Home Ownership in Tough TimesYour Guide to Avoiding Foreclosure

Katrina F. BoyerConsumer Group Relations CoordinatorDepartment of Banking and Securities

717.214.55651.800.PA.BANKS (1.800.722.2657)

10/24/2012

Homeownership in Tough Times

Today we will discuss:

Essential steps in protecting home ownershipOther options – if you simply cannot maintain

home ownershipResources for getting helpCommon scams and ways to avoid themTips and resources to avoiding financial disasters

Homeownership in Tough Times

The American Dream?

Homeownership in Tough Times

Financial crisis hit…What are some causes of default or eminent default?

Job LossHealth DeterioratesEmergency Home RepairsDeathDivorceUnderemployment

Homeownership in Tough Times

Step 1: Stay in Your Home!

Now what?

Homeownership in Tough Times

Step 2:Talk to your lender –

Be prepared to talk about: Your individual circumstances How long you expect to experience the hardship Any resources you may possess

Keep track of all conversations – for instance, a notebook with folders

for any and all documents.

Homeownership in Tough Times

MHA“Making Home Affordable”

HAMP“Home Affordable Modification Program”

HARP“Home Affordability Refinance Program”

Loan Modification

DTI“Debt to Income”

Underwater

BPO“Brokers Price Opinion”

LTV“Loan to Value”Fair Market

Value

HAFA“Home Affordable

Foreclosure Alternatives program”

Acronyms and Jargon…

Homeownership in Tough Times

Step 3

Seek Help –

The Pennsylvania Department of Banking and Securities’ Consumer Services

staff may be able to offer guidance:

1.800.PA.BANKS (1.800.722.2657)

Talk to you about your situation and what options may be suitable

Contact the loan servicer on the your behalfMediate between the you and the servicerHelp you find a certified housing counselor in your community

Homeownership in Tough Times

Housing Counselors can be a great resource!

Find a local certified housing counselor at:

Pennsylvania Housing Finance Agency 1.800.342.4287 or www.phfa.org

U.S. Department of Housing and Urban Development (HUD) 1.800.869.4287 or www.hud.gov

Homeownership in Tough Times

The U.S. Department of Treasury launched the Making Home Affordable Program

that may help certain homeowners avoid foreclosure.

www.makinghomeaffordable.gov

The website is designed to help individuals find out if they may qualify for the federal loan modification program.

There is even an interactive tool that can help you determine your eligibility.

Homeownership in Tough Times

No access to Internet?

Get around-the-clock help from housing experts by phone

1.888.995.HOPE (4673)

Free comprehensive foreclosure assistance is always available – in more than 160 languages

Try to have your financial documents close by – things like mortgage statements, pay stubs, tax returns, bank statements, utility bills, credit card information, savings and

other assets, and a letter describing your circumstances.

Homeownership in Tough Times

Just a few programs that may be available…

Federally sponsored loan modification like HAMP, HARP, etc…

“In house” modificationRepayment planLocal assistance programs through city or county

resources

There are many other programs offered, but if you do not ask and seek out the information, you will get nothing.

Homeownership in Tough Times

BEWARE OF SCAMS!

People who are delinquent on mortgage payments are prime targets for unscrupulous individuals that WILL try to take advantage of them.

Be very cautious when dealing with any individual, check them out using your own resources, trust no one until you have done your homework.

Homeownership in Tough Times

Watch out for:

The offer sounds “too good to be true”

Upfront feesAnyone who offers a guaranteeForensic loan auditsRent to own or lease/buy back offers

If you believe an offer may be a scam or something just does not “feel right,” the PA Department of Banking and Securities’ Consumer Services staff may be able to help.

Contact us at 1.800.PA.BANKS (1.800.722.2657)

Homeownership in Tough Times

Other Options:

Deed in Lieu of ForeclosureShort SaleBankruptcyCash for KeysHome Affordable Foreclosure

Alternatives ProgramHEMAP

Before you take any of these actions, you may want to contact a qualified housing counselor or attorney with expertise in these kinds of matters.

Homeownership in Tough Times

Be “pro-active”

Tips to Avoiding Financial Disasters

Understand the contract before you signAvoid debtProtect your credit ratingPrioritize your debts

The PA Department of Banking and Securities maintains a website: www.moneysbestfriend.com.

Check it out for a better understanding of many financial issues.

Homeownership in Tough Times

We have covered:

Essential steps in protecting home ownershipResources for getting helpOther options – if you simply cannot maintain home

ownershipCommon scams and ways to avoid themTips and resources to avoiding financial disasters

Homeownership in Tough Times

You can reach one of our Consumer Services Specialists at: 1.800.PA.BANKS (1.800.722.2657)

The phone call is free and so are our services. Sometimes just talking through your circumstances can help you understand your options. Our specialists can help you determine what your next steps might be.

Homeownership in Tough Times

Contact me:

Katrina F. BoyerConsumer Group Relations Coordinator

Pennsylvania Department of Banking and Securities17 N 2nd St, Suite 1300Harrisburg, PA 17101

717.214.5565

1.800.PA.BANKS (1.800.722.2657)