August 20, 2008
- Seattle, Washington
Housing advocates can help homeowners avoid foreclosure
By Connie Thompson
This month local housing advocates will hold two special events to help people avoid foreclosure.
The events will feature HUD-certified mortgage counselors who can also explain your options if you're already at risk of losing your home. Foreclosure rates continue to climb across the country. Here's our local picture, based on the most recent numbers from ReatlyTrac.com: Local mortgage counselors cannot keep up with the calls for help. Solid Ground in Seattle is one of the HUD-approved housing counseling groups you're told to contact if you need help negotiating with your lender. But Counselor Erin Rearden says borrowers shouldn't assume mortgage counselors get special treatment because they don't. "It's pretty difficult," she said. "It can be hard just to get a hold of lenders. We sit on hold for extended periods of time. It can be hard to get past customer service to get to the people that you want to talk to." Rearden says many people wait too long to take action. While most lenders won't talk to you until you've missed a payment, many home owners put off doing anything, hoping they'll find a solution. By the time they go for help, they've amassed too much debt and have no income to support any kind of modified mortgage payment plan. Mortgage counselors also say homeowners are not prepared with the information lenders need in determining whether you're a candidate for loan modification or some other arrangement. "Number one is the budget," said Rearden. "I can't tell you how many people just have no idea of what they spend on their monthly expenses." Lenders also need to know about the terms of your mortgage contract, the interest rates, monthly payments, prepayment penalties, second mortgages, how much you have left on the loan. And they need documentation to verify your income and expenses. Most people don't realize the lenders may not have the final say about whether you can renegotiate your mortgage terms, even if you might qualify. Many lenders and customer service departments are merely servicing your loan for investors. They can't make a decision without consulting with those investors, who may have limited options themselves. So even with the help of a counselor, if you're think you're in trouble, be prepared. Know your monthly budget. Know the key terms of your mortgage. And have a backup plan in the event you have no option but to sell your home. That last point is very important. Solid Ground says for every ten homeowners who contact them for help, fewer than two are able to work something out with their lender, which means they either have to sell, walk away or file bankruptcy. In an effort to help curb the local foreclosure rate, mortgage counselors from ACORN Housing is holding two events to help people avoid that situation. Like Solid Ground, counselors at ACORN Housing talk with lenders and mortgage servicing companies to help work out affordable solutions that allow people to keep their homes. Foreclosure Prevention Assistance: Tuesday July 8, 7p.m. ACORN office 134 SW 153rd Street Burien, WA 98166 (Limited space available for education and help with paperwork) Thursday, July 17, 5 p.m. to 7 p.m. ACORN office 134 SW 153rd Street Burien, WA 98166 Homeowners in need of help can bring paperwork and get assistance from HUD certified mortgage counselors. Town Hall Meeting on Foreclosure: Thursday July 17, 7 p.m. Burien Community Center 425 SW 144th Street Burien, WA 98166-1545 (206) 988-3700 A chance to hear from and speak to local legislators. For more information: Washington ACORN Solid Ground |
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