Foreclosure Prevention Resource Guide Summer - Fall 2010

Foreclosure Prevention
Resource Guide
Summer/Fall 2010 Edition
Prepared by: UAC Foreclosure Prevention Task Force
Visit us on the Web: www.uac.org/foreclosurehelp.htm
1207 Chestnut Street Philadelphia, PA 19107
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
1207 Chestnut Street 7th Floor Philadelphia, PA 19107
phone 215-851-0110 fax 215-851-0514 email [email protected]
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,
Sharmain Matlock-Turner President/CEO
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.
About the UAC Foreclosure Prevention Task Force

The UACs Foreclosure Prevention Task Force is helping to develop a system-wide strategy of combating the mortgage foreclosure crisis in Philadelphia and helping to prevent unnecessary foreclosures. The Task Force is made up of bankers, bank regulators, housing counselors, legal aid attorneys, community advocates and local government agency representatives. The Task Force was formed in September 2007 and presented recommendations and strategies to UACs Community and Economic Development (CED) Committee in April 2008. The Task Force presented strategies and recommendations in three areas: Education and Awareness, Affordable and Beneficial Mortgage/Financial Products, and Government and Mortgage Industry Policies and Regulations.
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
Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm
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
Making Home Affordable Hotlines Legal Assistance (income limits)
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
ext. 201 215-851-1738 215-686-3530 215-348-6124 610-334-6850 610-891-4296 610-278-3331
Other
Urban Affairs Coalition Philadelphia County Sheriffs Office Bucks County Sheriffs Office Chester County Sheriffs Office Delaware County Sheriffs Office Montgomery County Sheriffs Office
Additional Information Resources
Federal Reserve Bank of Philadelphia Virtual Foreclosure Resource Center
www.philadelphiafed.org/foreclosure (For consumer information, community resources, research and publications, policies and regulations and news.)
Section I:
What is mortgage foreclosure and how does it work?

Mortgage foreclosure is a complicated process that requires diligent action by the homeowner at every step. This section provides an overview of the entire process as well as detailed explanations of each step along the way. The information in this section may be useful for professionals that are helping homeowners save their homes or homeowners in foreclosure that want to learn more about the process to assert their rights.
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
I received the Important Notice letter

(See example on Page 50) (See example on Page 51)
I received the Praecipe Judgment
5 months
My house is scheduled for Sheriff s Sale
6 months
(See example on Page 52)
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
Sheriff s Sale is held & property is sold

This means you dont own the property any more.
9 months
I received the Complaint for Ejectment

This is a new lawsuit. Like above, you will get a letter titled Important Notice and another Judgment.
10 months
See Eviction Timeline by County for information on Sheriff s Sale schedules and move out procedures.
The Sheriff has given me a move-out date
The Foreclosure Process Explained

Step 1: I am behind on my mortgage payments
If you fall behind in your mortgage payments or your mortgage company bills you for additional charges you cannot pay or do not believe you owe and refuse to pay, you will receive any number of letters stating that if you do not pay, you may face foreclosure, lose your home and/or have negative credit information reported about you. Until you receive the official notice in Step 2, you are not really in foreclosure (although it may be treated that way by the mortgage company or credit agencies). The mortgage company cannot foreclose on your home while you have a pending HEMAP application. You MUST meet with an approved housing counseling agency within 33 days of the date on the notice to apply for HEMAP. NOTE: If you have an FHA loan you will not get an Act 91 notice, but you will get a notice telling you your rights. FHA loans are not eligible for HEMAP.
Step 3: I received a Complaint

If you do not cure your delinquency or meet with a housing counselor within 33 days, the mortgage company must file a legal document in the local Common Pleas Court, called a complaint, claiming that you are in default of the mortgage. Service of the mortgage foreclosure complaint. The Sheriffs office in your county must hand deliver a copy of the mortgage foreclosure complaint to an adult at the homeowners residence (unless the Court has permitted a different form of service, such as posting on your door or certified mail). Responding to the mortgage foreclosure complaint. You have 20 days from the date the Sheriff delivered the complaint to respond either by filing 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. Philadelphia Only: Conciliation Conference On April 16, 2008, the Philadelphia Court of Common Pleas created the Residential Mortgage Foreclosure Diversion Pilot Program to help homeowners save their homes. Foreclosures of owner-occupied homes filed after September 9, 2008, has a conciliation conference scheduled when the case is filed. Homeowners receive a notice stating when their court hearing is scheduled. Before appearing in court, homeowners must prepare a proposal to resolve the mortgage default and send it to the lawyer for the mortgage company. Homeowners can do so by scheduling an appointment with a certified housing counseling agency (see the Housing Counseling Agency Directory). Appointments can be scheduled by calling the Save Your Home Philly Hotline. At the conference, the mortgage company lawyer will be there, as well as a court-appointed mediator.
Step 2: I received a Notice of Intention to Foreclose

If you are less than 24 months behind on your mortgage, are behind less than $60,000 and do not have a federally insured mortgage (FHA), you must receive an Act 91 notice before your mortgage company can file a foreclosure case against you in court at the top it says Act 91 NOTICE TAKE ACTION TO SAVE YOUR HOME FROM FORECLOSURE. This notice may also be combined with a Notice of Intention to foreclose (for those whose original loan amounts were $217,873 or less), advising you of how much you are allegedly behind on payments or any other basis upon which the mortgage company claims you are in default and stating what you must do to reinstate your mortgage. If your original mortgage loan amount was $217,873 or less but you do not meet the criteria above for receiving an Act 91 Notice, you still must receive a Notice of Intention to Foreclose, advising you of how much you are allegedly behind on payments or any other basis upon which the mortgage company claims you are in default and stating what you must do to reinstate your mortgage. Before these notices can be sent to you, you must be at least three months in arrears (they can be sent on the 2nd day of the 3rd month). These notices usually come by both certified and first class mail. There must be a separate notice for each person who signed the mortgage. The notices give you 30 days to cure (get caught up on) the delinquency and, if you are eligible, to meet with a housing counselor to apply for the Homeowners Emergency Mortgage Assistance Payments (HEMAP) program of the Pennsylvania Housing Finance Agency. If you cure the delinquency or, if you are eligible for HEMAP, you meet with a housing counselor, no mortgage foreclosure action can be started in court (there is no such thing as mortgage foreclosure outside of court in Pennsylvania).
Step 4: I received the Important Notice letter

If you do not file a response to the mortgage foreclosure
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).
Step 5: I received a Judgment and my house is scheduled for Sheriff s Sale

If you still do not file a response to the mortgage foreclosure complaint, the mortgage company can take a default judgment against you. At the same time, the mortgage company will file a Writ of Execution and schedule a Sheriffs Sale of your home. The length of time varies from county to county (anywhere from 2 to 5 months) between entry of default judgment and the date of the Sheriffs Sale. The sheriff must deliver a notice of the sale to each person who signed the mortgage and post a big Sheriffs Sale sign on your door. NOTE: If your house sells at Sheriff s Sale, you no longer own it and there is nothing you can do to save your home (unless there was a technical defect in the foreclosure process, which is extremely rare). See County specific information.
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).
Step 6: Sheriffs Sale is held & property is sold

If you have not taken any action to prevent the Sheriffs Sale from taking place (such as having the judgment opened, reinstating the mortgage, are in the process of getting a HAMP loan modification or filing a bankruptcy petition) and if the mortgage company has met all the requirements for the Sheriffs Sale to proceed, the sale will take place in a public place, usually the local county courthouse. Once someone buys your home at the sale (often the mortgage company itself), you no longer own it. However, you do not have to leave your home at that time. Sometimes, the new owner may try to contact you. They may offer cash for keysmoney for you to promise to move out by an agreed upon date or offer to allow you to stay and pay rent. The new law does not require the new owner to do any of this. Accepting these offers is your decision. If you do not reach an agreement with the new owner, they will probably proceed to eject you.
Step 8: The Sheriff has given me a move-out date

If you still do not file a response to the ejectment complaint, the mortgage company or other buyer can take a default judgment against you. At the same time, the mortgage company or other buyer will file a Writ of Execution or a Writ of Possession. The Sheriff will deliver this notice to the house. The Sheriff will also schedule a time that you must be out by. If you remain beyond that time, a deputy sheriff can go out to your home and forcibly evict you. The length of time varies from county to county depending upon the workload of the Sheriffs office, but the Sheriff s office is not allowed to take longer than 90 days to evict you once the writ is filed. In some counties, a representative of the Sheriffs office will notify you a few days before coming out to evict you, but this is not required. You still have a right to keep all of your personal possessions from the home.
Step 7: I received a Complaint for Ejectment

The new owner of the house cannot remove you from the
How can I prevent the Sheriffs Sale?

READ THIS FIRST
Below is a list of suggestions on trying to work out a problem with your mortgage. A more comprehensive discussion of these programs is in the Products Directory section. Not every option is right for everyone. You also need to remember that even while you are trying to find a solution, the mortgage company may be moving forward for the foreclosure process in court. If you have court papers or a Sheriffs Sale scheduled, you cannot ignore those deadlines. If you have a Sheriffs Sale scheduled, the mortgage company can voluntarily postpone or stop the Sheriffs Sale, but this is rare. If the mortgage company says it will do this, get it in writing and then confirm with the Sheriff that the sale is postponed. mortgage company cannot file a foreclosure lawsuit. If the lawsuit was already filed before you applied for HAMP, the lender still has to consider you for the HAMP modification and they cannot sell your house at Sheriffs Sale until your application is reviewed. BE CAREFUL Just because you are working with the lender doesnt mean you are in the HAMP process. If you have a Sheriffs Sale scheduled you should ALWAYS verify with the lender and the Sheriff to confirm that the sale is stopped or postponed (also called stayed). Many lenders will talk to people about resolving the problem while at the same time the house goes to Sheriffs Sale. Dont let this happen to you!
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 Strike the Judgment

If judgment is taken against you, but something was wrong in the way the judgment was done, you can file a Petition to Strike the Judgment. The errors that allow a judgment to be stricken include improper service, lack of jurisdiction and other procedural errors. If granted, then it is as if the judgment were never issued. You can then respond to the complaint and fight the foreclosure. Please note: filing this petition does not stop the Sheriffs Sale. Only when the court grants the petition is the Sheriffs Sale stopped. It can take several months for a court to grant a petition. If you want to stop the Sheriffs Sale while the court considers the petition, you need to file a separate petition to stay the Sheriffs Sale (see below).
Right to Payoff in Full

Up until one hour before the Sheriffs Sale, you can satisfy the mortgage or judgment by paying the complete amount owed on the mortgage. If there is a judgment, you must pay the amount set by the court in the judgment, plus interest. If there is no judgment, you have to get a payoff figure from the mortgage company or its lawyers. There are several ways to get money to reinstate such as refinancing your house into a new mortgage. The state, federal government, nonprofit organizations and even some private banks have programs to refinance homeowners into more affordable loans.
Petition to Open Judgment

If judgment is taken against you and you have a good defense, you can file a Petition to Open Judgment within 10 days and have the default judgment set aside. If granted, you can then respond to the complaint and fight the foreclosure. Please note: filing this petition does not stop the Sheriffs Sale. Only when the court grants the petition is the Sheriffs Sale stopped. It can take several months for a court to grant a petition. If you want to stop the Sheriffs Sale while the court considers the petition, you need to file a separate petition to stay the Sheriffs Sale (see below).
Working with the Lender

A new government program, called Home Affordable Modification Program (HAMP), allows some people to change the terms of their mortgage (called modification) to resolve a delinquency. Many lenders (but not all) are participating in this program. If you have a pending HAMP application, or if you have been accepted for a HAMP loan modification, your
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.
What about bankruptcy?

Up until one hour before the Sheriffs Sale, you can stay the sale by filing a bankruptcy in the federal bankruptcy court. If you file during the hour immediately before the sale, it will stop the sale, but the mortgage company can insist that you pay the entire mortgage off during the bankruptcy to avoid having another Sheriffs Sale scheduled. But beware! Filing the bankruptcy petition does not solve the problem completely. Bankruptcy law requires everything stop (including Sheriffs Sale), so that the bankruptcy court can figure out how to handle your finances. If you file a Chapter 7 bankruptcy, you either have to immediately bring the mortgage fully current or surrender the house. If you file a Chapter 13 bankruptcy, you can make payments over 35 years to bring the house current. During those 35 years, you are still in the bankruptcy. Before filing bankruptcy, you must get credit counseling from a bankruptcy court approved counselor. Visit the official list at www.usdoj.gov/ust/eo/bapcpa/ccde/ cc_approved.htm. If you do not have the credit counseling certificate when you file bankruptcy, there is a chance that the bankruptcy will be kicked out. Get a lawyer to help you. Filing a bankruptcy yourself is a lot like doing your own taxes, but without instructions. There are lots of forms, it involves your finances, there are many rules that are not easily understood and mistakes can have big consequences. Some people can handle it on their own, but many feel in over their heads.
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County Office Contact Information

Bucks County
Length of time between filing writ of execution and date of Sheriffs Sale: Approximately three months (see schedule available from website: www.buckscounty.org/government/rowofficers/ sheriff/2010SheriffSaleDates.pdf; sales take place on the 2nd Friday of each month, with the exception of the second Fridays that fall on a day the courthouse is closed and are held in the James Lorah Auditorium, 132 North Main Street, Doylestown, PA 18901 (corner of Broad and Main Streets) directly across from the courthouse. 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: 30 days minimum by Sheriffs Office policy (unless there are extenuating circumstances that require less notice); a particular date for the eviction is provided to the former owner and/or occupants of the property; a $100 deposit must be posted by the mortgage companys law firm toward the costs of a locksmith, moving and storage of any personal possessions still at the premises. 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.buckscounty.org/government/rowOfficers/Sheriff/ SheriffRealEstateSalesListings.aspx Contact information: Sheriffs Office Edward J. Donnelly, Sheriff Bucks County Court House 55 E. Court Street, 1st Floor Doylestown, PA 18901 Main Number: 215-348-6124 Real Estate: 215-348-6132 Civil Rates: 215-348-6130 Civil Rates (out of County): 215-348-6122 Personal Property: 215-348-6129
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:
How can I prevent mortgage foreclosure?

In response to the national foreclosure crisis, there are many programs available to homeowners to help them stay in their homes. This section contains information about proactive actions such as housing counseling, programs for people who are struggling to pay their mortgage but are not in foreclosure and people who have received a foreclosure notice but have not yet lost their homes.
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Housing Counseling and Preventing Foreclosure

No matter what stage of homeownership youre in, a housing counselor can help you. Whether you are purchasing your first home, trying to navigate the world of homeownership or are worried about foreclosure, attending a housing counseling session can help you sort through the options. Housing counselors are trained professionals who are knowledgeable about the various aspects of the home buying and foreclosure process.
What is the benefit of seeing a housing counselor?

Housing counseling sessions are one-on-one. You receive specialized advice and assistance that is unique to your situation. In the counseling sessions, a housing counselor will evaluate your finances and let you know if the time is right to purchase a home, refinance your current mortgage for a lower rate or if you should strengthen you financial situation before doing anything else. Counselors will also help you explore what options you may have to prevent fore-closure or to restructure or refinance a mortgage you feel has unfair terms or you are having trouble paying.
What do housing counselors do?

If you are planning to purchase your first home, counselors help you prepare for homeownership by providing information, education and advice about the process. A session with a housing counselor may include establishing a household budget, credit and debt management, determining affordability, shopping for a home, making an offer on a home, choosing a lender, identifying loan products, closing a purchase transaction, identifying grants and adjusting to life as a new homeowner. Even if you have owned a home for a few years, but still feel in the dark about what to do or are experiencing difficulties with your mortgage, housing counselors can assist you.
How much does it cost?

Approved nonprofit housing counseling agencies are free. (See the directory of housing counseling agencies.) The only fee you may have to pay is for your credit report to obtain your credit score. You are entitled to a free credit report up to three times per year, but you have to pay for your credit score. Avoid for-profit companies that charge for their services, especially those who solicit you through the mail. Keep the following tips in mind when you are seeking help: A reputable counselor will not guarantee to stop the foreclosure process, no matter what your circumstances. Working with a legitimate counselor can certainly increase your chances of keeping your homebut be wary of people who promise a sure thing. Get the details of your transaction, along with any promises, in writing first. Do not let a counselor pressure you to sign paperwork you have not had a chance to read through carefully or that you do not understand. Do not sign any blank forms or let the counselor fill out forms for you. Be sure to talk with an attorney before signing any contract, forbearance agreement, loan modification or anything that transfers the title of your home to another party. See the Housing Counseling Agency Directory to find a counselor near you. Some housing counseling agencies are experiencing an extraordinary number of requests for service and may not be able to schedule an appointment right away. If you have a time limit in which to take action to save your home, try more than one counseling agency to make sure you meet all applicable deadlines.
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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Mortgage Foreclosure Rescue and Loan Modification Scams

As if the stress and fear of losing a home through foreclosure werent enough, now homeowners must be on alert about scam artists trying to take money that could be used to save the home. There are people and companies out there who prey on vulnerable homeowners. They make empty promises to work things out on behalf of the homeowner. Often, the homeowner is left with a foreclosure in their hands and the person who was supposed to work things out took their money and did little or nothing to prevent the foreclosure. It is important to bring the attention of homeowners to scams so they can protect themselves and increase the chances of staying in their homes. Although foreclosure rescue scams are on the rise, they arent always easy to spot. Here are six red flags1 to indicate that you may be dealing with a loan modification scammer: 1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure. 2. A company/person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise that they will try their very best to help you. 3. A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender. 4. A company pressures you to sign over the deed to your home or sign any paperwork that you havent had a chance to read, and you dont fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it. 5. A company claims to offer government-approved or official government loan modifications. They may be scam artists posing as legitimate organizations approved by, or affiliated with, the government. Contact your mortgage lender first. Your lender can tell you whether you qualify for any government programs to prevent foreclo1
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.
Common Loan Modification Scams

Phony Counseling or Foreclosure Rescue Scams Scam artists pose as a counselor and tell you they can negotiate a deal with your lender to save your house but only if you pay him a fee first. They may even tell you not to contact your lender, lawyer or housing counselor and that hell handle all details. He may even insist that you make all mortgage payments directly to him while he negotiates with the lender. Once you pay the fee, or a few mortgage payments, the scammer disappears with your money. Fake Government Modification Programs Some scammers may claim to be affiliated with, or approved by, the government, or they may ask you to pay high, up-front fees to qualify for government mortgage modification programs. The scammers company name and Web site may sound like a real government agency. You may also see terms like federal, TARP or other words related to official U.S. government programs. Your lender will be able to tell you if you qualify for any government programs to prevent foreclosure. You do not have to pay to benefit from these programs. Bait-and-Switch The scam artist convinces you to sign documents for a new loan modification that will make your existing mortgage current. This is a trick. You actually just signed documents that surrender the title of your house to the scam artist in exchange for a rescue loan. Rent-to-Own or Leaseback Scheme A scammer urges you to surrender the title of your home as part of a deal that will let you stay in your home as a renter and then buy it back in a few years. He may tell you that surrendering the title will permit a borrower with a better credit rating to get new financing and keep you from losing your home. However, the scammer may have
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.
Reporting a Scam and Getting Help

If you are the victim of a scam or believe you are being scammed, it is important to seek help and report the people taking your money. Scammers are committing a crime and it is vital to protect your rights and your community. To report a scam, please do any or all of the following: 1. Call the Homeowners Hope Hotline: 1-888-995-HOPE (4673) Assistance is available in 20 languages upon request. 2. File a complaint online through the Lawyers Committee for Civil Rights Under the Law. Submit your online complaint form in English. 3. Call the Federal Trade Commission (FTC) at 877-FTC-HELP (1-877-382-4357). 4. You can contact the Pennsylvania state Attorney General, Tom Corbett by calling the toll free Consumer Protection hotline at 1-800-441-2555. If you are in foreclosure and need assistance negotiating with your mortgage company, seek help from a nonprofit housing counseling agency (see the Housing Counseling Agency Directory).
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Im not in foreclosure, but struggling to make my mortgage payments

The products and programs listed in this section are resources that may be helpful for people not yet in foreclosure, but are experiencing a difficult time making the monthly mortgage payment. Descriptions of the products and services contain the vital information in a simplified readable format.
FHA Rate and Term Refinances

Purpose: Refinancing of existing FHA or non-FHA mortgages for homeowners current on their existing mortgage. Refinancing option Fixed rate or adjustable rate mortgage Maximum term30 Years Maximum loan-to-value ratio (LTV) on FHA 1st mortgage 97.75% Interest rates decided by lender based on current market rates 14 unit properties, including condominiums and manufactured housing permanently affixed to foundation Mandatory principle write-down by lender at a minimum of 10% of unpaid balance of original loan. Combined mortgage debt must be written down to a maximum of 115% of current value of home. Total monthly mortgage payment, including the second mortgage, will not exceed 31% of borrowers income. No restrictions on new or existing subordinate financing. No restriction on combined LTV. Up front mortgage insurance premium (MIP): 2.25% Monthly MIP: 0.55% Maximum Amount $420,000 not including the upfront MIP, if financed into the new loan). This amount is based on a 1 unit residence. No restrictions on new or existing subordinate financing. No restriction on Combined LTV. Borrower must be owner-occupant. A sustained history of employment. Sufficient and fully documented income. Borrower must be current on existing mortgage. Minimum FICO score of at least 500. Must qualify under standard FHA underwriting guidelines. Geographic Area Served: Costs Or Fees: All 50 states Customary and reasonable closing costs and prepaid expenses. Closing costs and expenses may be included in new mortgage amount. Federal Housing Administration Contact an FHA-approved lender. For a list of FHA-approved lenders, visit www.fha.gov or call 1-800 CALL FHA (1-800-225-5342). www.fha.gov
Program: Program Features:
Subordinate Financing Eligibility Requirements:
Administering Agency: Procedures: Contact Information: For More Information:
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HOPE for Homeowners (H4H)

Purpose: Refinancing of existing FHA or non-FHA mortgages for homeowners current or delinquent on their existing mortgage. Existing mortgage must have been originated on or before January 1, 2008. Refinancing option Fixed rate mortgage. Minimum 30 year term; maximum 40 year term. Maximum Loan-To-Value Ratio (LTV) on FHA 1st mortgage 90%. Interest rates decided by lender and based on current market rates. 1 unit properties, including condominiums, cooperative units and manufactured housing permanently affixed to foundation. Maximum Amount Subordinate Financing Eligibility Requirements: $550,440 (amount is based on a 1 unit residence) Not permitted. Borrower must be owner-occupant. Non-occupant co-borrowers not permitted. Satisfactory credit history. A sustained history of employment. Sufficient income to make the mortgage payments. Existing mortgage debt-to-income ratio greater than 31%: As of March 1, 2008 for fixed rate loans and ARMs with no resets after March 1, 2008 or following any ARM resets that occurred or are scheduled to occur after March 1, 2008. Borrower must have made at least six (6) payments on the existing mortgage. Monthly payment on new mortgage must be less than payment(s) on existing mortgage(s). Borrowers must share initial equity and appreciation with FHA at the time loan is paid off. Existing lien holders must waive prepayment penalties and late charges, as well as remove all liens against the property. Existing lien holders are required to accept the proceeds of the H4H mortgage as payment in full. Geographic Area Served: Costs Or Fees: All 50 states Customary and reasonable closing costs and prepaid expenses. Closing costs and expenses may be included in new mortgage amount. Up Front Premium (may be financed in new loan): 3.00% of loan amount Annual Premium (paid monthly): 1.50% of loan balance. Federal Housing Administration Contact an FHA-approved lender. Contact a FHA-approved lender (for a list of lenders visit www.fha.gov) or call 1-800 CALL FHA (1-800-225-5342). www.fha.gov
Mortgage Insurance:
Administering Agency: Procedures: Contact Information:
For More Information:
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Homeowners Equity Recovery Opportunity Loan Program (HERO)

Purpose: For Pennsylvanians who are not able to afford their current mortgage payments. This program is for borrowers not eligible for PHFAs REAL program (REfinance to an Affordable Loan) or another mortgage refinance product available in the general market due to credit issues or owing more than your homes current appraised value. Refinancing option 100 percent financing but instead of refinancing your current mortgage into a new loan PHFA purchases your loan directly from your current lender and then sets you up on an affordable repayment agreement. If you owe more than the homes current value, PHFA may be able to negotiate with the current lender to reduce the amount owed on the loan. 30 year fixed rate. May be used to pay off current mortgage debt, closing costs, prepayment penalties and delinquent property taxes. Applicants must attend financial counseling at a PHFA approved agency. Maximum Amount Eligibility Requirements: Up to 100% of the homes appraised value. The combined gross annual income of all borrowers may not exceed $120,000. Certain exceptions may apply. You have made an effort to meet your financial obligations to the best of your ability. You have sufficient and stable income to support timely repayment of the HERO loan in regular, monthly installments. (All borrowers must agree to make monthly mortgage payments by automatic payment directly from your bank account.) You own the mortgaged property and reside in it as your permanent residence. If you have stopped making your mortgage payments, you can account for your cash flow by showing how you have escrowed, saved or redirected those funds. The HERO loan must be in first lien position. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: Contact Information: For More Information: State of Pennsylvania 7.95% APR with no points and no origination fee. Pennsylvania Housing Finance Agency Get an application from PHFA. 1.800.822.1174 www.phfa.org/consumers/homeowners/real.aspx
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Home Affordable Refinance Program (HARP)

Purpose: To help borrowers current on their mortgage payments, whose loans are owned, guaranteed and/or securitized by Fannie Mae and Freddie Mac, refinance into more affordable loans that will remain affordable by reducing the interest rate and/or converting adjustable rate mortgages into lower cost fixed rate loans. Refinancing option Interest rates based on market rates at the time of the refinance. No prepayment penalties or balloon payments. Some loans owned or securitized by Fannie Mae may be eligible to finance all closing costs and obtain a small amount of cash (up to $250) if there is sufficient equity. Loans owned or securitized by Freddie Mac may be able to finance transaction costs (the lesser of 4% of the current unpaid principle balance of the loan being refinanced or $5,000). Borrowers may be able to obtain up to $250 cash. Maximum Amount Eligibility Requirements: Up to 125% of the propertys current value. The property is a 14 residential unit and owner-occupied. The loan is the first lien and owned, guaranteed and/or securitized by Fannie Mae or Freddie Mac. At the time of application, the applicant is current on mortgage payments (no more than 30-days late in the last 12 months or, have never missed a payment if the applicant had the loan for less than 12 months). The first mortgage does not exceed 125% of the current market value of the property. Sufficient income to support the new mortgage payments. The refinance improves the long term affordability or stability of the loan. The program expires on June 10, 2011. Your refinance transaction must be closed and funded on or before that date. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: All 50 states Lender points and/or fees may apply, but may be included in the refinanced loan. United States Treasury Department together with mortgage servicers and lenders. Call your mortgage lender and ask for a HARP application. Borrowers whose loans are owned or securitized by Fannie Mae or Freddie Mac may also apply through any approved lender. Call your mortgage servicer or lender. The phone number is located on your monthly mortgage statement or you can visit https://www.hopenow.com/mortgage-directory.php for assistance. To determine if your mortgage is owned, guaranteed and/or securitized by Fannie Mae or Freddie Mac, please call or visit: For Fannie Mae: 1-800-7FANNIE (8:00 a.m. to 8:00 p.m. EST) or visit www.fanniemae.com/loanlookup. Freddie Mac: 1-800-FREDDIE (8:00 a.m. to 8:00 p.m. EST) or visit www.freddiemac.com/mymortgage. This information is not a guarantee of eligibility for the refinance program. It will help your lender and speed up the application process if some information and documents are available as before you call, such as monthly gross (before tax) income of all the borrowers on the loan, recent pay stubs, most recent income tax return, any information about a second mortgage, account balances and minimum monthly payments due on all credit cards and account balances and monthly payments on other debts such as student loans and car loans.
Contact Information:
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REfinance to an Affordable Loan Program (REAL)

Purpose: Program: Program Features: Maximum Amount Eligibility Requirements: For homeowners who would not typically qualify for typical refinance options due to their credit history Refinancing option 30-year fixed rates, 100 percent financing with flexible credit underwriting Up to 100% financing The combined gross annual income of all borrowers may not exceed $120,000. Certain exceptions may apply. You are no more than 59 days past due on your existing mortgage. You must have a credit score of at least 620 OR meet all of the following conditions: Your mortgage payment adjusted in the last 12 months to a higher interest rate or a fully amortized payment and you have made no more than two, 30-day late payments since the adjustment. Your mortgage payment history 12 months prior to the adjustment must show no history of late payments. Your credit history of debt shows no more than three, 30-day late payments 12 months prior to mortgage adjustment. You may borrow up to 100 percent of your homes value based upon a current appraisal (or 95 % for a credit score below 620). Your monthly total debt costs (credit cards, car loans, installment loans, REAL mortgage payment, student loans, etc.) may not be more than 50 percent of your total gross monthly income (or 45% for a credit score below 620). Geographic Area Served: Costs Or Fees: State of Pennsylvania No Fee: Rate 7.625% APR Fee: 1% + $300, Rate 7.375% APR Pennsylvania Housing Finance Agency Call approved lender, who will take your application, process and close the loan. For the names of participating lenders call 1.800.822.1174 www.phfa.org/consumers/homeowners/real.aspx
Administering Agency: Procedures: Contact Information: For More Information:
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PHIL-Plus and Mini-PHIL Home Improvement Loan

Purpose: Helps homeowners with less-than-perfect credit. For small repairs, energy conservation improvements or larger renovations. Up to half of the loan may be used to pay off existing debts. Repair Loan / Refinance Option Terms up to 20 years for PHIL-Plus, 10 years for Mini-PHIL. Most banks require no equity in property required. No bank fees. Maximum Amount Eligibility Requirements: $25,000 for PHIL-Plus, $10,000 for Mini-PHIL Home must be owner-occupied. Home must be located in the City of Philadelphia. Income guidelines applysee housing counselor for more information. Geographic Area Served: Administering Agency: Procedures: City of Philadelphia Urban Affairs Coalition Call your neighborhood housing counseling agency. To see a complete list of participating agencies, visit www.formyphillyhome.org Shante Antrom-Gowans Urban Affairs Coalition Tel.: 215-851-1740 Fax: 215-564-9912 www.formyphillyhome.org
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Emergency Food and Shelter Program (EFSP)

Purpose: Program: Product or Service: Grants to local organizations to help homeowners cover rent, mortgage or utilities expenses. Grant The United Way of SEPA receives an allocation for the county and organizes a local board to select recipients. FEMA disburses the grants directly to the individual agencies. One months Rent or Mortgage Assistance GrantFor principal and interest only. Grants also allow for first months rent payment. Grant Recipients for Rent Mortgage Utilities Assistance: Catholic Social Services, Congreso de Latinos Unidos, Inc., Diversified Community Services, Face to Face Inc., Pathways PA, Philadelphia Council for Community Advancement, Philadelphia Veterans Multi-Service & Education Center, Inc., The Partnership CDC, Tenant Union Representative Network, United Communities of Southeast Philadelphia and Utility Services Emergency Fund. For Food and Shelter Grant Recipients, contact United Way at 215-665-2547. Total Amount Eligibility Requirements: City of Philadelphia received $275,000 in 2009 Eligibility for assistance is limited to households with income at or below 150% of Federal Poverty Guidelines. City of Philadelphia No Fee FEMA Call an agency listed below for assistance with FEMA EFSP Grants Agency Phone
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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Preserving Homeownership And Savings Education Strategies (PHASES) Grant

Purpose: Money Management International (MMI) has created a program through a $1 million grant from HSBC. The PHASES grants can assist qualified homeowners in participating states who are experiencing temporary financial distress and who are past due on one or two mortgage payments. Grant $7,500 Must be located in the state of Pennsylvania. No more than 2 months behind on mortgage payments. Must be experiencing temporary financial distress. No credit score requirement. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: AZ, CA, CT, FL, IL, MD, MA, MI, NV, NJ, OH, PA, TX and VA Free counseling session. Money Management International Call the PHASES hotline to undergo an eligibility screening with a MMI housing counselor. For homeowners that qualify for the grant, an appointment for a counseling session will be made during the screening. If there is an MMI office in the area, the counseling session will be held at an office. NO WALK-INS ARE ACCEPTED, THE HOTLINE MUST BE CALLED FIRST. In the Delaware Valley, MMI has office locations in Easton, Pottstown, Quakertown, Wyomissing and Whitehall. If there are no MMI offices in the area, counseling sessions are done via the Web (applicant is guided by an MMI counselor). The counseling session consists of completing an online education program. The process includes surveys, a pre-test, and a post-test and takes approximately one hour to complete. The counseling session does not need to be completed in one sitting. User ID and password is given. Upon completing the online education program, an application must be filled out, then the homeowner is denied or approved. Contact Information: For More Information: 1-888-589-6959, staffed 24 hours a day Call 1-888-589-6959 or visit www.mmiphases.com
Program: Maximum Amount Eligibility Requirements:
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Ive received a notice and am in foreclosure

At a federal and local level, programs were created or enhanced to help the growing number of people who were threatened with the loss of their home through foreclosure. The programs in this section, such as mortgage modifications or court intervention, may be useful for individuals further along in the foreclosure process.
Foreclosure Prevention Remediation Loan

Purpose: Program: Program Features: Loan for payment of legal and Sheriffs fees only to prevent foreclosure. Loan to pay fees associated with foreclosure to reduce out of pocket expenses for the homeowner. Maximum amortization period of 120 months. Maximum deferral of 18 months. Interest Rate: 7.20%. For homeowners determined to not be in a position to re-pay another loan, PNHS may defer principal and interest repayments for a period up to five years (subject to justification and PNHS Loan Committee review and approval). Funds are released to the lender for disbursement. Maximum Amount Eligibility Requirements: $5,000 Owner-occupied primary residence. Income at or below 115% of median adjusted for family size. Maximum Loan To Value: 80%. Single family unit, 1-4 unit attached/detached dwelling, condo and PUDs. Qualifying ratios 33%/45%. Recent credit file report is required and cannot be in bankruptcy or bankruptcy application. Homeowner must have a satisfactory agreement with the lender based on established HUD Loss Mitigation tools and strategies, work outs with lenders including loan modifications and repayment plans. Escrows for taxes and insurance have to be established and/or brought current. All delinquent taxes and/or water & sewer rents have to be current or under current re-payment agreements. Geographic Area Served: Costs or Fees: Administering Agency: Procedures: City of Philadelphia $150 application fee (covers cost of loan processing, credit report and other fees) Philadelphia Neighborhood Housing Services, Inc. (PNHS) Call for appointment Full or alternate documentation Contact Information: Denise Jefferson-Bailey or Henry Moore Tel.: 215-476-4205 Fax: 215-476-4271 www.phillynhs.org/loans.htm
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Homeowners Emergency Mortgage Assistance Program (HEMAP)

Purpose: Program: Program Features: Assures steady mortgage payments for families in danger of foreclosing their homes. Emergency/Rescue Loan Approximately 5% APR Two types of assistance are available depending on the income and financial situation: (1) Continuing mortgage assistance loans. Loan recipients of a continuing loan must begin repayment immediately following termination of continuing loan disbursements. (2) Noncontinuing mortgage assistance loans. Loan recipients of a noncontinuing loan must begin repayment immediately following loan closing. All HEMAP loan recipients are required to pay up to 35 percent of their net monthly income, as determined by HEMAP, towards their total housing expense. Repayment is set based on income, but must be at least $25.00 per month per mortgage assisted. Maximum Amount All HEMAP loans, continuing or noncontinuing, are limited to a maximum of 36 months from the date of the mortgage delinquency or to a maximum of $60,000.00, whichever comes first. At least 60 days delinquent on their mortgage and have received an Act 91 Notice from their lender. One or twofamily residence; a home used primarily for business purposes is not eligible. Property must be owner occupied and located in the state of Pennsylvania. FHA Title II loans are not eligible. Favorable mortgage credit history prior to the delinquency during the previous five years. The homeowner must be suffering financial hardship due to circumstances beyond their control. The homeowner must have a reasonable prospect of resuming full mortgage payments within 36 months and paying the mortgage in full by maturity. PHFA/HEMAP must have at least a 3rd lien position. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: State of Pennsylvania No cost to homeowner. Pennsylvania Housing Finance Agency An applicant must meet with an approved counseling agency for a face-to-face meeting within 33 days from the date of the Act 91 Notice in order to begin the application process. Within 30 days of the meeting, the counselor must submit the application and supporting documentation to HEMAP. The applicant must also prepare a Letter of Circumstance explaining the exact reason their mortgage is delinquent and include verification. Application process can take up to four months to complete. While applications are processed, foreclosure actions cease, as long as the procedural time limits are met. Contact Information: For More Information: Local HUD approved agency. See the Housing Counseling Agency Directory. General Information: 1-800-342-2397 or visit www.phfa.org/consumers/homeowners/ hemap.aspx
Eligibility Requirements:
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Home Affordable Modification Program (HAMP)

Purpose: To help borrowers who are struggling to keep their loans current or who are behind on their mortgage payments, regardless of who owns or guarantees the loan. Loan modification with financial incentives for borrowers that make timely payments during the modification period. Lender cannot start foreclosure or sell house while application is pending or trial period is in effect. Modification of interest rate, term and/or principal balance to make mortgage payments (PITI) 31% of household income. 90-day trial period; if trial period payments are made on time, then permanent modification is sent for homeowner to sign. Interest rate is fixed for first 5 years; starting year 6 of the agreement, interest rate increases 1% point each year until it reaches market rate; once at market rate, interest remains fixed for the life of the loan. Participating servicers must accept modification applications from all eligible borrowers. Lender participation is mandatory if the loan is owned or guaranteed by FHA, VA, Fannie Mae or Freddie Mac. Relocation assistance payments to homeowners receiving a foreclosure alternative. Borrowers can enter into a loan modification without waiving other legal challenges to the underlying mortgage. No lump sum or loan modification fees. Maximum Amount Eligibility Requirements: $729,750 in unpaid principal balance for one unit properties (higher for 24 units) The property is a 14 residential unit and owner-occupied as their primary residence. The loan is owned, guaranteed and/or securitized by FHA, VA, Fannie Mae or Freddie Mac or the servicer participates in the program. The first mortgage loan must have been originated on or before January 1, 2009 . Mortgage payment is unaffordable due to a financial hardship that can be documented. Monthly mortgage payment (PITI) is greater than 31% of the gross monthly income. Borrowers in foreclosure proceedings are not eliminated. Unemployment compensation is not considered household income. Borrowers in bankruptcy may still participate, at servicers discretion. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: All 50 states. None United States Treasury Department together with mortgage servicers and lenders. Written application MUST be submitted in writing to your mortgage servicer or lender. Visit www.makinghomeaffordable.gov to fill out a loan modification request application or use the application in this publication and send it to your servicer when it is complete (must submit all supporting documentation before trial period will be approved). For free assistance with the application, call a HUD-approved housing counseling agency. Housing counselors will assist you with completing and submitting the application to your mortgage servicer or lender.
Program:
Program Features:
Additional information on next page.
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Home Affordable Modification Program (HAMP)

Contact Information: To fill out an application, please visit www.makinghomeaffordable.gov or use the application in this publication. If you do not have access to a computer to access the application, contact a HUD-approved agency in the Housing Counseling Agency Directory or call 1-888-995-HOPE (4673) to be connected to an agency. Call your mortgage servicer or lender if you have any questions about your submitted application. A complete list of participating loan servicers can be found at http://www.makinghomeaffordable.gov/ contact_servicer.html. If your mortgage is owned, guaranteed and/or securitized by Fannie Mae or Freddie Mac, please call or visit: For Fannie Mae: 1-800-7FANNIE or visit www.fanniemae.com/loanlookup. Freddie Mac: 1-800-FREDDIE or visit www.freddiemac.com/mymortgage. This information is not a guarantee of eligibility for the modification program. For More Information: www.makinghomeaffordable.gov
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Second Lien Modification Program

Purpose: Create a sustainable and affordable mortgage payment for homeowners receiving a modification on their first mortgage under the Home Affordable Modification Program by modifying the second lien. Loan modification Reduce the interest rate to 1 percent (for amortizing loans) or 2 percent (for interest only loans). Extend the term of the unpaid principal balance of the modified second mortgage to match the term of the modified first mortgage. Forbear principal in the same proportion as any principal forbearance on the first lien with the option of extinguishing principal under the Extinguishment Schedule. After five years, the interest rate on the second mortgage will step up to the current interest rate on the modified first mortgage. Borrowers can receive success payments of up to $250 per year for as many as five years to pay down principal on the first mortgage and help build the borrowers equity in the home. Maximum Amount No maximum, but the second lien must have a minimum unpaid principal balance greater than or equal to $5,000 at the initial consideration for the modification. Second liens must correspond with the first liens that have been modified under HAMP. Second liens must have originated on or before January 1, 2009. Mortgage liens that would be in second lien position for a tax lien, a mechanics lien or other non-mortgage related lien that has priority are eligible. Borrowers may be accepted into the program if a fully executed modification agreement or trial period plan is in the servicers possession on December 31, 2012. Second liens on which no interest is charged and no payments are due until the first lien is paid in full are ineligible. Mortgage loans that are subordinate to a second lien are ineligible. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: All 50 states Lender points and/or fees may apply. United States Treasury Department together with mortgage servicers and lenders. First determine if you are eligible for the Home Affordable Modification Program (HAMP). Upon successful modification of the first lien under HAMP, contact the second lien servicer to propose a modification. The second modification offer may be prepared during the HAMP trial period or on or after the date the HAMP modification becomes effective. The modification of the second lien may not become effective unless and until the modification of the first lien becomes effective under HAMP. Contact Information: If you are approved for a modification of the first mortgage, by HAMP, you will need to contact your second lien holder to begin the process of modification. Begin by visiting https://www.hopenow.com /mortgage-directory.php to look up the contact information of your mortgage servicer. www.financialstability.gov/
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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
Administering Agency: Procedures: Contact Information:
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City of Philadelphias Residential Mortgage Foreclosure Diversion Program

Purpose: Program: To help homeowners save their homes through early court intervention. Homeowners attend their scheduled Conciliation Conference to attempt to work out affordable mortgage workout plan in order to avert foreclosure. If a new foreclosure Compliant is filed and the home is owner occupied then the court will schedule a Conciliation Conference and send the conference appointment date and time to the homeowner. If the homeowner is being foreclosed on and has not received a notice for a Conciliation Conference, they can file a request with the prothonarys office for a conference hearing as long as the property is owner-occupied. Homeowners have the opportunity to save their homes by attending their Conciliation Conference. Before appearing in court, the homeowner must meet with an OHCD approved housing counseling agency to prepare and submit a proposal to resolve the mortgage default and send it to the mortgage company and the lawyer representing the mortgage company. A housing counselor will work with homeowner to determine if a loan work-out is possible with the mortgage company. Free legal representation may be available for those that qualify. Eligibility Requirements: Property must be located in the City and County of Philadelphia. Property must be 14 residential units, condominium unit or a residential co-op unit. Homeowner must reside in property. Mortgage foreclosure complaint against the property must have been filed. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: Philadelphia County No cost. City of Philadelphia Homeowners will receive a notice of their Conciliation Conference date along with the Complaint. Homeowner should call the Save Your Home Philly Hotline first. They will be scheduled for an appointment with a housing counselor or an attorney (see below). Homeowners who did not receive a conciliation hearing appointment can request one by filing Defendants Certification of Premises As Residential owner-occupied and Request for Conciliation Conference form with the prothonarys office no later than 10 days before the date of the Sheriff Sale. Contact Information: For More Information: Save Your Home Philly Hotline 215-334-4663 More information and forms are available at: courts.phila.gov
Program Features:
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Bucks County Diversion Program

Purpose: Program: To help homeowners save their homes through court intervention Homeowners attend court to attempt to work out affordable mortgage workout plan in order to avert foreclosure. Before appearing in court, homeowners must meet with a HUD approved housing counseling agency to prepare and submit a proposal to resolve the mortgage default and send it to lender and the lawyer representing the mortgage company. Housing counselor will work with homeowner to determine if a loan work-out is possible with the lender. Free legal representation may be available for those that qualify. No income restrictions to go through the program. Eligibility Requirements: Property must be located in Bucks County. Property must be 1-4 residential units, condominium unit, or a residential co-op unit. Homeowner must reside in property. Mortgage foreclosure complaint against the property must have been filed. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: Bucks County No cost. Bucks County Court of Common Pleas Homeowner will receive an Urgent Notice to call the Save Your Home Hotline. This call must be made within 10 days of receiving the notice in order to receive help. They will be put in touch with a Bucks County Housing Counselor to work out arrangements with the mortgage company. This service is FREE. The Conciliation Conference is not mandated by the court, it is optional. It is vital homeowners call the hotline to schedule a Conciliation Conference and meet with a housing counselor. Contact Information: For More Information: Save Your Home Hotline at 1-866-760-8911 www.buckscounty.org/government/rowofficers/Prothonotary/forms/ MortgageForeclosureDiversionProgram.pdf
Program Features:
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Delaware County Mortgage Foreclosure Diversion Program

Purpose: Program: To help homeowners avoid sheriffs sale and save their homes. Homeowners work with a housing counselor in order to avert foreclosure through negotiating with the lender. Free foreclosure prevention counseling and assistance from Consumer Credit Counseling Services of Delaware Valley (CCCSDV). Property must be located in Delaware County. Property must be 1-4 residential units, condominium unit, or a residential co-op unit. Homeowner must reside in property. Mortgage foreclosure complaint against the property must have been filed for this program. However, clients may contact CCCSDV before complaint is served to receive free foreclosure prevention counseling assistance. Geographic Area Served: Costs Or Fees: Administering Agency: Procedures: Delaware County No cost. Delaware County Sheriffs Office and CCCSDV. When the sheriffs deputy serves the first complaint, the action of mortgage foreclosure, the homeowner also receives a written notice advising him or her to call CCCSDV to request free assistance. Call the hotline to request assistance within 30 days of receiving the notice. If the homeowner fails to call CCCSDV, the foreclosure will proceed. Once the eligible homeowner calls the hotline and schedules an appointment, CCCSDV will notify the lender that the client is seeking remedy and foreclosure will be delayed for 30 days. Contact Information: For More Information: CCCSDV Save Your Home Hotline: 1-800-989-2227 www.cccsdv.org
Program Features:
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Section III:
How do I prevent tax delinquency foreclosure?

If property taxes are unpaid on a home, it is possible to lose the home if the county sells the home at a Real Estate Tax Sale. This section contains information about how to apply for a payment agreement to prevent losing your home through tax delinquency foreclosure.
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City of Philadelphias Financial Hardship Agreements for Property Taxes

Purpose: Allows income-eligible homeowners with delinquent property taxes to enter into an affordable payment arrangement. Written payment agreement. The homeowner must pay between 5% to 10% of the households monthly income toward delinquent property taxes. Minimum payment is $25. If homeowner cannot afford 5% to 10% of their monthly income, they can request an individualized financial assessment (IFA) to determine how much of the households monthly income is available to pay towards the delinquency. Under the IFA, minimum payment is $25 per month. If a person applies for IFA, the monthly payment is the extra income shown in the application. Monthly payment may result in being higher than 10% of the household income as required by the standard plan. No down payment or other lump-sum is required toward the delinquent property taxes. All current property taxes must also be paid on time, although the homeowner can still apply annually with the Department of Revenue for a separate installment agreement for the current property taxes. Maximum Amount No maximum. Agreements exceeding 24 months require approval of the Citys Law Department. Agreements exceeding 48 months will be administered by the Citys Law Department. Maximum household income of 60% of area median income (about $46,680 for a family of 4). Homeowner must have adequate income to be able afford to pay the monthly payment under the agreement, plus the current years property taxes. Homeowner must reside in property. Homeowner must have legal or equitable title to the property. Examples include name on deed, lease purchase agreement and inheritance through will or intestate succession. Homeowner must not have breached a previous payment agreement, unless extenuating circumstances beyond the homeowners control caused the previous breach. Geographic Area Served: Administering Agency: Procedures: Philadelphia County Linebarger, Goggan, Blair, & Sampson, LLP; Goehring, Rutter and Boehm Law; Philadelphia Law Department Call the Save Your Home Philly Hotline for a referral to a housing counselor. The counselor will help you complete the written application. Written application with supporting documentation will be submitted to the firm collecting the debt. If a Sheriffs Sale is scheduled, house cannot be sold while a hardship application is pending. If accepted, the applicant is presented with a written agreement. Note: This written agreement may contain waivers of legal rights. You may wish to review the document with an attorney before signing. Linebarger may conduct annual review of income, called redetermination. If income has changed, the monthly payment amount can change accordingly. Failure of a homeowner to respond to a request for redetermination can result in cancellation of the repayment agreement. Contact Information: Save Your Home Philly Hotline (for a housing counselor): 215-334-4663 Linebarger, Goggan, Blair, & Sampson, LLP: 215-790-1117 Goehring Rutter & Boehm Law: 516-735-1910 Philadelphia Law Department: 215-683-5207
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Suburban Philadelphia Agreements for Delinquent Property Taxes

Purpose: Allow homeowners with delinquent property taxes to enter into an affordable payment arrangements under the terms of the Pennsylvania Real Estate Tax Sale Law. Written payment agreement with the County Tax Claim Offices. The Pennsylvania Real Estate Tax Sale Law, 72 Pa.C.S. 5860.101, et seq., applies to all counties except Philadelphia. Section 5860.603 of the Tax Sale Law provides the basic standards under which counties offer payment agreements to homeowners with delinquent taxes: Any owner or lien creditor of the owner may, at the option of the bureau, prior to the actual sale: Cause the property to be removed from the sale by payment in full of taxes which have become absolute and of all charges and interest due on these taxes to the time of payment or Enter into an agreement, in writing, with the bureau to stay the sale of the property upon the payment of twenty-five per centum (25%) of the amount due on all tax claims and tax judgments filed or entered against such property and the interest and costs on the taxes returned to date, as provided by this act and agreeing therein to pay the balance of said claims and judgments and the interest and costs thereon in not more than three (3) installments all within one (1) year of the date of said agreement, the agreement to specify the dates on or before which each installment shall be paid and the amount of each installment. So long as said agreement is being fully complied with by the taxpayer, the sale of the property covered by the agreement shall be stayed. But in case of default in such agreement by the owner or lien creditor, the bureau, after written notice of such default given by United States mail, postage prepaid, to the owner or lien creditor at the address stated in the agreement, shall apply all payments made against the oldest delinquent taxes and costs, then against the more recent. If sufficient payment has been made to discharge all the taxes and claims which would have caused the property to be put up for sale, the property may not be sold. If sufficient payment has not been received to discharge these taxes and claims, the bureau shall proceed with the sale of such property in the manner herein provided either at the next scheduled upset sale or at a special upset sale, either of which is to be held at least ninety (90) days after such default. If a party to an installment agreement defaults on the agreement, the bureau shall not enter into a new installment agreement with that person within three (3) years of the default. Some counties allow homeowners to make monthly payments rather than quarterly to make the payments more affordable. Monthly payment agreements have slightly different procedures to apply (see county specific information). Geographic Area Served: Costs or fees: All Pennsylvania counties, except Philadelphia. No cost to apply. Unpaid taxes will accrue at an interest rate of 0.75% per month (9% per year). Some counties have service fees. See county specific information. Generally, each county has a Tax Claim Bureau that handles delinquent taxes. See county specific information. Contact the administering agency to begin the application process to enter and affordable agreement plan. See county specific contact information on next page. See county specific information on next page.
Administering Agency:
Procedures:
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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:
If losing my home is inevitable, what are my options?

If it appears there is no resolution between the homeowner and the lender to modify the loan, there are other options besides foreclosure such as a short sale and a deed-in-lieu (DIL) of foreclosure. Although the homeowner will not own the home at the end of the process, these alternatives may be less costly and traumatic.
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Short Sales and Deed-in-Lieu of Foreclosure

Short Sales
In a short sale, a servicer allows the borrower to sell the property at its current value, even if the sale nets less than the total amount owed on the mortgage. A short sale can benefit the lender and the borrower if it is done properly. This is a complex transaction involving careful coordination and cooperation among a number of parties including servicers, appraisers, borrowers, purchasers, real estate brokers, title agencies and often mortgage insurance companies and junior lien holders. Approval of a short sale requires the borrower to list and actively market the home at its fair value. The sale must be an arms length market transaction with all proceeds (after selling costs) applied to the discounted mortgage payoff. If the borrower actively markets the property but is unable to sell it within the agreed upon time period, a servicer may consider a deed-in-lieu.
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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Deed For Lease (D4L)

Purpose: Allow qualifying homeowners of properties transferred through deed-in-lieu (DIL) of foreclosure to remain in their home and community by executing a lease with their loan servicers. Lease option in conjunction with a DIL to stay in the home after foreclosure. If the home cannot be saved, this is an option for the homeowners to simultaneously work out a deedin-lieu of foreclosure and a lease with the lender so they can stay in the home. Although they have the ability to stay in the home, this means they do not own the home anymore. Lease of up to 12 months. Loan is a first lien mortgage (second lien mortgages are not eligible) Property is a 1-4 units and is a primary residence or is leased to a tenant who uses the property as a primary residence. Loan is not guaranteed by a federal agency. At least three payments have been made since the loan origination or the last modification. Borrower is not involved in an active bankruptcy proceeding and is not a party to litigation involving the property or loan. The title is able to be conveyed (title insurance policy is required) If there are subordinate liens secured against the property, lien releases can be obtained. Occupant of the property has verifiable income. The occupant of the property must have the ability to pay market rent that is less than or equal to 31% of their monthly gross income. Lease agreement is contingent on successful completion of the DIL. Loan servicers follow their regular process for determining if a borrower is eligible for a DIL. Geographic Area Served: Costs Or Fees: All 50 States Customary and reasonable closing costs and prepaid expenses. Closing costs and expenses may be included in new mortgage amount. $75 nonrefundable application fee per occupied unit. Administering Agency: Procedures: Fannie Mae Begin the process by speaking with the mortgage servicer, they will determine if the applicant is eligible for DIL. Obtain a lease decision within 10 days of initiating the DIL consideration. A property manager (from the lender) will be sent the applicants property address and contact information to determine if the property and occupants meet the eligibility for a lease under D4L. If qualified, applicant will be notified within three business days to view the property. If the property manager is unable to contact the applicant within five business days of obtaining the referral, they will no longer be considered for the lease. Contact Information: For More Information: Work with the mortgage servicer. If the servicer is unfamiliar with the D4L Program, ask them to call 1-888-326-6435.
Maximum Amount Eligibility Requirements:
45
Housing Counseling Agency Directory

Name Address City Zip Phone
Approved by HEMAP OHCD HUD
1080 N. Delaware Ave., Suite 200
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.
46
Housing Counseling Agency Directory (Continued)

Name Address City Zip Phone
Approved by HEMAP OHCD HUD
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.
47
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
48
Complaint
49
Important Notice
50
Judgment
51
Sheriffs Sale Scheduled
52
Printing made possible by a grant from the Citi Foundation

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Foreclosure Prevention

Summer/Fall 2010 Edition

Prepared by: UAC Foreclosure Prevention Task Force

Visit us on the Web: www.uac.org/foreclosurehelp.htm

1207 Chestnut Street Philadelphia, PA 19107

1207 Chestnut Street 7th Floor Philadelphia, PA 19107

phone 215-851-0110 fax 215-851-0514 email [email protected]

Sharmain Matlock-Turner President/CEO

About the UAC Foreclosure Prevention Task Force

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

Making Home Affordable Hotlines Legal Assistance (income limits)

ext. 201 215-851-1738 215-686-3530 215-348-6124 610-334-6850 610-891-4296 610-278-3331

Additional Information Resources

Federal Reserve Bank of Philadelphia Virtual Foreclosure Resource Center

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

What is mortgage foreclosure and how does it work?

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

I received the Important Notice letter

I received the Praecipe Judgment

My house is scheduled for Sheriff s Sale

(See example on Page 52)

Sheriff s Sale is held & property is sold

I received the Complaint for Ejectment

The Sheriff has given me a move-out date

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

The Foreclosure Process Explained

Step 3: I received a Complaint

Step 2: I received a Notice of Intention to Foreclose

Step 4: I received the Important Notice letter

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

Step 5: I received a Judgment and my house is scheduled for Sheriff s Sale

Step 6: Sheriffs Sale is held & property is sold

Step 8: The Sheriff has given me a move-out date

Step 7: I received a Complaint for Ejectment

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

How can I prevent the Sheriffs Sale?

Petition to Strike the Judgment

Right to Payoff in Full

Petition to Open Judgment

Working with the Lender

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

What about bankruptcy?

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

County Office Contact Information

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

How can I prevent mortgage foreclosure?

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

Housing Counseling and Preventing Foreclosure

What is the benefit of seeing a housing counselor?

What do housing counselors do?

How much does it cost?

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

Mortgage Foreclosure Rescue and Loan Modification Scams

Common Loan Modification Scams

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

Reporting a Scam and Getting Help

Foreclosure Prevention Resource Guide Summer/Fall 2010 Edition www.uac.org/foreclosurehelp.htm

Im not in foreclosure, but struggling to make my mortgage payments

FHA Rate and Term Refinances

Program: Program Features:

Subordinate Financing Eligibility Requirements: