As a Real Estate Broker and Investor with almost 24 years experience, I’ve seen the market change a few times. When times get difficult, it becomes necessary for people to learn how to stop foreclosure. As an REO Broker who works with banks selling their foreclosures, I am very familiar with the pain that homeowners go through when losing a home.
In today’s post, I would like to take a few moments to help you locate some of the best governmental resources to help you avoid or stop foreclosure and get the goverment help you need. Many times, I have found that people simply didn’t know about all the resources available to them until it was too late.
Mortgage Help
The very first place I would recommend anyone go to stop foreclosure fast and start to find any Government help that would be available is the Consumer Financial Protection Board (CFPB). They will the first to tell you (as would I tell you!) There is free foreclosure help. If anyone tries to charge you in advance for help or guarantees that they can stop your foreclosure, they’re not legitimate!
There is free foreclosure help. If anyone tries to charge you in advance for help or guarantees that they can stop your foreclosure, they’re not legitimate.
Consumer Financial Protection Board
In order to start the process to get all the Governmental assistance available, you need to get in touch with a counselor with the Arizona Department of Housing. From there, you can find anything housing related including foreclosure relief.
The Arizona Save Our Home AZ (“SOHAZ”) Program offers Principal Reduction Assistance, Monthly Mortgage Subsidy Assistance for under and unemployed Arizonans and Second Lien Elimination Assistance to qualified Arizona homeowners. The program’s goal is to aid Arizona’s homeowners in avoiding foreclosure by assisting with mortgage affordability (a payment that does not exceed 31 percent of gross income) inclusive of property taxes and Homeowner’s Association (HOA) fees. Your lender’s agreement to participate may be required, since mortgage assistance is provided directly to lenders on the homeowner’s behalf.
Affected by COVID 19? See related article: Mortgage Help For Homeowners Impacted By The Coronavirus
Homeownership Preservation Foundation
The Homeownership Preservation Foundation (995Hope.org) focuses on helping Americans who are struggling with their mortgage payment, overwhelmed with debt, or are victims of scams.
During times of National crisis, it isn’t unusual for scam artists to abound. Working hard to steal your hard earned dollar, so be very leery of “Foreclosure protection” companies that offer promises to stop foreclosure, only to leave you high, dry.. and penniless. when the foreclosure comes.
If a loan modification is necessary, they can also offer post modification counseling. Thanks to the many mortgage relief programs now in place, more homeowners are qualifying for modifications that are helping them stay in their homes. However in many cases, the issues that caused their trouble still exist. After you obtain a mortgage modification from your mortgage investor or servicer, our post-mod coaching is a free, financial education program designed to help you be successful with your loan modification while equipping you with the knowledge needed to make the right financial choices for the long term.
🔉🔊 Listen to A Related KarlBuysHouses Podcast: Covid19 Mortgage Deferral
HUD Counseling Services
Another powerful ally you will want to get in your corner is Housing and Urban Development (HUD). HUD Counselors can assist you in finding resources and training in everything from budgeting, mortgage delinqency and default resolution counseling.
The benefits of this counseling, both pre-purchase, as well as during any potential delinquency can work to help you navigate the particulars of your situation.
NeighborWorks® America
Neighborworks® America is a non-profit that collaborates with a variety of private and government partners to raise awareness about loan-modification scams, help homeowners avoid or mitigate foreclosure through a network of HUD-certified counselors, and work to revitalize distressed communities using a holistic approach.
Through strategic and technical consultation, training and targeted investments, NeighborWorks® helps their member organizations and others make the aspiration of safe homeownerhip real for modest-income residents throughout the nation. Services offered by their network range from development of below-market-rate houses and apartments, to pre-purchase counseling, to foreclosure intervention, to coaching that builds “financial capability.”
Fannie Mae Counselor Search
A HUD-approved housing counselor is an experienced, trained professional who can advise you on preventing foreclosure, buying a home, protecting your credit, and other issues. The U.S. Department of Housing and Urban Development (HUD) sponsors housing counseling agencies throughout the country and counseling is available in many languages.
A housing counselor will:
- Explain what documents you will need to provide to your mortgage company and may be able to contact the mortgage company on your behalf
- Help you make a budget so that you can meet your monthly mortgage payment and other expenses
- Provide information about local resources that may be helpful to you
A housing counselor can talk to you about your situation and help you decide what mortgage options are best for you, whether you are concerned about falling behind on your mortgage or are preparing to buy a home. There is no charge to work with a HUD-approved housing counselor—help is free!
If you have missed any mortgage payments, are about to miss a payment, or if your loan already has been referred to an attorney for foreclosure, a HUD-approved housing counselor can help you assess your circumstances, identify your options and prepare you to talk with your mortgage company.
Find a counselor
The U.S. Department of Housing and Urban Development (HUD) sponsors housing counseling agencies throughout the country and counseling is available in many languages.
You can also call the Homeowners HOPE ™ Hotline 1-888-995-HOPE (4673) to speak with a HUD-certified counselor.
Remember, there is no charge to work with a HUD-approved counseling agency—help is free!
🔉🔊 Listen to Related KarlBuysHouses Podcast: How to Stop A Trustee Sale!
Credit Counseling Agencies (CCCS)
What is CCCS?
CCCS stands for Consumer Credit Counseling Services. Consumer credit counseling service agencies are Internal Revenue Service 501(c)93) nonprofit organizations that will help you find a workable solution to financial problems. Each CCCS agency offers a common set of services, including financial education, budgeting assistance, and Debt Management Plans.
Credit.org was originally founded as a nonprofit credit counseling agency under the umbrella of the National Foundation for Credit Counseling (NFCC). The company has now grown into a leading debt relief and financial education company. Today, with a goal of supplying Americans the help they need to solve their debt problems, credit.org continues to use well-trained, specialized coaches to help consumers answer credit questions and solve credit problems.
What are Debt Management Plans?
Credit.org partners with nonprofit credit counseling agencies to offer Debt Management Plans (DMPs). These plans consolidate a consumer’s unsecured credit and debt payments into one convenient monthly payment. Some of the advantages of having a Debt Management Plan include concessions from your creditors including a reduction in interest rates or elimination of late fees.
- A single monthly payment to all of your creditors
- Reduced total monthly payments
- Lower interest rates
- Personalized budgeting advice
A typical credit card is designed to take 20-30 years to pay off at the minimum monthly payment. DMPs can be paid off in about 4-5 years, eliminating debt much faster than traditional methods.
Even without a DMP, credit counseling clients benefit from a free, confidential session that provides them with a workable budget and expert advice on managing personal finances and reducing debt over time.
National Foundation For Credit Counseling
The National Foundation for Credit Counseling (NFCC) provides free credit counseling for the public who are in overwhelming debt.
Here’s what to expect during a credit counseling session
Credit counseling sessions are convenient and easy. On average, the session takes 30 minutes to an hour to complete. Most of these conversations with a counselor can take place over the phone but some NFCC Member agencies offer online and in-person counseling. Regardless of the format of your session, here’s what you can expect.
- Eliminate late fees and overcharges.
- Stop collection calls
- Lower interest rates regardless of credit score
- Consolidate bills into one smaller monthly payment
- Pay off your debt faster
- Improve your money habits
For more information or to set up an appointment with NFCC, click here.
Stop Foreclosure Guide
This is the first step in getting back on the right foot financially and emotionally so you can regain control over your foreclosure situation. A foreclosure isn’t the end of the world and there are solutions where you can avoid or many times stop a foreclosure. Solutions from working with the bank (as this free guide goes over) or working with real estate solutions companies like ours that purchase houses at fair prices for all cash are all gone over in this FREE guide.
I’ve got a lot of experience in the real estate market when it comes to dealing with banks, and foreclosure. If you are facing a foreclosure, or simply have questions, contact me directly at (520) 403-6227 or click here and tell me about your property!
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