HARP Refinance Option for Homeowners in San Jose and Sunnyvale

A recent announcement from the “Know Your Options” website (sponsored by Fannie Mae) highlights the Home Affordable Refinance Program, (HARP) as an option for homeowners who are struggling to pay their mortgages.

The announcement includes the example of a retired Air Force officer who bought a home in 2007 in Sacramento, but who was reassigned to the East Coast.   Unable to sell his home in  a sluggish market, the homeowner found a renter, but was still losing about $1,000 a month.

While his original mortgage company wouldn’t refinance because he owed more than the house was worth (known as being “upside down”), he also spoke with a lender who offers the HARP loan, and was able to refinance his mortgage (at a rate that was almost 3% lower), saving about $760 a month.

The release explains that over 400,000 people obtained HARP loans during the first six months of 2012, making up about a third of the 1.5 million homeowners who have used HARP since the program began.

The loan needs to be owned by Fannie Mae or Freddie Mac to qualify for a refinance.  You can see if they own your loan using these two websites:

To read the original announcement, visit: “How Much Could HARP Save You?

You may also find our earlier post about the differences between a modification and a refinance helpful:

Refinance vs. Modification: What are the differences?

Foreclosure Help is a program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.  However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

fair_housing_logo

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager to request this accommodation.

New Analysis of 2009-2011 Census Data: For Wealthiest 7%, Assets Increased 28%, but for Remaining 93%, Assets Decreased 4%

By Sean Coffey, MPA, Program Manager at ForeclosureHelp

A new analysis of Census Data by the Pew Research Center reveals that the wealth gap in the United States continues to grow, and that the “economic recovery” is mostly benefiting wealthy people.

For example, the mean net worth of the eight million households in the upper 7% increased by an estimated 28%, from $2.4 million in 2009 to $3.1 million in 2011.  In comparison, people in the lower 93% (111 million households) saw their mean net worth decrease 4%, from $139,896 in 2009 down to $133,817 in 2011.

This large difference is due mostly to the differences in assets.  For example, for households with a net worth of more than $500,000, 65% of their wealth is from financial holdings like stocks, bonds, and retirement accounts, while only 17% of their wealth is based on their home value.

In contrast, for household with a net worth of less than $500,000, half of their net worth is from their home, and only 33% is from financial holdings like retirement accounts.

The analysis also examined the time period from 2005 to 2009 (when the housing market crashed), and found that mean net worth declined by 12% for “households as a whole but remained unchanged for households with a net worth of $500,000 and over.”   For the over $500,000 group, they had a mean net worth of $1,590,075 in 2005; $1,585,441 in 2009, and $1,920,956 in 2011.

This data was interesting in light of the work we do at ForeclosureHelp- for many homeowners who live here in San Jose and Sunnyvale and who contact our program, they have already attempted at least once to ask their bank to modify their mortgages.  Unfortunately, modification requests don’t always go smoothly the first time (paperwork gets lost, etc), and many homeowners cite a list of reasons they don’t want to apply again (it’s been referred to as “modification fatigue”).

However, the analysis above clearly demonstrates that a house is the largest asset for most Americans, and that’s why we encourage homeowners to meet with one of our housing counselors who is certified in foreclosure prevention counseling.

The counselors know the programs like HAMP, HARP, or Keep Your Home California, and can work with you to understand your eligibility for these programs and to submit a modification request- even if you’ve asked for a modification before and were unsuccessful.

For more reasons working with a housing counselor makes sense, visit our earlier blog post:  Five Reasons Working With A Housing Counselor is Better Than “Going Alone”

En Espanol: ¿Por Qué Trabajar Con Un Consejero de Casa?

This post has also been popular with our blog visitors: Helpful Resources if You’re Facing Foreclosure By Foreclosure Help SCC

To read the full Pew analysis, visit: A Rise in Wealth for the Wealthy; Declines for the Lower 93%

Foreclosure Help is a program funded by the city of San Jose through a HUD Community Development Block Grant and the city of Sunnyvale, and we can directly assist homeowners  and tenants in San Jose and Sunnyvale who are facing foreclosure.  However, we are unable to assist homeowners/former homeowners in other cities and states.  If you need housing counseling, we suggest using the interactive map on HUD’s website.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose through a HUD Community Development Block Grant and the City of Sunnyvale at (408)-293-6000 or visit us: www.foreclosurehelpscc.org

Our housing counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.Nuestros consejeros puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

fair_housing_logo

FAIR HOUSING AND ANTI-DISCRIMINATION POLICY

It is the policy of ForeclosureHelp not to discriminate against any person because of that person’s race, color, religious creed, sex (gender), sexual orientation, marital status, national origin, ancestry, familial status (households with children under the age of 18), source of income, disability, medical condition or age. Color or “ethnic group identification” means the possession of the racial, cultural or linguistic characteristics common to a racial, cultural or ethnic group, or the country or ethnic group from which a person or his or her forebears originated. As required by law, we agree to take the affirmative steps needed to further fair housing.

ForeclosureHelp will consider any and all requests for reasonable accommodation in the application of its rules, policies, practices, and services, and in the use of its physical structures, in accordance with the requirements of state and federal laws. You can ask ForeclosureHelp to consider any reasonable accommodation you may have. Please consult with the Program Manager to request this accommodation.

101 Banks and Servicers are now participating in Keep Your Home California. Learn more about how these 4 programs can help:

1) Catch up your late mortgage payments;
2) Pay your mortgage while you’re unemployed;
3) Have your principal reduced;
4) Receive money to help with your transition out of your home:

http://keepyourhomecalifornia.org/

Another Possible Loan Modification Scam: They’re Alive and Well in California in January 2013

District Attorney cracks down on Loan Modificatoin Scams

By Sean Coffey, Program Manager, Foreclosure Help

According to a January 25, 2013 article in the Santa Maria Times, (DA’s office investigating loan modification/foreclosure fraud case) a fraud case involving an alleged loan modification/foreclosure consultant in the Santa Maria area is being investigated by the Santa Barbara County District Attorney’s Office.

According to the article, the organization may have operated under the names Hermandad Hispanic Group, Crown Point Education, and America Asset Management.

If you are a homeowner who believes you have been taken advantage of by this company, the District Attorney’s Office is requesting that you contact District Attorney Investigator Jennifer Glimp at 737-7871. For Spanish speaking homeowners, contact District Attorney Investigative Assistant Maria Chavez at 346-7519.

If the allegations are true, this will be yet another sad case of homeowners who believed something that was too good to be true.   When homeowners ask us about loan modification companies, we remind them that it is illegal in California to charge an upfront fee for a loan modification.

Red lights for homeowners to look out for include:

  • A company that is being pushy and trying to sell their services
  • A person who promises to stop a foreclosure
  • Anybody who guarantees a loan modification

For homeowners who have been illegally charged an upfront fee here in Santa Clara County, Foreclosure Help will make referrals to the Santa Clara County District Attorney’s office (Real Estate Fraud Division) and we also will refer the homeowners to the Fair Housing Law Project at the Law Foundation of Silicon Valley who can work with homeowners and pro bono attorneys to seek restitution.

As a reminder, if it sounds too good to be true, it probably is.  There is absolutely nobody who can truthfully promise or guarantee you a loan modification.   Your bank or servicer is the only entity that will make the decision about whether or not your loan can or will be modified.  It’s also important to know that your bank or servicer may be limited from granting a modification because of the investor who actually holds your mortgage.

When you stop paying your mortgage payments, the bank or servicer will file a Notice of Default, which is the first step in the foreclosure process.  This Notice of Default is public record (It’s filed at the Santa Clara County Recorder’s office- you can search records by name by clicking on the left side of the screen “official documents” and searching by grantor/grantee name), and so you will likely start receiving LOTS and LOTS of mail, phone calls, visits, etc. from “experts” who want to “help.”   Services like Foreclosureradar.com allow people to obtain contact information (and info about their mortgage) for homeowners in default and then contact them.

If you’re not sure where to turn, we recommend speaking with a HUD approved foreclosure counselor.  They can help you identify your options, discuss programs like Keep Your Home California or HAMP with you and make a plan forward.  The best part is that the counselors don’t have a financial incentive to guide you towards a certain outcome.  This means they can give you a unbiased, clear analysis of your situation and your options to avoid foreclosure.

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.

Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org.

Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Nếu bạn là một sinh hoạt chủ sở hữu nhà ở San Jose hoặc Sunnyvale và đang đấu tranh với nợ nhà, xin vui lòng liên ForeclosureHelpSCC, một chương trình được tài trợ bởi thành phố San Jose và thành phố của Sunnyvale ở (408) -293-6000 hoặc truy cập trang web của chúng tôi: www.foreclosurehelpscc.org.

Nhân viên tư vấn của chúng tôi đã được HUD chấp thuận có thể giúp bạn đánh giá các lựa chọn của bạn, tìm hiểu thêm về các chương trình của liên bang và tiểu bang có thể giúp bạn với các vấn đề thế chấp của bạn, và sẽ giúp bạn tạo ra một kế hoạch phía trước.

Xin lưu ý: Tất cả các nội dung trên Blog ForeclosureHelpSCC được cung cấp thông tin duy nhất và không nên coi là hợp pháp hoặc tư vấn thuế. Nếu bạn có bất cứ câu hỏi , xin vui lòng liên hệ với chúng tôi qua đường dây nóng: (408) -293-6000, hoặc truy cập vào trang của chúng tôi: http://www.foreclosurehelpscc.org hoặc gửi email cho chúng tôi:help@foreclosurehelpscc.org.

Five Important Policy Updates For California Homeowners and Tenants in 2013 Related to Foreclosures, Short Sales, and the Homeowner’s Bill of Rights

New Laws in 2013 for California Homeowners

By Sean Coffey, MPA, Program Manager of ForeclosureHelpSCC

1) Independent Foreclosure Review: The New York Times broke the news on December 31 that the Independent Foreclosure Review may be replaced.  The article explains that regulators and banking officials have been meeting in hopes of designing a less cumbersome, less expensive way of compensating homeowners who were improperly foreclosed on by their banks or servicers.  During the few weeks leading up to the December 31st deadline for the Independent Foreclosure Review, we received an increase in phone calls and google searches which went to our blog pages explaining how to apply for the Independent Foreclosure Review.

However, we were also very concerned about the many shortcomings of the review (read our compilation of media reports at a previous blog posting: “7 Reasons to Postpone the Independent Foreclosure Review”), and so we created a petition on Change.org asking regulators to postpone the deadline until after they had released the results of at least 215,000 cases.   The regulators in charge of the program have not yet released any information about their plans, and we suggest that homeowners and former homeowners continue watching the news, checking our blog, and checking the website for the Independent Foreclosure Review for any updates.

2) Mortgage Debt Forgiveness: Housing Wire reports that the Mortgage Debt Forgiveness Act was extended for another year.  This is an important policy win for homeowners who are struggling with their mortgages because without this extension, debt forgiveness from a modification, short sale, or foreclosure would have been taxed in 2013. For more information, visit our previous blog: Foreclosures in San Jose and Sunnyvale: Three Reasons Time is Not on Your Side

3) Unemployment benefits were also extended as part of the Fiscal Cliff negotiations.  Homeowners in California who are struggling to pay their mortgage should consider applying for the Keep Your Home California Unemployment Mortgage Assistance Program.  More information at our previous blog here: “Unemployment Mortgage Assistance Program, Part of Keep Your Home California: How Does It Work?”

4) The California Foreclosure Refund deadline is fast approaching- it’s January 18, 2013.  As part of the Attorney General Settlement, there is a foreclosure refund for homeowners who were improperly foreclosed on by one of the large five banks (Ally/GMAC (800-766-4622), Bank of America/Countrywide (877-488-7814), Citibank (866-272-4749), JPMorgan Chase (866-372-6901) and Wells Fargo/Wachovia (800-288-3212).  For more information, see our previous blog: “California Foreclosure Refund Program, Part of the Attorney General Settlement”

5) Homeowner’s Bill of Rights:  This set of laws went into effect on January 1, 2013, and are designed to address the many loan servicing abuses that homeowners have experienced since the foreclosure crisis began.  These include “dual-tracking” (processing a foreclosure while a modification request is also being considered), having to speak with multiple people at their bank or servicer (banks and servicers are now supposed to provide a single point of contact), and other provisions.  In addition, when a person purchases a foreclosed home in California, if there are existing tenants, the new owner must give them a 90 day eviction notice.  This is an additional 30 days more than the previous 60 day requirement.  For more information, visit the Attorney General’s website: California Homeowner Bill of Rights.

I wrote my master’s thesis on similar legislation enacted in North Carolina, and one of the big “take-aways” from my research is that these types of laws are only effective to the extent that homeowners know about their rights under the law, and have the knowledge to complain to regulators when the law isn’t being followed or the ability to hire an attorney and sue their bank or servicer.  So, ForeclosureHelp will be making strong efforts to educate homeowners about their rights under this new legislation.

California Homeowners should also know that the Consumer Financial Protection Bureau is also proposing mortgage servicing regulations, nicknamed the “no run-around” rules.  Homeowners can also file a RESPA request if they are seeking information from their bank or servicer, or if there is a dispute about payments being credited, etc.  For more information, see our previous post: “New Mortgage Servicing Rules Proposed- What Does it Mean for You? Part 2 of 2”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Great summary by the California Department of Housing and Community Development

HCD Blog

BOR

The California Homeowner Bill of Rights takes effect on January 1, 2013 to ensure fair lending and borrowing practices for California homeowners. The legislation was signed into law by California Governor Jerry Brown in 2012.

The laws are designed to guarantee basic fairness and transparency for homeowners in the foreclosure process. Key provisions include:

  • Restriction on dual track foreclosure: Mortgage servicers are restricted from advancing the foreclosure process if the homeowner is working on securing a loan modification. When a homeowner completes an application for a loan modification, the foreclosure process is essentially paused until the complete application has been fully reviewed.
  • Guaranteed single point of contact: Homeowners are guaranteed a single point of contact as they navigate the system and try to keep their homes – a person or team at the bank who knows the facts of their case, has their paperwork and can get them a decision…

View original post 277 more words

Helpful Resources if You’re Facing Foreclosure By Foreclosure Help SCC

By Sean Coffey, MPA, Program Manager of ForeclosureHelpSCC

As 2012 draws to a close, it’s worth taking a quick snap-shot of the past year.  Pete Carey wrote earlier this week in the San Jose Mercury News about the reduction in foreclosures during the month of November, and we hope that this trend continues.

We also want to highlight a few blog postings written for homeowners by the certified housing counselors who staff the ForeclosureHelpSCC program:

Time Sensitive issues for homeowners:

Independent Foreclosure Review:  The deadline for this program is December 31, 2012.  To learn more about this program (eligible homeowners could receive $500 to $125,000 plus lost equity), visit our earlier blog postings:

California Foreclosure Refund:  Also designed for homeowners who dealt with an improper foreclosure, but this program is limited to the big five banks.  The deadline for this program is January 18, 2013.  For more information, read our blog on it: California Foreclosure Refund Program, Part of the Attorney General Settlement

Keep Your Home California: Unemployment Assistance Program.  Aurora Olivares, one of the housing counselors who staffs the Foreclosure Help program, wrote an excellent overview of this program: “Unemployment Mortgage Assistance Program, Part of Keep Your Home California: How Does It Work?”  With recent estimates that 400,000 Californians could lose their unemployment benefits unless Congress extends them, it is particularly important for homeowners who are unemployed to get their applications in NOW while they are still receiving unemployment.  A homeowner WILL NOT qualify for Keep Your Home California Unemployment Assistance program unless they are receiving or are approved for unemployment benefits.

Mortgage Debt Forgiveness Act: This has not yet been extended, but we are hopeful that it will be tied into the current negotiations about the fiscal cliff.  For more information about why this is so important, visit: “Foreclosures in San Jose and Sunnyvale: Three Reasons Time is Not on Your Side”

General Resources for Homeowners from our blog this year (A big THANK YOU to the certified housing counselors from Asian Inc, Neighborhood Housing Services of Silicon Valley, Project Sentinel, and SurePath Financial Solutions for writing these posts).

1) Credit Repair, Credit Issues, Rebuilding Your Credit, Pulling Your Credit Report:

2) How to work with your bank when you are seeking a modification:

3. Advantages of Working with a certified housing counselor from a HUD-approved agency:

4) Renting after a foreclosure or short sale:   Help with rental assistance after a foreclosure – What’s out there?

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.   Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Si usted es dueño de una casa en San José o en Sunnyvale y están luchando con su hipoteca, por favor póngase en contacto con ForeclosureHelpSCC, un programa financiado por la ciudad de San José y la ciudad de Sunnyvale, al (408) -293- 6000, o visite nuestro sitio: www.foreclosurehelpscc.org. Nuestros consejeros aprobados por HUD puede ayudarle a evaluar sus opciones, aprender más acerca de los programas federales y estatales que pueden ayudarle con sus problemas de hipoteca, y le ayudará a crear un plan para seguir.

Por favor, tenga en cuenta: Todos los contenidos incluidos en el blog ForeclosureHelpSCC se proporciona únicamente a título informativo y no debe ser considerada como consejo legal o fiscal. Si usted tiene alguna pregunta, por favor no dude en contactarnos a nuestra línea directa: (408) -293-6000, o visite nuestro sitio:www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

Loan Modification: How To Be Successful

By Stephanie Vang, HomeOwnership Program Manager at Neighborhood Housing Services of Silicon Valley, one of the members of ForeclosureHelpSCC

Do you ever wonder what does it take to get successful loan modification from your lenders?  How long is the loan modification process?  From our experiences of working with distressed homeowner in imminent danger to default and homeowners already in foreclosure; the answer to these questions is TIME.  You must take time away from your busy work schedule to visit your lender’s website to educate and empower yourself and you must allow time for your lender to respond to your request.

Lenders put useful links on their website to help struggling homeowners know their options.   By empowering yourself with this information, you will be better equipped when communicating with your lender about your hardship.  Although every homeowner’s hardship is unique, banks and servicers know which homeowners did their research and which ones did not.  You must take at least a day or two to fully understand what options are available.  You should also visit helpful sites like: www.makinghomeaffordable.gov, www.keepyourhomecalifornia.org, or www.conservatucasa.org, www.hud.gov, and knowyouroptions.org.

You must also take time to prepare a timeline of events with concrete dates of when your hardship started.  When applying for a loan modification, it takes twice if not three to four times the effort as when you initially purchased or refinanced your home.  Like before, you have to get all your documentation ready and prepare yourself when calling your lender.

This call should not be made during a 15 minute break and not during your lunch hour.  This call should take place when you have more than two hours to spare.

Through Neighborhood Housing Service Silicon Valley’s Successful Loan Modification Survey, 31% of the homeowners that were able to prevent foreclosure noted a wait time of 20 – 30 minutes when calling their lenders.  Of the 31% percent, half noted that they outreached to their lender once a week to verify that status of their loan modification and had to repeat the same information every time they contacted their lender.  Some even designated a specific notebook where they recorded the date, time, the conversation, the lender’s representative and the representative’s I.D. number.

Lastly, loan modification varies from lenders to lenders.  If you’re applying for a loan modification, do not expect to get your lender’s response within 30 days.  On average, loan modification can range from 30 to 45 or more business days in response time or longer.  During this time frame, you must stay focused on your goal and stay connected with your lender.  Set aside ample time when calling, designate at least one day out of the week to call and always prepare yourself when calling your lender.  These are some helpful tips from our past homeowners who received successful loan modification.

You may also enjoy our earlier blog posts related to this topic:  “Maggie’s Five Rules for Working With Your Bank or Servicer,”Foreclosures in San Jose and Sunnyvale: Three Reasons Time is NOT on your Side,” and “Five Reasons Working With A Housing Counselor is Better Than “Going Alone.”

If you are a homeowner living in San Jose or Sunnyvale and are struggling with your mortgage, please contact ForeclosureHelpSCC, a program funded by the City of San Jose and the City of Sunnyvale at (408)-293-6000 or visit our website: www.foreclosurehelpscc.org.  Our HUD-approved counselors can help you evaluate your options, learn more about federal and state programs that may help you with your mortgage issues, and will help you create a plan forward.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org or send us an email: help@foreclosurehelpscc.org.

Four Questions For President Obama and Congress about the Foreclosure Crisis Now that Elections are Over

By Sean Coffey, MPA, Program Manager, ForeclosureHelpSCC

Earlier this week, President Obama was re-elected President of the United States.  For people in the housing world, especially those of us who work with homeowners facing foreclosure, we want to know what, (if any) actions the President and Congress will take to address the ongoing foreclosure crisis, with over 5 1/2 million homeowners (nationally) “not current” as of September 2012.

A few specific issues:

1. Will the President and/or Congress intervene in any way to extend the deadline for the Independent Foreclosure Review  beyond the December 31st Deadline?   The number of eligible people who have applied for the review is far below expectations, and there have also been a number of questions raised about how independent the process actually is. The foreclosure refund program of the Attorneys General settlement, a similar program, also has a deadline fast approaching.  Depending on how many eligible people have contacted their Attorney General, it may be worth also extending deadlines for this program.

2.  What will happen with the Mortgage Debt Forgiveness Act?   As we discussed in an earlier blog post, not extending this debt forgiveness could have dire consequences for individual homeowners as well as the success of programs like the Attorneys General Settlement.

3. What will happen with Fannie Mae and Freddie Mac’s overseer?   The National Fair Housing Alliance has a survey monkey poll about whether or not President Obama is going to fire the current director of the Federal Housing Finance Agency, Ed DeMarco.   Some advocates feel that DeMarco’s leadership has limited the GSE’s responses to the mortgage meltdown, including not allowing principal reductions.

4. Will there be any tougher consequences implemented for banks and servicers when they fail to comply with program rules in the Making Home Affordable program, or if they continue robo-signing or dual-tracking?

Are you having trouble paying your mortgage and do you live here in San Jose or Sunnyvale California? If so, contact ForeclosureHelpSCC by telephone: (408) 293-6000, email: help@foreclosurehelpscc.org, or visit our website: www.foreclosurehelpscc.org.

ForeclosureHelpSCC is a program that is supported by the Cities of San Jose and Sunnyvale, and staffed by housing counselors from four local, HUD-approved counseling agencies.

Our housing counselors can speak to you about what your options are if you’re having trouble paying your mortgage, including programs like Making Home Affordable, Keep Your Home California, the Independent Foreclosure Review, and private, in-house modifications offered by banks and servicers as well. Your housing counselor can work with you to develop a plan of action to begin dealing with the problem instead of ignoring it.

Remember, the sooner you start working with a housing counselor, the more options you will have to address your mortgage situation and potentially remain in your home. Time is not on your side, so pick up the phone and give us a call.

Please note: All content included in the ForeclosureHelpSCC blog is provided for information only and should NOT be considered legal or tax advice. If you have any questions, please feel free to contact us on our hotline: (408)-293-6000, or visit our website: www.foreclosurehelpscc.org