to each homeowner. Housing counselors can help homeowners navigate or apply for the programs designed to prevent foreclosure and keep mortgages affordable, such as the resources listed in this publication.
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sure. And, remember, you do not have to pay to benefit from government-backed loan modification programs. 6. A company/person you dont know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or a HUD-approved counseling agency.
Information obtained from the NeighborWorks, America Loan Modification Scam Alert Campaign
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no intention of ever selling the home back to you. The terms of these deals usually make buying back your home impossible. If the new borrower defaults on the loan, youll be evicted. Variations: 1. The scammer raises your rent over time to the point that you cant afford it. After missing several rent payments, you are evicted, leaving the rescuer free to sell your house. 2. The scammer offers to find a buyer for your home, but only if you sign over the deed and move out. The scammer promises to pay you some of the profit when the home sells. But the scammer simply rents out your home and keeps the profits while your lender proceeds with the foreclosure. You lose your home and are still responsible for the unpaid mortgage, because transferring the deed does not affect your mortgage obligation. Bankruptcy to Avoid Foreclosure The scammer may promise to negotiate with your lender or get refinancing on your behalf if you pay a fee up front. Instead of contacting your lender or refinancing your loan, he pockets the fee and files a bankruptcy case in your namesometimes without your knowledge. A bankruptcy filing often stops a home foreclosure, but only temporarily. Filing bankruptcy stops any collection and foreclosure while the bankruptcy court administers the case. Eventually you must start paying your mortgage or the lender will be able to foreclose. You could lose the money you paid to the scammer and your home. Bankruptcies stay on your credit report for 10 years. This makes it difficult to obtain credit, buy a home, get life insurance or even get a job. Reverse Mortgages to Avoid Foreclosure A reverse mortgage is a loan product that was intended for senior citizens (generally 62 and over) to borrow against the equity in their home if they had other expenses to take care of but had a limited income. Reverse mortgage loans typically require no repayment for as long as you live in your home and allow borrowers to continue owning their homes. Although a reverse mortgage may be appropriate for some people, scammers picked up on this vulnerable population and used the reverse mortgage as a foreclosure rescue option for homeowners. Scammers attract seniors that are in jeopardy of losing their homes to foreclosure and promise the senior that their
reverse mortgage program will allow the senior to stay in the house. Once the senior has agreed to the plan, and a crooked appraiser inflates the value of the house, the perpetrators obtain a reverse mortgage. The property title is transferred to the perpetrator who takes ownership of the house and the equity. The seniors are then left with no money and no house.
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Mortgage Insurance:
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Contact Information:
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Contact Information:
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Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: Contact Information:
Catholic Social Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215-587-3754 Congreso . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .267-255-1674 Diversified Community Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215-336-3511 Face to Face Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215-438-7939 Pathways PA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .610-543-5022 Philadelphia Council for Community Advancement . . . . . . . . . . . . . .215-567-7803 Philadelphia Veterans Multi-Service & Education Fund . . . . . . . . . . .215-923-2600 Tenants Union Representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215-940-3900 The Partnership CDC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215-307-4917 United Communities of Southeast Philadelphia . . . . . . . . . . . . . . . .215-467-8700 x19 Utility Services Emergency Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . .215-972-5170 For More Information: www.efsp.unitedway.org
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Eligibility Requirements:
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Program:
Program Features:
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Eligibility Requirements:
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Unemployment Program
Purpose: To offer a temporary forbearance period to unemployed homeowners while they seek re-employment. Temporary forbearance of mortgage payments for unemployed homeowners. If a homeowner becomes re-employed while in forbearance, the period will end and the homeowner will be evaluated for a mortgage modification under the MHA Program. Servicers may not initiate foreclosure proceedings or conduct a foreclosure sale while a homeowner is being evaluated for the program or in the forbearance period. During the forbearance period, homeowners monthly mortgage payment must be reduced to no more than 31% (or less) of their gross monthly income. Servicer can decide to temporarily suspend payments in full. Payment amount and due dates will be decided by the servicer. Mortgage servicer may not collect late charges from the homeowner while still in the forbearance period. Applicants should learn their eligibility within ten days of submitting complete documentation to the servicer. Maximum Forbearance Period: Eligibility Requirements: Minimum of three months; maximum at mortgage servicers discretion. Mortgage must be a first lien mortgage and originated on or before January 1, 2009. Unpaid principal balance must be less than or equal to $729,750 (one-unit property). Property must be the homeowners primary residence. Mortgage has not been previously modified through HAMP. Homeowner was ineligible for HAMP. Homeowner is either behind on payments by no more than three consecutive months or can reasonably foresee they will fall behind. Total monthly mortgage payment is more than 31% of the homeowners gross monthly income. If less, at servicers discretion to offer the program. Homeowner will be unemployed at the start of the forbearance period, and is able to document unemployment benefits the month the forbearance period begins. Mortgage servicer may require that homeowners have received at least three months of unemployment benefits before they begin a forbearance period. Geographic Area Served: Costs Or Fees: All 50 states. No cost to apply. Late charges may accrue while homeowner is being evaluated for the program or in the program. United States Treasury Department together with participating mortgage servicers. Contact your mortgage servicer to determine if you qualify. Contact your mortgage servicer. The phone number is located on your monthly mortgage statement. For assistance with applying to the program, call 1-888-995-HOPE (4673) to speak with a HUDapproved housing counselor for free. For More Information: http://makinghomeaffordable.gov/pr_05112010.html
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Program Features:
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Program Features:
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Program Features:
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Section III:
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Procedures:
Contact Information:
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County Specific Information for Delinquent Property Tax Agreements (by county)
Bucks County
Special Program Features If taxes are not paid by December 31st of the year the taxes become due and payable, local tax collector returns all delinquent and uncollectables to the Tax Claim Bureau for further collection. The Bureau sends out a Notice of Claim which notifies each property owner with the delinquent taxes that a claim has been entered against the property. These notices are generally mailed by certified mail in the spring of the year after the tax was due. If homeowners are unable to pay the entire amount owed, they have until June 30th of the same year to make smaller payments until the lien is satisfied. To make this arrangement, homeowners must call the Tax Claim Bureau. Administering Agency Bucks County Tax Claim Bureau Contact Information 55 East Court Street Third Floor, Administration Building Doylestown, PA 18901 Phone: 215-348-6274 Hours: Monday through Friday 8:00 a.m. to 5:00 p.m. Additional Information www.buckscounty.org/government/departments/Finance/ TaxClaimBureau/index.aspx
Chester County
Special Program Features All real estate taxes are considered delinquent if not paid by December 31st of the current year. If homeowners are unable to pay the entire amount owed, they have until June 30th of the following year to make smaller payments until the lien is satisfied. To make this arrangement, homeowners must call the Tax Claim Bureau. Administering Agency Chester County Tax Claim Bureau Contact Information 2 N. High Street, Suite 116 West Chester, PA 19380-0991 Phone: 610-344-6360 Fax: 610-344-4722 Additional Information www.dsf.chesco.org/chesco/cwp/view.asp?a=1413&q=573807
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Delaware County
Special Program Features Monthly payment agreements are available to those who are unable to afford the standard quarterly payment. This feature is not income restricted and is open for all to apply. Costs Or Fees A service fee of $64 is added to enter the agreement. Additional fees are incurred from time to time to cover costs of delinquency notification and for documentation prior to the ultimate sale of the property. Procedure If the homeowner is applying for the monthly payment agreement, they will need to go to the tax claim office and fill out an application. Once the application has been filled out the homeowner will meet with the County Treasurer and Tax Claim Office Director. Monthly payment amount is based on the individuals gross monthly income and is open to for all to apply (case-bycase determination). Administering Agency Delaware County Tax Claim Bureau Contact Information Government Center, Ground Floor 201 W. Front Street Media, PA 19063 Phone: 610-891-4293 Fax: 610-891-4115 Additional Information www.co.delaware.pa.us/treasurer/taxclaim.html
Montgomery County
Special Program Features Monthly payment agreements are available to those who are unable to afford the standard quarterly payment. This feature is not income restricted and is open for all to apply. Costs Or Fees There is a $20 fee for setting up a standard installment payment plan. Additional fees are incurred to cover costs of delinquency notification and for documentation prior to the ultimate sale of the property. Procedure Call Xspand to apply for a standard installment payment plan. To apply for a hardship case, homeowners need to contact the Montgomery County Treasury Office and apply. Administering Agency Xspand (the firm contracted by Montgomery County to handle real estate tax collection) Contact Information For a standard installment payment plan Xspand Installment Payment Plan Advisor: 888-343-2143 Office hours Monday through Thursday: 9 a.m. to 7 p.m. Friday: 9 a.m. to 5 p.m. For a hardship case Montgomery County Treasurers Office One Montgomery Plaza, 6th Floor P.O. Box 311, Norristown, PA 19404-0268 Phone: 610-278-3066 Additional Information Xspand: www.xspand.com/taxpayers/faqs/montgomery.htm Montgomery County Tax Claim: www.taxclaim.montcopa.org/ taxclaim/site/default.asp?taxclaimNav=|
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Section IV:
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Deed-in-lieu
A deed-in-lieu of foreclosure is a process where the borrower voluntarily transfers ownership of the property to the servicer provided the title is free and clear. Just like a short sale, a DIL can benefit the lender and the borrower if it is done properly, but it is also a complex transaction. Although borrowers will not own the home anymore, they will be relieved of any difference between the amount owed on the mortgage and the fair market value or the foreclosure sale price (whichever is greater). In a foreclosure borrowers are responsible for paying this difference in addition to legal fees and late charges. Generally DIL are used when there is only one lien on the property. Although lenders tend to choose foreclosure over a short sale or DIL because of time and complexity, federal programs were created to incentivize lenders to find an alternative to foreclosure. For example, under the Making Home Affordable Foreclosure Alternative Program the short sale and DIL process and paperwork were simplified and streamlined. Additionally, lenders are being provided with financial incentives to proceed with a short sale or a DIL instead of a foreclosure.
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HEMAP Pennsylvanias Homeowners Emergency Mortgage Assistance Program: Conventional mortgages only. Applicants must have received an Act 91 notice. OHCD Philadelphia Office of Housing and Community Development: Must be 80% or below the median income. HUD United States Department of Housing and Urban Development: Can do conventional or FHA mortgages.
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HEMAP Pennsylvanias Homeowners Emergency Mortgage Assistance Program: Conventional mortgages only. Applicants must have received an Act 91 notice. OHCD Philadelphia Office of Housing and Community Development: Must be 80% or below the median income. HUD United States Department of Housing and Urban Development: Can do conventional or FHA mortgages.
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Samples of Notices
This section shows mock ups of five notices that a homeowner may receive by mail during the foreclosure process. While each notice may contain many additional pages, the following shows an example of the first page of each notice.
Act 91 Notice
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Complaint
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Important Notice
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Judgment
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