Listings

Buyers

Sellers

Mortgage Info

Local LINKS

More RESOURCES

BROKERS

Foreclosure

A.R.E NEWSLETTERS

MARKET ACTIVITY REPORTS

Know UR OPTIONS

realestate.yahoo.com

 

     Courtesy of  HUD, OHFA, Ohio Treasurer and Au Glaize Real Estate Co.

   

How to Avoid Foreclosure

 

The guidance below (and in the "How to Avoid Foreclosure" pamphlet) is applicable to homeowners with FHA Insured loans. While a good deal of this information may apply to all homeowners in danger of losing their homes, not all of the foreclosure avoidance tools mentioned may be available to you if you have a VA or conventional loan. Additionally, HUD/FHA does not have any Loss Mitigation oversight over VA or conventional loans. Please contact your lender or a housing counseling agency.

Q: What Happens When I Miss My Mortgage Payments?

Foreclosure may occur. This is the legal means that your lender can use to repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued. If that happens, you not only lose your home, you also would owe HUD an additional amount. Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if possible.

Q: What Should I Do?

  1. DO NOT IGNORE THE LETTERS FROM YOUR LENDER. If you are having problems making your payments, call or write to your lender's Loss Mitigation Department without delay. Explain your situation. Be prepared to provide them with financial information, such as your monthly income and expenses. Without this information, they may not be able to help.
  2. Stay in your home for now. You may not qualify for assistance if you abandon your property.
  3. Contact a HUD-approved housing counseling agency. Call (800) 569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources. They frequently have information on services and programs offered by Government agencies as well as private and community organizations that could help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge. You can also contact Consumer Credit Counseling Service (CCCS), at 888-995-HOME or on-line 24/7 at www.cccshope.org this is a legitimate counseling service available for no-fee (see below for more information.)
  4. Most recent resource as of 9-15-08 is http://www.stopforeclosureinamerica.com/

Q: What Are My Alternatives?

You may be considered for the following: Special Forbearance. Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have recently experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you would be able to meet the requirements of the new payment plan.

Mortgage Modification. You may be able to refinance the debt and/or extend the term of your mortgage loan. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount.

Partial Claim. Your lender may be able to work with you to obtain a one-time payment from the FHA-Insurance fund to bring your mortgage current.


 You may qualify if:
  1. your loan is at least 4 months delinquent but no more than 12 months delinquent;
  2. you are able to begin making full mortgage payments.
When your lender files a Partial Claim, the U.S. Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.The Promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property. Pre-foreclosure sale. This will allow you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan.

You may qualify if:
  1. the loan is at least 2 months delinquent;
  2. you are able to sell your house within 3 to 5 months; and
  3. a new appraisal (that your lender will obtain) shows that the value of your home meets HUD program guidelines.

Deed-in-lieu of foreclosure. As a last resort, you may be able to voluntarily "give back" your property to the lender. This won't save your house, but it is not as damaging to your credit rating as a foreclosure.

You may qualify if:

  1. you are in default and don't qualify for any of the other options;
  2. your attempts at selling the house before foreclosure were unsuccessful; and
  3. you don't have another FHA mortgage in default.

Q: How Do I Know if I Qualify for Any of These Alternatives?

Your lender will determine if you qualify for any of the alternatives. A housing counseling agency can also help you determine which, if any, of these options may meet your needs and also assist you in interacting with your lender. Call (800) 569-4287 or TDD (800) 877-8339.

[***IMPORTANT NOTE: If you have just fallen behind in mortgage payments and no legal action has yet been initiated, or you are in pre-forclosure there is a LOCAL CONTACT AGENCY available to you to contact and seek guidance to avoid a foreclosure action. CONTACT: Consumer Credit Counseling Service (sponsored by Graceworks Lutheran Services) at 937-492-1953 or www.graceworks.org. Ask to speak with a HUD Certified Credit Counselor. (Ask for Ruth Menz or contact her at rmenz@graceworks.org) They are located at 113 N. Ohio St., in Sidney, OH. 45365]

Q: Should I Be Aware of Anything Else?

Yes. Beware of scams! Solutions that sound too simple or too good to be true usually are. If you're selling your home without professional guidance, beware of buyers who try to rush you through the process. Unfortunately, there are people who may try to take advantage of your financial difficulty. Be especially alert to the following:

Equity skimming. In this type of scam, a "buyer" approaches you, offering to get you out of financial trouble by promising to pay off your mortgage or give you a sum of money when the property is sold. The "buyer" may suggest that you move out quickly and deed the property to him or her. The "buyer" then collects rent for a time, does not make any mortgage payments, and allows the lender to foreclose. Remember, signing over your deed to someone else does not necessarily relieve you of your obligation on your loan.

*Rest assured these scam artist are working in the Mercer-Auglaize area. Be on guard! Don't let them in your house or answer their questions, their intent is to exploit and take advantage of YOU!

Phony counseling agencies. Some groups calling themselves "counseling agencies" may approach you and offer to perform certain services for a fee. These could well be services you   could do for yourself for free, such as negotiating a new payment plan with your lender, or pursuing a pre-foreclosure sale. If you have any doubt about paying for such services, call a HUD-approved housing counseling agency (www.hud.gov/offices/hsg/sfn//hcc/hcs.cfm) at (800) 569-4287 or TDD (800) 877-8339. Do this before you pay anyone or sign anything.

Q: Are There Any Precautions I Can Take?

Here are several precautions that should help you avoid being "taken" by a scam artist:
  1. Don't sign any papers you don't fully understand.
  2. Make sure you get all "promises" in writing.
  3. Beware of any contract of sale of loan assumption where you are not formally released from liability for your mortgage debt.
  4. Check with a lawyer or your mortgage company before entering into any deal involving your home.
  5. If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information.

Q: What Are the Main Points I Should Remember?

  1. Don't lose your home and damage your credit history.
  2. Call or write your mortgage lender immediately and be honest about your financial situation.
  3. Stay in your home to make sure you qualify for assistance.
  4. Arrange an appointment with a HUD-approved housing counselor to explore your options at (800) 569-4287 or TDD (800) 877-8339.
  5. Cooperate with the counselor or lender trying to help you.
  6. Explore every alternative to keep your home.
  7. Beware of scams.
  8. Do not sign anything you don't understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation.

Q: Is there someone locally I can talk to and find out my legal rights?

1. The Auglaize County Commissioners have organized a local group of resources. For More Information click here: http://images.agentcenter.com/client/5/5/5/30555/Save_Our_House_aug.pdf

2. If you are all ready into or nearing, a foreclosure action, contact a local or your personal attorney. We recommend contacting Michael Burton, Attorney at 419-738-8195. Michael is experienced in this area and can usually help.

3.  Time is “NOT” on your side. The quicker you act the better your chances of working out a solution.

4.  Options that you may have that a professional (attorney or real estate broker) can assist with are; (1) a “short sale,” (2) a work out with the lender, (3) a moratorium on 2-3 months of mortgage payments to allow you time to catch up.

5.  This is not going away on its own, you need to do something. Don’t bury your head in the sand, there’s still hope. 

 Act now. Delaying can't help. If you do nothing, YOU WILL LOSE YOUR HOME and your good credit rating.

Foreclosures ~ from a Lenders Perspective


In today's real estate marketplace, the number of property owners who are behind in their mortgage payments has dramatically increased, more so in rural counties like Mercer & Auglaize than you may initially want to believe. The number of default notices and foreclosures is also rising. Unfortunately, a significant number of property owners who are in danger of losing their homes instinctively take actions which are detrimental to maintaining their property. Property owners need to be educated about the financing options available to them. Implementing the proper strategies early on is the key to helping property owners preserve their investment and protect their credit.

Questions and Answers

Question: When borrowers get behind in making their mortgage payments, many don't feel that they can contact the lender. In fact, they often actively avoid the lender. Why is this such a big mistake?

Answer: From the lender's standpoint, we have many options we can offer the borrower that the borrower is usually unaware of (which is one of the reasons why they actively avoid us). Whether they can afford to stay in the home or not, foreclosure is not the right solution in either case. It's not a way for them to get out. There are options for them to keep their home if it's affordable to them and there are options for them to get out of the home if they can't afford to make payments any longer. That's where the mistake is made -- there are options available to the borrower, but in most cases they don't seek those options.

Question: How would you describe the relationship between lenders and borrowers? Aren't they dependent upon one another in terms of working together, especially when problems arise?  

Answer: The biggest concern is that a lot of times when a borrower is going into default, instead of turning to their lender as their partner and saying, 'I need help. What should I do?' They sometimes turn to outside options like bankruptcy attorneys, thinking it's their only option. The most important thing in working together with their lender is that they learn there are better options for them that wouldn't harm their credit as much and wouldn't be so detrimental to their future.

Question: Most borrowers don't understand this, so they panic and run in the opposite direction, don't they?

Answer: They have this view of the bank as the "big bad lender" who wants to take their home. The last thing the lender wants is their home. Something that I always urge people to understand is that the bank does not want your house in any form or fashion. That is actually the worst option for both the borrower and the lender.

Question: Most borrowers really don't understand the lender's perspective in a default situation. What's at stake for the lender?

Answer: The lender has a secured interest in the property, but if we have an asset that is not making any money for us it puts us in jeopardy. The borrower looks at the situation like, "Well, the bank is huge. They have lots of money, so my house is not going to harm them." However, as a lender, the more loans we have in our portfolio that go into default the more at risk we are as far as maintaining our cash flow and it puts our financial situation in jeopardy as well.

Question: What are some options a lender may provide to borrowers who have fallen behind in their payments?

Answer: We definitely have to get them to their loss mitigation department, which most every lender has. In loss mitigation, we send out a financial package for the borrower to complete to get a good picture of where the borrower is at today. Let's say they've had the loan for five years. If I pull the original file, looking at their original financials means nothing because their lives could have changed dramatically in five years. We then see if the ability is there for the borrower to make the payment. Modification or forbearance agreements are good options to help them get their loans current and keep them in the property. If the borrower cannot afford to make the payment and they know they are going to lose the property through foreclosure, a good option is to get them to list the property and possibly do a short sale if they owe more than what the property is worth. If they owe less than what it's worth, obviously selling the property and getting the equity out would be a good option. Often a borrower will want to do a deed in lieu, where the turn the property back over to us. In doing a deed in lieu, usually the borrower doesn't have a whole lot of equity, but they don't have a lot of time either with a foreclosure encroaching on them and they just want to give the property back. These are all options that are available through loss mitigation to assist borrowers.

Question: You mentioned short sale as one of the options for a borrower. How do most lenders view short sales?

Answer: For the lender, since the property is already upside down, meaning more is owed on the property than it is currently worth, and the borrower can't make the payment, one of two things is going to happen: 1) we are either going to do a short sale and agree to sell the property, or 2) we are going to foreclose on the property. If I have a borrower who is willing to work with me -- let's say they owe $175,000 on their property-- and they are getting an offer for $125,000 and that is truly what it's worth today; then they sell it, close in thirty days and pay me back, I can take my $125,000 and lend it to another party on a new loan that is going to make money. Now if I go the foreclosure route the difference is that it will take me six months to a year to get the process done and get the borrower out of the house. I then have to look at the property -- does it need work? Does it need property preservation? Is there damage? Are there delinquent taxes? All these different aspects need to be considered. At that point, after I've foreclosed on the property, in addition to making any needed corrections, I also have to carry the property the whole time it is being listed and marketed for sale, which means there is another period of time that my money is out there and I'm not getting paid.

Question: You also mentioned forbearance agreements and modifications. What are these options and how do they work?

Answer: A forbearance agreement is when you take the delinquency on the property when the borrower has gotten past due, have them submit their current financial information and set up a plan to let the borrower pay their monthly mortgage payment along with a portion of the delinquency until they get their loan current. They pay a little more to work on catching up their delinquency. Once the loan is current they go back to regular servicing and just make their regular monthly payment. If I look at their financials and they have the ability to pay their regular mortgage payment, but they really don't need a bigger payment because they don't have the extra amount each month that a forbearance agreement would require, then I would put them on a loan modification. They still have the ability to afford the property and make the monthly payment, but they don't have the ability to pay extra. The loan modification is when you have a written agreement between you and the borrower and it changes one or more terms of the original note. You can add the delinquency to the balance, you can extend the maturity date out to possibly get the payments a little lower, or you can change the interest rate if necessary. There are lots of options, but the most common is to take the delinquency, add it to the end of the loan and reset the maturity date. The borrower then goes back to making their regular monthly payment.

Question: Some property owners opt to vacate the property when they find they can no longer afford to make the payments. Why is this not the best approach to take?

Answer: In this case, borrowers likely think to themselves, "Okay, I can't afford it and I have to get out because the bank is going to take it," and they go find somewhere else to live. If they had known about the potential options available to them through the lender they may not have had to move. Even if they have to move out due to pending foreclosure or short sale, we can at least give them time to transition from the property. A vacant property is never a good asset. It's subject to damage from vandalism and looting. While the home is occupied it is generally being kept up -- the lawn is being watered, the pipes aren't rusting out because they're not being used and the house is not being broken into because it looks vacant.

Question: Is refinancing an option for a proactive borrower who contacts their lender to talk about their situation?

Answer: Yes, it is. However, for borrowers who have got some equity, yet they are delinquent and just can't get the amount of money they need to catch up, if their loan is not so good, the rate is not that great and everything is not where they would like it to be, I suggest they go ahead and refinance the whole thing because that way they take the delinquency and the loan balance and get a new payment; then they're back current again. There is also the option of getting a short term or long term second mortgage. They may pay a point or two more in interest but if they're only borrowing $10,000 just to catch up on their $150,000 mortgage, they're borrowing at a higher interest rate. If their first interest rate on the loan that is in delinquency is a good rate, why change that for a rate that is not going to be as good? Just get a second and get yourself caught up, or possibly even consolidate some additional debt to make your life a little easier.

Question: Where can borrowers turn for expert advice on their financing options?

Answer: The best option for borrowers is to call their mortgage company. Talk to the lender and see what they have available to you. If you don't get enough options through them, contact a consumer credit counselor, a non-profit consumer agency that helps people alleviate their debt, and see what options are available. There are consumer credit agencies all over the country. Keep in mind that the best option is to start with your lender. Lenders have so many options available to the borrower that there is no reason to hide from them. They are there to help you. The last thing they want is no contact with you and to have to take the house back. That is exactly what the bank does not want.

Question: What is the best way to create a "win-win" for the lender and the borrower in the case of a property in default?

Answer: A lot of people don't like to state their financials because they're afraid to look at it. My number one "win-win" for the borrower and lender is to educate the borrower on what to look at regarding their financial situation to determine a definitive "yes" or "no" answer on whether they can afford the property. I educate them on whether there is a way for them to save the property or a way for them to get out of their debt. The reason this is also a "win-win" for the lender is because when the lender understands the borrower's financial situation and the borrower accepts and acknowledges their financial situation, now we know which way to move forward in partnership and either sell the property or maintain the property. That is a true "win-win." It's basically turning on the light for everyone involved to see the best course of action.  

Question: Where can I file a complaint if I believe I have been a victim of predatory lending? Answer:  Complaints regarding lending can be filed with the Ohio Attorney General’s Office at 1-800-282-0515 or http://ag.state.oh.us

50% of all Foreclosures can be prevented by calling your Mortgage Company, and asking to speak to someone in the "Loss Mitigation Department," about a repayment plan, loan modification, forbearance agreement, partial claim or loan assumption.

  


Common Foreclosure Questions

Richard Cordray, Ohio Treasurer of State 

1. What should I do if I get behind in my mortgage payments?

As soon as you know you won’t be able to make your payment, CALL YOUR LENDER and ask for the Loss Mitigation Department. Be honest with them about your situation so they can help you choose the best option. 

Loss Mitigation is the process by which the mortgage company will re-negotiate the terms of your loan. Your lender does not want to take your home. The average foreclosure costs the lender about $40,000 so they want to work with you. 50% of all foreclosures can be halted by contacting your Lender’s Loss Mitigation Department. 

2. What workout options might be available to me?

As described in the HUD publication “How to Avoid Foreclosure”: 

Special Forbearance: Your lender may be able to arrange a repayment plan based on your financial situation and may even provide for a temporary reduction or suspension of your payments. You may qualify for this if you have experienced a reduction in income or an increase in living expenses. You must furnish information to your lender to show that you will be able to meet the requirements of the new payment plan. 

Mortgage Modification: You may be able to refinance the debt and/or extend the term of your mortgage loan. You may even qualify for a lower interest rate or reduced principal. This may help you catch up by reducing the monthly payments to a more affordable level. You may qualify if you have recovered from a financial problem and can afford the new payment amount. 

Partial Claim:  Your lender may be able to work with you to obtain a one-time payment from the FHA Insurance fund to bring your mortgage current.  

     You may qualify if: 

     1. Your loan is at least 4 months delinquent but no more than 12 months delinquent; 

     2. You are able to begin making full mortgage payments. 

When your lender files a Partial Claim, the US Department of Housing and Urban Development will pay your lender the amount necessary to bring your mortgage current. 

You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full.

The promissory Note is interest-free and is due when you pay off the first mortgage or when you sell the property. 

Pre-foreclosure Sale: You should first try to sell your home for as much as possible in order to satisfy the lender as well as your own economic interests. However, sometimes your home will not sell for enough money to accomplish both of these goals. A short sale allows you to avoid foreclosure by selling your property for an amount less than the amount necessary to pay off your mortgage loan. 

      You may qualify if: 

      1. The loan is at least 2 months delinquent: 

      2. You are able to sell your house within 3 to 5 months; and 

      3. The appraisal (that your lender will obtain) shows that the “as is” value of your home meets HUD guidelines. 

Deed-in-lieu foreclosure: As a last resort, you may be able to voluntarily “give back” your property to the lender. This won’t save your house but is not as damaging to your credit rating. 

     You may qualify if: 

     1. You are in default and don’t qualify for any other options; 

     2. Your attempts at selling the house before foreclosure were unsuccessful;     and

     3. You don’t have another FHA mortgage in default. 

 3. Who can help me negotiate with my lender?

A HUD-approved non-profit counseling agency will first help you prepare a realistic budget so that you can decide whether you can afford to keep your home. They will know if community resources are available to help you. They also are experienced in communicating with lenders. They will determine where you are in the delinquency process and what work out options are available. 

By visiting www.hud.gov or by calling 1-800-569-4287, you can find the nearest HUD-approved housing counseling agency.   The nearest HUD approved counseling service in NW Ohio is Consumer Credit Couseling Service (CCCS) You can call them at 1-888-995-HOPE (anticipate a long wait) or on-line 24/7 at www.cccshope.org

Consumer Credit Counseling Service (CCCS), a member of the CredAbility network, has been helping individuals and families deal with financial crises for more than 40 years.

They are committed to providing you with the help you need to objectively assess your situation and make an informed decision about how to best reach your financial goals. CCCS will be there to assist and support you, regardless of how you decide to handle your situation. At the end of your session, they will provide you with information on other education and counseling opportunities available for free through their agency. In order for them to help you, they need you to fully participate and provide the requested information. At the completion of your session, they will provide you with a complete written copy of your session, an outline of your options and their recommendations.

Please gather the following items before beginning:

  • Recent correspondence or statements from your mortgage company
  • Documentation of your monthly income
  • List of household expenses
  • Your most recent creditor statements

4. Should I consider refinancing?

Being able to refinance your loan depends on several things. If you are already delinquent on your present mortgage, you r credit rating will be adversely affected. This could prevent you from getting a new mortgage at a reasonable interest rate. In addition, you may not be able to afford the fees and points that most lenders charge, especially if you have little or no equity in your home. If you do want to refinance , shop around for the best rate and terms possible and beware of predatory lenders. Go to   http://www.dontborrowtrouble.com/ for information about predatory lending. 

The Ohio Housing Finance Agency has a refinancing program that features a reasonable fixed rate. Additional details may be obtained at www.ohiohome.org 

Also ask your lender about the Federal Home Loan Bank’s refinancing assistance program, which is helping to fund banks to refinance existing mortgages. 

5. What should I do if I get a foreclosure notice?

You have 28 days from the date you receive the foreclosure complaint to file an answer with the court and with your  lender’s attorney. An answer may be styled in a legal format or in letter form. This is an important step to protecting your legal interests. 

Call your lender right away to discuss alternatives to foreclosure. Keep in mind that you will have to pay the lender’s legal expenses as well as your past due mortgage payments and penalties. Also, once your loan is in foreclosure, you will receive multiple communications from people who will tell you that they can help you keep your house. Be cautious. Most of the time, these self-proclaimed specialists charge a hefty fee for services that are worthless or that you can perform yourself just be calling your lender’s Loss Mitigation Department or be calling a HUD-approved housing counselor. 

6. How long does a foreclosure take?

The legal proceedings may take anywhere from 6 months to 1 year or more. 

7. Where do I find help?

Call a United Way funded information and referral service. Or call the national helpline at 1-888-995-HOPE(4673) 

8. Can I retain my house after it goes to Sheriff’s Sale?

You may retain ownership of your home (and continue to live in it) up until the time that the confirmation  of sale has been filed with the court. 

9. When do I actually have to leave the house?

You should be prepared to vacate the property once the foreclosure sale has been confirmed – usually 30 to 60 days after the foreclosure sale. If you hoose not to vacate the property, an eviction notice will be placed on your door informing you of the date you will be evicted by the Sheriff. Your personal belongings will be placed outside the home and eventually removed. If you have not made alternative living arrangements, a HUD-approved nonprofit housing counseling agency can refer you to community services in your area (if they exist). 

10. Where can I file a complaint if I believe I have been a victim of predatory lending

Complaints regarding predatory lending can be filed with  the Ohio Attorney General’s Office at  http://www.ag.state.oh.us/  

  

The Foreclosure Process   (excerpted from www.dontborrowtroublecc.org)

Judicial Foreclosure

Ohio is what they call a judicial foreclosure state. This means that if you stop paying your mortgage, your lender must sue you, in court, and obtain a ruling against you, before you have to leave the house. Until the lender wins in court (and until the house is sold at a public auction – called a “Sheriff’s Sale.”) you are the only person who has a right to be in the house. Lender’s often threaten to throw you out in an attempt to get you to pay. But, they cannot do this, until they win in Court.

Complaint Must be Filed

The first step that the lender must take to convince the Court to sell your house at Sheriff’s Sale is to file what is called a “Complaint.” The complaint only has to state that you owe the bank money and haven’t paid. The note that you signed (the promise to repay the loan) and the Mortgage (the document that you signed giving the bank a lien on your house, until you repay the note) must be attached to the complaint. Once you receive the complaint in the mail, you have 28 days to file your official response with the Court. Click here for a sample request for additional time to answer. Click here for a sample request for the closing documents.

Answer

The response that you must file within 28 days is called an “Answer.” If you don't think that you owe the money that the lender is claiming, your answer should tell the Court why you don’t think you owe the money. If you don’t file an Answer, the lender will ask the Court for a Default Hearing. The Default Hearing is designed to give judgment to the lender when the borrower does not appear in the case to defend himself. Filing the Answer is the first step that the borrower must take to appear in the case. Click here for a sample request for additional time to answer. Click here for a sample request for the closing documents.

Hearings Must Take Place

The lender cannot obtain judgment against you without first being required to appear at a hearing in Court. You have the right to receive warning before any hearings take place on your case. (You can check if there are any upcoming hearing dates on your case by calling the Common Pleas Court Docket hotline (216) 443-7960, or checking the website for the County Court.)

Magistrate in Place of Judge

In Cuyahoga County, Magistrates, rather than judges, hear foreclosure cases. The Magistrates can hold hearings, issue orders to either side, take evidence and preside over the entire case. However, the Magistrate’s final award of Judgment in a Foreclosure case is not final until it has been agreed to by the Judge. Therefore, once the Magistrate issues a final order, either party has two weeks to file written objections with the Judge who has been assigned to the case.

Judgment Needed Before Sheriff's Sale

Nobody besides you has the right to be in the house until eight days after it is sold at Sheriff’s Sale. The house will not be set for Sheriff’s sale until the Court has awarded judgment to the lender. The exact date when the sale will take place will be listed on the Court’s docket on the internet.

Borrowers Options

Most lenders want to help the borrower who has been sued in foreclosure. They have people who try to help borrowers enter into repayment plans. (even after they are in foreclosure) Those departments are called “Loss Mitigation.” When you are in foreclosure and want to call your lender for help, you should ask for the Loss Mitiga    tion Department. Click here for a sample request for additional time to answer. Click here for a sample request for the closing documents.

Timeline

The time between the filing of a foreclosure Complaint and the Sheriff’s sale used to take anywhere between 1 ½ and 2 years. Now, that time is much shorter. The Court is trying to take steps to shorten that time to one year. It will most likely be at least 6 months from the time the Complaint is filed until the Sheriff’s Sale occurs, however. To be sure, you should check the Common Pleas Civil Docket every two weeks if you have been sued in foreclosure.

================================================== 

    Courtesy of:                                             

   Au Glaize Real Estate Co.      

         (419)738-2422                                        

   US Department of Housing and Urban Development

          Go to: www.hud.gov

                   and  

    Richard Cordray, Treasurer State of Ohio

            Save Our Homes Task Force

            Go to: www.saourhomestaskforce.org

  Consumer Credit Counseling Service (CCCS)

           Go to: www.cccshope.org

Cuyahoga County Foreclosure Prevention Program

"Don't Borrow Trouble" Mike Wiseman, Attorney

           Go to: www.dontborrowtroublecc.org

http://www.stopforeclosureinamerica.com/

 

SEE ARTICLES BELOW:

 

Agency creates program to stem foreclosures   by Carl HorstApril 2007 Publisher : Carl Horst Source : OHIO REALTOR Newspaper  
 

An innovative program offered through the Ohio Housing Finance Agency will give homeowners facing imminent mortgage foreclosure the option of refinancing to save their home.

The program, which be offered beginning in April, is designed to assist Ohioans "whose current (mortgage) loan is inappropriate for their financial circumstances." The initial phase of the program will make up to $100 million available to homeowners who may be on the brink of foreclosure and are seeking more affordable monthly payments.

"We're hoping to help people who are in trouble…whether they're in foreclosure or in danger of going into foreclosure…by paying off the old mortgage and getting them into a new loan at a lower rate," said  Joseph Gerdenich, a Toledo REALTOR, who was chairman of OHFA during the program's creation. "This isn't for folks who are in over their heads because they piled up too much credit card debt, however. It's for people who may have lost a job or are in mortgages where the interest rate is simply too high.

"OHFA helps put people into housing and (this program) will hopefully help to keep them there."

Gerdenich noted that the program's participants will have to qualify through one of the OHFA-approved lenders, which are located in every country statewide. In addition, the program will stipulate homebuyer education and counseling for participants.

The program is especially timely, as the number of Ohioans who have lost their homes to foreclosure and sheriff sales has continued to escalate. A recent study places Ohio eighth among the nation's 10 highest states experiencing foreclosures.

In 2006, the state's 81,517 foreclosure filings represented one for every 59 Ohio households, according to a report by RealtyTrac, Inc. Last year's totals represent a 64 percent increase from 2005 filings.

Further, a report by Policy Matters Ohio notes that, "In 61 of Ohio's 88 counties, foreclosure filings have quadrupled over the last decade, as they have for the state as a whole.

"Cuyahoga County ranked first in foreclosure filings per person. But while the problem is more concentrated in urban counties, it is common statewide," the report continues. Other counties listed in the top 10 of foreclosure filings: Montgomery, Summit, Brown, Highland, Mahoning, Marion, Clark, Lucas and Hamilton.

"Foreclosures are not only a hardship on families fighting to save their homes, but they can have a serious impact on our economy," Gov. Ted Strickland said in report announcing the program. "Ohio's foreclosure rate is not only high compared to other states, but it has gradually increased and is expected to grow faster in the next two years. This problem demands a comprehensive response."

A new state task force, which will include representatives of the state, local governments, lenders, non-profits and the private sector, will develop models for foreclosure prevention, intervention and assistance.

"The goal is to provide an affordable, fixed-rate financing alternative to owner-occupied households whose current loan is inappropriate for their financial circumstances," Gerdenich said.

Customers to be served by the program include, but are not limited to, persons whose first and/or second mortgage are at a rate higher than that available through the OHFA Refinance Program; at an adjustable rate of interest; contains an interest-only component resulting in a monthly payment that is no longer affordable to the household; or a non-traditional mortgage product the household deems inappropriate for them.

Ohioans interested in participating in the program should contact an OHFA-approved lender. For a complete listing of approved lenders, visit OHFA's Web site http://www.ohiohome.org/.

"I'm sure that--from time to time--a member may be contacted by a past customer that is struggling to avoid foreclosure and looking for some help," said Don Freels, chief executive officer of the Ohio Association of REALTORS.

"Because of the good work of Chairman Gerdenich, we can direct these folks to OHFA and, as a result, hopefully assist these people in getting the support they need."

 

 

 

OPPORTUNITY LOAN REFINANCE PROGRAM

Do you have an adjustable rate mortgage (ARM) and worry about how you are going to make your monthly mortgage payment once the interest rate resets? Did you finance your home with an interest-only loan? The Opportunity Loan may be able to help you.

The program
The Opportunity Loan is a refinance program that provides an affordable 30-year, fixed-rate financing alternative to borrowers who are up-to-date with their payments and feel their current loan does not fit their financial circumstances. Borrowers need to have a good payment history.

Second mortgage option
To assist families with closing costs, Opportunity Loan also offers a 20-year, fixed-rate second mortgage option at an amount up to four percent of the appraised value of the home. The second mortgage may be used for other similar financing charges such as payoff of the first mortgage, including late fees or attorney fees, prepayment penalties, or escrow accounts for real estate taxes and homeowners insurance.

Borrower education
A minimum of four hours of HUD-approved counseling is required. Typically, this includes two hours during the initial interview, and an additional two hours of one-on-one counseling. Proof of education must be provided prior to closing. For a list of available counselors, visit www.hud.gov. OHFA also requires post-purchase counseling in the event a mortgage payment under the refinanced loan is 30 or more days late.

You may be reimbursed for out-of-pocket expenses for appraisal, credit report or the up-front hazard insurance payment with proper documentation.

A full appraisal is required to determine the true current value of the home. Mortgage insurance is required for loans that have a greater than 80 percent loan-to-value ratio. 

Am I eligible?

  • The borrower must be up-to-date with payments on current loan, and household income may not exceed 125 percent of the area median gross income of their county.  View refinance income limits
  • Generally, the borrower needs to have a timely mortgage payment history with their current servicer for the past 12 months.
  • The household must be owner occupied. Eligible properties include single-family detached housing, condominiums or townhouses. No two to four-unit properties or manufactured homes are currently permitted.

Is this program right for me?
A participating lender will be happy to assist you in determining what home loan best fits your needs. Over 185 lending institutions throughout Ohio work with OHFA.  Find a lender http://www.ohiohome.org/

While we strive to assist as many borrowers as possible, applicants must still qualify through lender underwriting guidelines. Any late payments on your current loan could directly affect your ability to qualify.

Additional resources
Various local, state and federal organizations and agencies serve as a resource for affordable housing issues. If you find that you do not qualify for an Opportunity Loan, other options may be available to you through additional housing resources.

To help educate homebuyers and homeowners about today's mortgage options, the National Association of REALTORS® (NAR) and the Center for Responsible Lending have produced a series of consumer information brochures:

  • How to Avoid Foreclosure and Keep Your Home
  • How to Avoid Predatory Lending
  • Specialty (Nontraditional) Mortgages: What are the Risks and Advantages?
  • Traditional Mortgages: Understanding Your Options

NAR has also issued a brochure in partnership with HUD's Federal Housing Administration:

  • FHA Improvements Benefit You

You can find all the brochures on NAR's web site at www.REALTOR.org/subprime.

LOANS ARE AVAILABLE ON A FIRST-COME, FIRST-SERVED BASIS

Loans are available on a fair and equal basis regardless of race, color, ancestry, national origin, religion, sex or physical handicap.

http://www.ohiohome.org/

  Go here for more information:

  http://www.ohiohome.org/refinance/default.htm

 

 

 

You Can Avoid Foreclosure and Keep Your Home

General information
Facing money problems
Steps to take when you can't pay your mortgage
Common questions to save your home
Common questions for servicemembers

Losing a home can be financially and personally devastating. Here's information to help you keep your home. Relief may be available.
  • People facing money problems:

    If you are facing unemployment or have money problems, you may be able to keep your home if you know the right steps to take. Read on for important information and links to local organizations that can help you get through difficult times without losing your home. Government organizations and the mortgage industry worked together to provide this information to help you keep your home.
  • Disaster area victims:

    If you live or work in an area declared a disaster by the President and the hurricane, tornado, flood, wildfire, or other natural or man-made event damaged your home or reduced your income, your lender will provide disaster relief:
    • For 90 days on an FHA-insured loan. Go to the Disaster Help from the button on the left of this page.
    • In most cases for other loans.
 
  • Military personnel and spouses:

    If you or your spouse is on active military duty, you may qualify for a reduction in your interest rate resulting in lower payments. Read how the Servicemembers Civil Relief Act of 2003 (formerly the Soldiers' and Sailors' Civil Relief Act of 1940) affects military homeowners.

Facing Money Problems: - (Top)

Financial problems are most often associated with major life changes like:
  • Job loss
  • Cuts in work hours or overtime
  • Retirement
  • Illness, injury, or death of a family member
  • Divorce or separation
If your family is facing any of these issues and you can't pay your bills, look closely at what you owe and what you earn. Eliminate unnecessary spending and reach out for help if you still can't make ends meet. Taking action right away can help you protect your family from the loss of your home.

Steps to take when you can't pay your mortgage: - (Top)

Contact your lender as soon as you have a problem
Talk to a housing counselor
Prioritize your debts
Explore loan workout solutions with your lender
If keeping your home is not an option
Beware of predatory lending schemes 

1. Contact your lender as soon as you have a problem - (Top)

Many people avoid calling lenders about money troubles because we:

    • Feel embarrassed discussing money problems with others
    • Believe that if lenders know we are in trouble, they will automatically rush to a collection agency or foreclosure (seize property for failure to pay a mortgage debt)

But lenders want to help borrowers keep their homes because:
    • Foreclosure is expensive for lenders, mortgage insurers and investors
    • HUD and private mortgage insurance companies and investors like Freddie Mac and Fannie Mae require lenders to work aggressively to help borrowers facing money problems

Lenders have workout options (choices) to help you and:
    • These options work best when your loan is only one or two payments behind
    • The farther behind you are on your payments, the fewer options are available

Don't assume that your problems will quickly correct themselves:
    • Don't lose valuable time being overly optimistic
    • Contact your mortgage lender to discuss your circumstances as soon as you realize that you're unable to make your payments
    • Look forward to your lender being willing to explore many possible solutions, without guaranteeing any one particular solution

      Finding your lender

      Check the following sources to contact your lender:
      • Your monthly mortgage billing statement
      • Your payment coupon book
 Information to have ready when you call

To help you, lenders usually need:
      • Your loan account number
      • A brief explanation of your circumstances
      • Recent income documents:
        • Pay stubs
        • Benefit statements from Social Security, disability, unemployment, retirement, or public assistance
        • Tax returns or a year-to-date profit and loss statement, if self-employed
        • A list of household expenses

Expect to have more than one phone conversation with your lender. Typically, your lender will mail you a "loan workout" package. This package contains information, forms and instructions. If you want to be considered for assistance you must complete the forms fully and truthfully and return them to your lender quickly. Your lender will review the complete package before talking about a solution with you.

CALL YOUR LENDER TODAY! The sooner you call, the sooner help is available.Don't ignore mail from your lenderIf you don't get in touch with your lender, your lender will try to contact you by mail and phone soon after you stop making payments. It is very important that you respond to mail and phone calls offering help. If your lender doesn't hear from you, they will have to start legal action leading to foreclosure. This will greatly increase the cost to bring your loan current.Information for families with FHA loansThe FHA provides many alternatives and ways for borrowers to get help. These may include mortgage modifications (changes), special forbearances (allowances), and other actions you can take to avoid foreclosure.FHA works closely with customers who have FHA-insured loans. Do you feel your lender is not responding to your questions? Do you need help contacting your lender? The FHA is ready to help! Contact us at (800) CALL-FHA. 

2. Talk to a housing counselor - (Top) If you don't feel comfortable talking with your lender, you should immediately contact a housing counseling agency and make an appointment with a counselor. Most FHA counselors are free or cost very little. A counselor can help you:

    • Review your financial situation, determine what options are available to you, and negotiate with your lender
    • Learn which of the various workout arrangements lenders consider makes the most sense for you and your family, based on your circumstances
    • Call the lender with you or on your behalf to discuss a workout plan
    • Protect you from future credit problems before you get too far behind on mortgage payments
    • Give you information on services and programs in your area that provide financial, legal, medical or other assistance

A good counselor will help you create a monthly budget plan to ensure you meet all your monthly expenses, including your mortgage payment. Your personal financial plan will clearly show how much money you have available to make the mortgage payment. This analysis will help you and your lender determine whether a reduced or delayed payment schedule could help you.To find out more about HUD-approved housing counseling agencies and their services, please call toll free (800) 569-4287 on weekdays between 9:00 a.m. and 5:00 p.m. Eastern Standard Time (6:00 a.m. to 2:00 p.m. Pacific Time). The same number can give you an automated referral to the three housing counseling agencies located closest to you.Many of these local housing counseling agencies are connected with national and regional housing counseling intermediaries (mediators). The website for HUD-approved National and Regional Housing Counseling Intermediaries describes the full range of assistance offered and provides maps showing their member's locations. 

3. Prioritize your debts (rank them by importance) - (Top) You will need a new, tightened budget if you lose a job. Prioritize your bills and pay those most necessary for your family: food, utilities and shelter.Failing to pay any of your debts can seriously affect your credit rating, but if you stop making your mortgage payments you could lose your house. Try these suggestions to keep your home:

    • Whenever possible, use any income available after paying for food and utilities to pay your monthly mortgage payments.
    • If your employment income has stopped or been reduced, first consider getting rid of or cutting back on other expenses (such as dining out, entertainment, cable, or even telephone services).
    • If you still do not have enough income, consider cashing out other financial resources like stocks, savings accounts, or personal property that may have value like a boat or a second car.
    • Take any responsible action that will save cash.

Besides speaking with your lender, you may want to contact a nonprofit consumer credit counseling agency that specializes in helping restructure credit payments. Credit counselors can often reduce your monthly bills by negotiating lower payments or long-term payment plans with your creditors. Trustworthy credit counseling agencies provide their services free of charge or for a small monthly fee tied to a repayment plan. Beware of credit counseling agencies that offer counseling for a large upfront fee or donation.For consumer debt advice, contact www.debtadvice.org/

When you call a credit counseling agency, they will ask you to provide current information about your income and expenses. Make sure you ask if the agency has a charge before you sign any documents!

Preserve your good credit

Do not underestimate (misjudge) how important it is to keep your good credit. Your future ability to purchase items, rent or buy a home, and do other things often requires a credit check. Consumer credit agencies and your lender can help you explore solutions to keep your credit rating from getting blemished.Maintaining good credit is even important for job hunters. When you apply for a job, the employer probably will check your credit report to determine whether:

    • You have been sued
    • You have filed for bankruptcy
    • You have trouble paying your bills

4. Explore loan workout solutions with your lender - (Top)First and foremost, if you can keep your mortgage current, do so.
But if you find you are unable to make your mortgage payments, you might qualify for a loan workout option. Check with your lender to see which option may be available. Some options may not apply to your loan if it is not insured by FHA.

If your problem is temporary - call your lender to discuss these possibilities:

    • Reinstatement: Your lender is always willing to discuss accepting the total amount owed in a lump sum by a specific date. Forbearance may accompany this option.
    • Forbearance: Your lender may allow you to reduce or suspend payments for a short period of time and then agree to another option to bring your loan current. A forbearance option is often combined with a reinstatement when you know you will have enough money to bring the account current at a specific time. The money might come from a hiring bonus, investment, insurance settlement, or tax refund.
    • Repayment plan: You may be able to get an agreement to resume making your regular monthly payments, plus a portion of the past due payments each month until you are caught up.
If it appears that your situation is long-term or will permanently affect your ability to bring your account current - call your lender to discuss options:
    • Mortgage modification: If you can make payments on your loan, but don't have enough money to bring your account current or you can't afford your current payment, your lender may be able to change the terms of your original loan to make the payments more affordable. Your loan could be permanently changed in one or more of the following ways:
      • Adding the missed payments to the existing loan balance.
      • Changing the interest rate, including making an adjustable rate into a fixed rate.
      • Extending the number of years you have to repay.
    • Partial Claim: If your mortgage is insured, your lender might help you get a one-time interest-free loan from your mortgage guarantor to bring your account current. You may be allowed to wait several years before repaying this loan. You qualify for an FHA partial claim if:
      • Your loan is between 4 and 12 months delinquen
      • You are able to begin making full mortgage payments again

When your lender files a partial claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must sign a promissory note, and a lien will be placed on your property until the promissory note is paid in full.The promissory note is interest-free and is due when you pay off the first mortgage or when you sell the property. 

If keeping your home is not an option - call your lender to discuss these possibilities: - (Top)

    • Sale: If you can no longer afford your home, your lender will usually give you a specific amount of time to find a purchaser and pay off the total amount owed. You will be expected to use the services of a real estate professional who can aggressively market the property.
    • Pre-foreclosure sale or short payoff: If you can't sell the property for the full amount of the loan, your lender may accept less than the amount owed. Financial help may also be available to pay other lien holders and/or help towards some moving costs. You may qualify if:
      • The loan is at least 2 months delinquent
      • You (or your real estate professional) can sell the house within 3 to 5 months
      • A new appraisal (obtained by your lender) shows that the value of your home meets HUD program guidelines
    • Assumption: A qualified buyer may be allowed to take over your mortgage, even if your original loan documents state that it is non-assumable.
    • Deed-in-lieu of foreclosure: As a last resort, you "give back" your property and the debt is forgiven. This will not save your house, but it is less damaging to your credit rating. This option might sound like the easiest way out, but it has limitations:
      • You usually have to try to sell the home for its fair market value for at least 90 days before the lender will consider this option
      • This option may not be available if you have other liens, suc h as other creditor judgments, second mortgages, and IRS or state tax liens
Resources for finding a real estate agent and selling your home If you need to sell your home, you'll have to answer many questions. You'll need to find how much your house is actually worth, and you'll have to find a real estate agent you are comfortable with. The following resources may help:

If you have an FHA-insured loan and your lender is not responsiveYour lender has to follow FHA servicing guidelines and regulations for FHA-insured loans. If your lender is not cooperative, contact FHA's National Servicing Center at toll free (888) 297-8685 or via email hsg-lossmit@hud.gov. HUD does not oversee VA or conventional loans. 

Beware of predatory lending schemes - (Top) Most mortgage lenders are trustworthy and provide a valuable service by allowing families to own a home without saving enough money to buy it outright. But dishonest or "predatory" lenders do exist and engage in lending practices that increase the chances that a borrower will lose a home to foreclosure. Beware especially of those who make high risk second mortgages. Other abusive practices include:

  • Making a mortgage loan to an individual who does not have the income to repay it
  • Charging excessive interest, points and fees
  • Repeatedly refinancing a loan without providing any real value to the borrower

Borrowers facing unemployment and/or foreclosure are often targets of predatory lenders because they are desperate to find any "solution".

Homeowners receive many refinance offers in the mail saying they are "pre-approved" for credit based on the equity in their homes. Borrowing against your house may seem attractive when you are struggling to pay your mortgage and other bills. But stop and think about this: if you can't make your current payments, increasing your debt will make it harder to keep your home, even if you get some temporary cash.

Beware of scams

  • Equity skimming: In this type of scam a "buyer" approaches you offering to repay the mortgage or sell the property if you sign over the deed and move out - usually leaving you with the debt and no house. Signing over your deed does not necessarily relieve you of the responsibility of paying the loan.
  • Phony counseling agencies: charging for counseling that is often free of charge. If you have any doubt about paying for such services, call a HUD-approved foreclosure housing counseling agency toll free at (800) 569-4287 or TDD (800) 877-8339 before you pay anyone or sign anything.
  • Do not sign anything you do not understand. It is your right and duty to ask questions
  • Information is your best defense against becoming a victim of predatory lending, especially for a desperate homeowner

Where to report suspected predatory lending

Homeowners can either visit the Stop Mortgage Fraud website or call toll free (800) 348-3931 to get information on what steps to take to file a complaint. Homeowners who call will also receive a booklet containing information found on the website.For more information about predatory lending go to:

Common Questions - (Top)

What happens when I miss my mortgage payments?
What should I do?
Who is my lender? How do I make contact?
I don't remember what type of mortgage I have.
Do I need to keep living in my house to qualify for assistance?
My employer has already announced layoffs
What are the key points to remember?
What precautions can I take?
Will I be responsible for any out-of-pocket expenses?  

What happens when I miss my mortgage payments? - (Top)Foreclosure may occur. This means your lender can legally repossess (take over) your home. When this happens, you must move out of your house. If your property is worth less than the total amount you owe on your mortgage loan, a deficiency judgment could be pursued, meaning you would not only lose your home, you also would owe HUD money.Both foreclosures and deficiency judgments could seriously affect your ability to qualify for credit in the future. So you should avoid foreclosure if at all possible.  

What should I do? - (Top)

  • Do not ignore letters from your lender. If you are having problems making your payments, call or write to your lender's loss mitigation department immediately. Explain your situation. Be prepared to provide financial information, such as you-r monthly income and expenses. Without this information, they may not be able to help.
  • Stay in your home for now. You may not qualify for assistance if you abandon your property.
  • Contact a HUD-approved foreclosure housing counseling agency. Call toll free 1-800-569-4287 or TDD (800) 877-8339 for the housing counseling agency nearest you. These agencies are valuable resources. They have information on services and programs offered by government agencies and private and community organizations that might be able to help you. The housing counseling agency may also offer credit counseling. These services are usually free of charge.

Who is my lender?

How do I make contact?- (Top)Look at your monthly mortgage coupons or billing statements for the lender's name and contact information. 

I don't remember what type of mortgage I have. How can I find this information? - (Top)Look on the original mortgage documents or call your mortgage lender. 

Do I need to keep living in my house to qualify for assistance? - (Top)Usually yes, but call your lender to discuss your specific circumstances and get advice on options that may be available. 

My employer has already announced layoffs in the coming month. What can I do now? - (Top)You have started learning about available options here. Now, figure out if a layoff will make it hard for your family to make your mortgage payments. If so, consider other resources you have to pay your mortgage. Review your spending habits and see where you can reduce spending. If you have a lot of other debt, consider contacting a nonprofit, consumer credit counseling agency. Take advantage of any help your employer offers. If you still believe you will have trouble making your mortgage payments, contact your lender right away. 

What are the key points to remember? - (Top)

1.       Don't lose your home and damage your credit history

2.       Call or write your mortgage lender immediately and be honest about your financial situation

3.       Stay in your home to make sure you qualify for assistance

4.       Arrange an appointment with a HUD-approved housing counselor to explore your options toll free at (800) 569-4287 or TDD (800) 877-8339

5.       Cooperate with the counselor or lender trying to help you

6.       Explore every alternative to keep your home

7.       Beware of scams

8.       Never sign anything you don't understand. And remember that signing over the deed to someone else does not necessarily relieve you of your loan obligation

9.       Act now. Delaying can't help. If you do nothing, you will lose your home and your good credit rating!  

What precautions can I take? - (Top)These precautions can help you avoid being "taken" by a scam artist:

  • Don't sign any papers you don't fully understand.
  • Make sure you get all "promises" in writing.
  • Beware of any sales contract that assumes the loan where you are not formally released from liability (responsibility) for your mortgage debt.
  • Check with a lawyer or your mortgage company before entering into any deal involving your home.

If you're selling the house yourself to avoid foreclosure, check to see if there are any complaints against the prospective buyer. You can contact your state's Attorney General, the State Real Estate Commission, or the local District Attorney's Consumer Fraud Unit for this type of information. 

Will I be responsible for any out-of-pocket expenses if I am approved for a workout option? - (Top)You may have to pay expenses such as recording fees for a loan modification. Because every situation is different, contact your lender for more information. But, if a lender has no contact with you and has to start foreclosure, you may have to pay very high legal fees. To avoid this, call your lender as soon as you realize you might have trouble.

Mortgage lendersThe mortgage lenders listed below have voluntarily joined the federal government to assist homeowners who are concerned about the future or have suffered due to recent changes in the economy. If your lender is listed here, you can help protect your home by contacting them immediately!

Lender

Phone #1 Phone #2
Bank of America (800) 846-2222 (716) 635-2264
Chase Home Finance (800) 848-9136  
Chase Home Finance (800) 526-0072
ext. 533		 (800) 527-3040
CitiMortgage (800) 926-9783  
Countrywide (800) 763-1255 (800) 669-4576
HSBC Mortgage Corporation (800) 338-6441 (888) 648-3124
Irwin Mortgage Corporation (888) 444-6446  
James B. Nutter & Company (800) 315-7334  
Midland Mortgage (800) 552-3000 (800) 654-4566
Mortgage Service (800) 449-8767  
National City Mortgage (800) 367-9305  
Principal Residential Mortgage, Inc. (800) 367-6448 (800) 962-4450
Wells Fargo Mortgage (800) 766-0987  
Wendover Financial Services Corporation (888) 934-1081 (800) 436-1022
Washington Mutual Home Loans, Inc. (866) 926-8937 (800) 254-3677
This information is provide for you by the joint efforts of HUD/FHA, Department of Veterans Affairs, Department of Labor, Fannie Mae, Freddie Mac, members of the Mortgage Industry-at-large, and other industry participants.

Servicemembers Civil Relief Act (SCRA) Common Questions - (Top)

Who is eligible?
Am I entitled to debt payment relief?
Is the interest rate limitation automatic?
Am I eligible even if I can afford to pay my mortgage at a higher interest rate?
What if I can't afford to pay my mortgage even at the lower rate?
Am I protected against foreclosure?
What information do I need to provide to my lender?
Will my payments change later?
Will I need to pay back the interest rate "subsidy" at a later date?
How long does the benefit last? Does the period begin and end with my tour of duty?
How can I learn more about relief available to active duty military personnel?Reservists, guardsmen and other military personnel can find answers to questions about mortgage payment relief and protection from foreclosure provided by the Servicemembers Civil Relief Act of 2003 (formerly The Soldiers' and Sailors' Civil Relief Act of 1940). 

Who is eligible? - (Top)The Act applies to active duty military personnel who had a mortgage obligation before enlistment or before being ordered to active duty. This includes:

  • Members of the Army, Navy, Marine Corps, Air Force, Coast Guard
  • Commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration engaged in active service
  • Reservists ordered to report for military service
  • People ordered to report for induction (training) under the Military Selective Service Act
  • Guardsmen called to active service for more than 30 consecutive days.

In limited situations, dependents of servicemembers are also entitled to protections. 

Am I entitled to debt payment relief? - (Top)The Act limits interest that may be charged on mortgages taken out by a servicemember (including debts incurred jointly with a spouse) before he or she entered into active military service. At your request, lenders must reduce the interest rate to no more than 6% per year during the period of active military service and recalculate your payments to reflect the lower rate. This provision applies to both conventional and government-insured mortgages. 

Is the interest rate limitation automatic? - (Top)No. To ask for this temporary interest rate reduction, you must submit a written request to your mortgage lender and include a copy of your military orders. The request may be submitted as soon as the orders are issued, but no later than 180 days after the date of your release from active duty military service. 

Am I eligible even if I can afford to pay my mortgage at a higher interest rate? - (Top)If a mortgage lender believes that military service has not affected your ability to repay your mortgage, they have the right to ask a court to grant relief from the interest rate reduction. This is does not happen very often. 

What if I can't afford to pay my mortgage even at the lower rate?- (Top)Your mortgage lender may let you stop paying the principal amount due on your loan during active duty service. Lenders are not required to do this but they generally try to work with servicemembers to keep them in their homes. You will still owe this amount, but will not have to repay it until after you complete active duty service.Most lenders also have other programs to assist borrowers who can't make their mortgage payments. If you or your spouse finds yourself in this position at any time before or after active duty service, contact your lender immediately and ask about loss mitigation options. If you have an FHA-insured loan and are having difficulty making mortgage payments, you may also be eligible for special forbearance and other loss mitigation options. 

Am I protected against foreclosure? - (Top)Mortgage lenders may not foreclose while you are on active duty or within 90 days after military service without court approval., A lender would be required to show in court that your ability to repay the debt was not affected by your military service. 

What information do I need to provide to my lender? - (Top)When you or your representative contacts your mortgage lender, you should provide the following information:

  • Notice that you have been called to active duty
  • A copy of the orders from the military notifying you of your activation
  • Your FHA case number
  • Evidence that the debt precedes your activation date

HUD has reminded FHA lenders of their obligation to follow the SCRA. When notified that a borrower is on active military duty, an FHA lender must inform the borrower or representative of the adjusted payment amount due, provide adjusted coupons or billings, and ensure adjusted payments are not considered insufficient payments. 

Will my payments change later?  

Will I need to pay back the interest rate "subsidy" at a later date? - (Top)The change in interest rate is not a subsidy. Interest in excess of 6% per year that would otherwise have been charged is forgiven. However, the reduction in the interest rate and monthly payment amount only applies during the period of active duty. Once the period of active military service ends, the interest rate will revert back to the original interest rate, and payments will be recalculated accordingly. 

How long does the benefit last? Does the period begin and end with my tour of duty? - (Top)Interest rate reductions are only for the period of active military service. Other benefits, such as postponement (delaying) of monthly principal payments on the loan and restrictions on foreclosure, may begin immediately upon assignment to active military service and end on the third month following the term of active duty assignment. 

How can I learn more about relief available to active duty military personnel? - (Top)Servicemembers who have questions about the SCRA or the protections they may be entitled to, can contact their unit judge advocate or installation legal assistance officer. Dependents of servicemembers can also contact or visit local military legal assistance offices where they live. A military legal assistance office locator for each branch of the armed forces is available at www.legalassistance.law.af.mil/content/locator.php 

 

 

 

 

Worried About Foreclosure?

If you feel like you may be in danger of facing foreclosure, the time to call 888-995-HOPE is now - Homeowner's HOPE™, a counseling service provided by the Homeownership Preservation Foundation, can work with you to find a solution. The sooner you call, the sooner you can regain your peace of mind. Remember, you're not alone. Millions of people across the United States have trouble with their mortgage every year. Since 2002, our counselors have provided advice and education to more than 100,000 homeowners.

We Can Help

Through our 888-995-HOPE hotline, the Homeownership Preservation Foundation has a single mission: to help homeowners avoid foreclosure. We are an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners.

The help we offer is free.

Our counselors are experts in foreclosure prevention and trained to set up a plan of action designed just for you and your situation. When you talk to us, you won't be judged and you won't pay a dime. That's because we don't just offer general advice - we help you take action. Counselors will arm you with education and support that assists you in overcoming immediate financial issues...at no cost to you.

Call or start an online counseling session now. http://www.995hope.org/

Possible Outcomes

Everyone's situation is different and many factors determine what kind of help is available to you. Keep in mind that selling your home might be the best possible outcome for your situation.

The counselors at 888-995-HOPE provide guidance and education, but the outcome for your home varies based on:

·                       Whether or not you're behind on your mortgage today. Calling sooner means more options are available to you; you can call us anytime in the process. ·                       If you are affected by a short or long-term issue. Don't worry, we can guide you either way. ·                       The type of mortgage that you have and the rules that pertain to it. Mortgage servicers have a wide variety of outcomes that may be available to you.

No matter what your situation, we can help. Don't wait to call.

  

Making the Call

What to expect

First and foremost, expect to speak with a respectful, non-judgmental counselor who wants to help you. After an introduction and an explanation of your counselor's role in the process, you'll be asked about the reason you called. When it comes to discussing finances revolving around foreclosure,  complete honesty is the best policy. The more focused a picture we have of your financial situation, the better equipped we are to help you deal with it. After your counselor accurately restates your challenge, you'll lay out goals together, and you'll receive recommendations on how to accomplish those objectives.

What to have ready

If possible, try to have a list of the major bills you pay every month at hand when you call. Chief among these should be your mortgage payment statement complete with your mortgage loan number. Having these close will help your counselor build an accurate assessment of your financial situation.

Things you should know

Homeowner's HOPE provides free counseling - we do not do refinancing, down payment assistance or provide loans. But we can connect you with local nonprofit resources that provide different kinds of assistance.

Although we have an excellent working relationship with many of the nation's largest mortgage companies, we cannot force a mortgage company to eliminate debt, forgive payments or dictate solutions.

We are here for you 24 hours a day, seven days a week. Most importantly, we want to help. Remember, the sooner you make the courageous decision to call us, the more we can do to help you right your financial ship. 

 The time to call 888-995-HOPE is now - Homeowner's HOPE™,

 --------------------------------------

 Common Myths

MYTH: My mortgage company would rather foreclose on my home than keep me in it.

The mortgage company sustains an average loss of about $58,000 when foreclosure occurs (TowerGroup study). They are in the business of providing mortgages - not owning or selling homes - and would always prefer to keep you in your home. By calling the Homeowner's HOPE Hotline™ at 888-995-HOPE, we'll help you work with your mortgage company to pay back your loan and stay out of foreclosure.

MYTH: Foreclosure is an uncommon problem – I’m all alone in this.

Foreclosure is a challenge faced by millions of Americans every year from all walks of life. Rich, poor, young, old - the list is as diverse as society itself. It's nice to know there's one place you can turn to for caring, non-judgmental advice if you find yourself struggling with your mortgage: 888-995-HOPE. We'll be with you every step of the way.

MYTH: I’ve only missed one payment – I can likely catch up.

The most important thing to remember when playing catch-up with your mortgage is you owe any delinquent payments plus the current month's payment. So, if you're a month behind, you actually owe two payments - last month's and this month's. By calling 888-995-HOPE right away, even before you've missed a payment, you will have more options available to you.

MYTH: I’ve missed too many payments to get help.

There's always time to get help. We can't work miracles, but we can always give expert advice for any situation. That being said, the help we're able to offer is far more constrained if you're eight payments behind than if you're one or two behind. The sooner we can get involved, the better chance you have of avoiding foreclosure.

MYTH: I’m getting many offers of “help” from a variety of different people. Are they all scams?

Because of the public nature of foreclosures, anyone is able to access foreclosure listings on a daily basis. These include the owner's name and address at the very least, and in some states, they could include other sensitive information. Armed with this data, scammers can take advantage of a desperate owner. Here's what to look for to avoid foreclosure scams:

1. Your home's ownership changes hands. A common scam is where a party buys your home, then lets you rent it back. It sounds good at first, but you're losing your property, and your new landlord can now legally kick you out of your home with little to no notice.

2. You're asked to pay something up-front and/or you're asked to stop making mortgage payments. Usually, these scams involve paying large sums of money to some sort of "foreclosure prevtention service." These services offer to do what our counselors do: counseling, a budget and approaching the mortgage company to consider a payment plan. But the services don't do always do this work thoroughly, or follow through at all. The most important thing to remember when it comes to any foreclosure service is this: Foreclosure advice and direction should always be free.

3. You're under pressure to act immediately. Some will prey on the stress and anxiety surrounding the foreclosure process by convincing owners to sign things they don't understand. Don't sign anything without either first talking to an attorney, your mortgage company or a nonprofit foreclosure prevention organization like the Homeownership Preservation Foundation.

MYTH: It’s impossible to stay in my house after foreclosure proceedings begin.

Contrary to what you might think, there are still options available to you after the foreclosure process has started. The sooner you call us, the more tools we'll have to help you fix your situation.

 

 

 

OTHER  FORECLOSURE RESOURCES:

http://www.federalreserveeducation.org/pfed/foreclosure/

 

http://www.ag.state.oh.us/citizen/pubs/consumer/PredatoryLendin_tips.pdf 

http://www.ohiohome.org/refinance/default.htm

http://www.stopforeclosureinamerica.com/

http://www.hudclips.org/sub_nonhud/cgi/pdfforms/pa426h.pdf

Buying Foreclosures "Not For The Novice"
Broderick Perkins
05/22/2007

On a scale of fear where 1 is a sort of "pshaw" and 10 is your life flashing before you, the fear of buying foreclosures should be right up there with the out-of-body experience.

Be afraid. Be very afraid.

No doubt a foreclosure purchase can be a good way to save money on buying a home or investing in real estate, but if you don't know what you are doing the ordeal can smother you under a shroud of financial losses.

There's simply too much risk for most financial portfolios and there are easier ways to make a buck in real estate.

The American Homeowners Foundation (AHA) says with more and more homes facing foreclosure, some home buyers are considering acquiring foreclosures -- or they are being led by the nose to the "deals."

RealtyTrac, an online foreclosure marketplace said April's 147,708 foreclosure filings -- default notices, auction sale notices and bank repossessions -- represented a rate of one foreclosure for every 783 U.S. households, up 62 percent in the past year.

"Whenever the real estate market shifts, there's always this tendency to say, 'Hey. It's a good time to buy,' perhaps to cash in on those who maybe didn't understand what that really means, to cash in on the shifting market, to cash in on a returning or new trend," says Newport Beach, CA-based consultant Danielle Babb. Babb, with Corona, CA-based mortgage banker and investor William Nazur, is co-author of the yet-to-be-published "Finding Foreclosures: An Insider's Guide to Cashing in on This Hidden Market" (Entrepreneur Pr, $21.95).

"Foreclosures are already shaping up to be the next 'good time'," says Babb.

That's provided you have the time.

AHA president Bruce Hahn says the foreclosure market is dominated by real estate professionals who specialize in the market because it's a full time job, not an on-the-job-training opportunity.

"Buying a home at a foreclosure sale requires a lot of work and due diligence and is fraught with risks. You can end up spending a lot of time and money doing your homework, only to learn at the last minute the auction was canceled because the borrower filed for bankruptcy protection (which temporarily suspends the auction). Even if the sale proceeds, you may not be the successful bidder,"

Hahn says. Hahn says you should not initially venture into foreclosures without competent assistance, a real estate attorney, investor or other professional familiar with local laws. That point person should also be endowed with ample connections to other savvy professionals you may also need on the way, among them, perhaps, a home inspector, appraiser and real estate agent.

"Establish a relationship in advance," Hahn advises.

Given the many unknowns associated with buying foreclosures, you'll also have to be endowed with the right financial stuff that gives you a tolerance for risk.

"Those who venture into the area should have solid equity positions in their primary residencies, they shouldn't be up to their eyeballs in credit card or revolving debt, they should be able to afford to take a little risk and they should be considering this an investment; perhaps diverting some of their investment dollars to this endeavor as a replacement for others," says Babb.

After the necessary prerequisites, the approach to buying foreclosures is a timing game. When you buy is as important as what you buy.

Preforeclosure

The period after a homeowner goes into default (misses one payment or more) and the lender files a public default notice to that affect (Notice of Default or Lis Pendens) is the period when the foreclosure process begins.

You can find the notices in your local public records office or, for a fee, get them, with varying levels of detail, from on- and offline firms that track the data.

This is one of the best times to buy foreclosure properties, experts say, because you'll have more time to get a comparable market analysis, research the title and have the home inspected.

It's also a time when the seller may be most accommodating, especially if he or she can walk away with something to show for any equity and if he or she can avoid further ruining his or her credit standing, says Babb.

During preforeclosure, the home likely isn't up for sale, so you'll avoid competition that comes with listed homes. That means, relatively speaking, there's a greater chance you can offer a price that's less than market value but more than the amount owed the bank.

"People should know that foreclosures are not always in the best of shape and they should always hire an inspector who is very detailed that will give them not only the list of items that needs to be fixed, but bids to fix it (or at least a contractor that can do that). Repairs, as well as real estate agency fees (if you aren't selling by owner, which is what I would recommend doing to avoid the fees) are all going to come out of the purchaser's bottom line and need to be considered.

Hahn suggests, whenever possible, selecting homes with substantial equity. That's often evidenced by the owners' tenure.

"Normally only consider houses owned by people who have lived there for a minimum of two years. However, appreciation stopped in most areas two years ago, and in many areas prices have dropped since then. Make it four years in this market. The longer someone has lived in a home, the more equity will be built in, even if they made interest-only payments," Hahn said.

Auction

The next phrase, the lender's auction, can represent the highest potential return, but, wouldn't you know it, also represents the greatest potential for risk.

"We don't recommend waiting until the auction. Usually bigger investors or institutions will buy these homes and the equity position is lower," says Babb.

Foreclosure auctions vary from state to state and may be held on the courthouse steps, in a county office or at the foreclosed home.

Unless you met the home in its preforeclosure stage you can't inspect it, you won't have time to run comparables or do a title search, but you'll have to pay in cash, usually with a cashier's check.

Auctions typically attract hard core investors looking to flip the property (sell within a short period for a profit) and others who've been around the foreclosure block a few times.

If you buy and things get nasty, you may have to evict residents reluctant to leave their lost home. That gives them plenty of time to trash the place or otherwise strip it for their own financial gain.

"Even if the foreclosed-upon family took care of the property, which is unlikely; the property probably has not been lived in for some time," said Dane Hahn broker/owner Exit 11 Real Estate in Stratham, NH.  

"Expect the (homes) to be really dirty, maybe without appliances (even without toilets and sinks), probably without acceptable carpets, and in Northern states, showing the damages of ice and water. It's very easy to get swept-up in the potential future profits of a flip and to ignore the out-of-pocket expenses required to make the property whole," Dane Hahn added.

Real Estate Owned (REO)

Banks repossess homes that aren't auctioned off, say if the highest offer is less than the homeowner owes the lender.

Banks aren't in the business of holding and selling homes, but don't expect to land an REO for a song.  

"When banks offer the property for sale, they are not necessarily pricing the property fairly. Often, they are trying to get top dollar based on what was owed, not what's based on a fair appraisal that takes condition and location into account. Just because it's bank-owned, don't expect a bargain," said Dane Hahn.

At least there's time to arrange for an inspection and a title search, removing some of the risk from the cost.

Babb says no matter what strategy you take, there's an inherent risk in the current market that property values will decline.

"It is possible that you could be in an upside down position even on a foreclosure,which is why doing real comparative analyses and knowing your equityposition up front is absolutely crucial in this market. Remember that excessive foreclosures in an area can reduce property value, so it doesn't hurt to also check and make sure that a lot of the neighbors aren't in notice of default status, Babb said.

Exit Strategy

Then there's the exit strategy, which you'll have to consider at the onset of your decision to buy a foreclosure.

Why are you buying the foreclosed property? As your primary residence? To flip? As a rental?

"You basically have to know a little bit about every aspect of investing to include, contracts, financing, negotiating, acquiring, rehabbing and distributing these properties," said Richard James, owner/investor of New Home Investment Group in Lorton, VA.

"Distribution is the key in any real estate investment. You must have a good exit strategy. In the meantime, you must be prepared for some holding costs. It's a lot to juggle for a seasoned investor. A novice would really be gambling. Foreclosures aren't for the novice," James added.

   We sincerely hope this information has been useful.

IF we can be of any assistance please don't hesitate to call us.

       Jim Price, Broker     

                            (419)738-2422