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

Posted on December 21, 2012 by CustomerBullHorn

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.

Seven Reasons to Postpone the Independent Foreclosure Review

Posted on December 15, 2012 by CustomerBullHorn

February 28, 2013 Update: New information about the amounts, administration, and timeline of the replacement for the Independent Foreclosure Review was released today. Please read our latest post: “Independent Foreclosure Review: Update on $3.6 Billion in Cash Payments and $5.7 Billion in Modification Assistance”

January 7, 2013 Update: The regulators in charge of the program released information today, explaining that the Independent Foreclosure Review program is being replaced by a settlement program that will give money directly to homeowners. A payment agent for the new program will be appointed in March 2013. For more information, visit our blog: “Independent Foreclosure Review Program is Replaced With New Settlement”

Editor’s Note: While we strongly encourage anybody reading this article to see if they are potentially eligible for the Independent Foreclosure Review and to apply, we remain deeply concerned with the outreach and administration of the Independent Foreclosure Review. Guides for applying: English: Independent Foreclosure Review (the deadlines is December 31, 2012- you can also call them at: 1-888-952-9105) and Spanish:La Revisión Independiente de la Ejecución Hipotecaria.” You should also see if you’re eligible for the Foreclosure Refund (offered under the Attorney General Settlement- Deadline in California is January 18, 2013).

While 4.3 million homeowners were in foreclosure from 2009-2010, recent estimates suggest that under 300,000 people have applied for the review, and none of those who have applied have heard about the results of their reviews. For this reason, we have started a petition asking that the deadline be extended until two months after at least 215,000 homeowners have heard about the results of their reviews. If you agree, please sign the petition and share with your networks, friends, family, facebook, etc: “Postpone the Deadline for the Independent Foreclosure Review Until 215,000 Cases Have Been Released”

A big thank you to the investigative reporters who have followed the creation of the Independent Foreclosure Review and have asked important questions about the outreach, implementation, and conflicts of interests with the program.

1) After a year of accepting homeowner applications, we still don’t know the results: The results of the reviews, including if compensation is paid to homeowners, will not be released until AFTER the deadline has passed. If it’s important to reach eligible homeowners and former homeowners, wouldn’t it make sense to release the results of some of the reviews for people who have already applied during the past year so that they can tell their friends, family, neighbors, communities and local newspapers about the reviews?

2) Homeowner gets $1, consultant gets $4. One media report suggests that for every $1 a homeowner may receive as a result of the review finding that a bank/servicer improperly processed a case, a consultant may have received $4. From American Banker’s November 1, 2012 article “Foreclosure Reviews: Exorbitant for Banks, Gold Mines for Consultants“: “Bankruptcy filings by ResCap, the former GMAC mortgage servicer slated to be acquired by Ocwen, state that the company will pay consultant PricewaterhouseCoopers $12,500 to review each of 20,000 loans for a total cost of a quarter-billion dollars. Yet ResCap expects to pay only $35 million to $60 million to harmed homeowners.”

3) There are a lot more potentially eligible homeowners than have applied so far: A November 2012 report found that 800,000 more homeowners should have qualified for the Making Home Affordable program, and would have, if all of the banks/servicers were modifying mortgages at the same rate as the most efficient banks/servicers. (Thank you to Huffington Post for highlighting this report in their October 2012 article: “Mounting Evidence Raises Questions About Independent Foreclosure Review.”)

4) What to do if your loan was serviced by Litton or Saxon? Both Saxon Mortgage Services and Litton Loan Servicing were also targeted by federal regulators for their sloppy work with homeowners, yet it remains unclear what homeowners should do if they were a customer of these clients. According to Federal Reserve press releases (Saxon press release; Litton/Goldman Sachs press release), both Saxon and Litton are supposed to engage consultants to conduct reviews. However, there is no information on the independent foreclosure review website for homeowners who had their loans serviced by these companies.

5) Banks get to appeal, but homeowners don’t: According to Propublica’s October 11 article, “Is BofA’s Foreclosure Review Really Independent? You Be the Judge” it appears that Bank of America will get to appeal decisions made by its independent reviewer, but a homeowner will not get the chance for an appeal: “The Bank of America memo also announced another change: the creation of a de facto appeals procedure for the bank. Designed in part “as a response” to Promontory deciding homeowner compensation, the bank would be adding an “Additional Information” unit, the executives wrote. The unit’s job, an employee said, is to respond when Promontory finds that a homeowner deserves compensation by producing any evidence that the bank didn’t commit the abuse or error. In contrast, homeowners who file a complaint will have no opportunity to appeal the determination of whether they deserve compensation or not.”

6) Consultants may have conflicts of interest: There have been a number of reports about conflicts of interest between the consultants hired to do the reviews and the banks that hired them. Francine McKenna detailed these conflicts in a March 5, 2012 article in American Banker:“The Little We Know About Foreclosure Reviews Is Troubling.” She explained: “The Deloitte partner in charge of the JPMorgan engagement, Ann Kenyon, was a partner on Deloitte’s audit of Washington Mutual. So it would not be in her interest for Deloitte’s consultants to turn up any auditing errors the firm made with that mortgage originator, particularly since Deloitte is a defendant in shareholder litigation related to Washington Mutual’s collapse.”

7) Official who led “Hustle” at Countrywide is in charge of Chase’s Foreclosure Review According to Propublica’s November 9, 2012 article “Exec Who Allegedly Enabled Fraud Runs Chase’s Effort to Compensate Foreclosure Victims” the same woman who was the Chief Operating Officer at Countrywide’s lending division which carried out the “Hustle” (Motto was “Loans move forward, never back”), is now in charge of JPMorgan Chase’s Independent Foreclosure Review. The article explains that the “Hustle” ended up costing Fannie Mae and Freddie Mac over $1 billion in losses when the loans went bad.

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 Joseand 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.

What is a Credit Report and Why is it Important to You?

Posted on December 13, 2012 by CustomerBullHorn

Editor’s note: If you haven’t applied for the Independent Foreclosure Review yet, there is still time, but the deadline is December 31, 2012. For more information, visit our blog: Independent Foreclosure Review Deadline is December 31, 2012. Learn How to Apply Here. Spanish: La fecha límite para La Revisión Independiente de la Ejecución Hipotecaria es el 31 de diciembre 2012. Aprender a aplicar aquí! Or visit the website: www.independentforeclosurereview.com, or call the program: 1-888-952-9105

By JoAnn Parrott, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC.

A credit report is more than a collection of financial information and statistics. A credit report displays and represents your financial picture. A credit report is an accounting of how you have handled your past finances and debt and is a gauge of how you will continue to do so in the future. The credit report determines if you are credit worthy or may be a credit risk to those who offer credit (also known as creditors). The credit report helps creditors decide who gets credit or who does not.

If you have been financially responsible in the past and have good credit, you probably don’t think twice about credit. It is just there for you whenever needed. However, if you have no credit or poor credit, managing your daily financial life may be difficult.

WHAT IS IN A CREDIT REPORT?

If you have never applied for personal credit, you probably don’t have a credit report history. But, if you have applied for and used credit in the past, a basic credit report consists of your name, current and recent addresses, Social Security Number, date of birth and current and previous employers. The report also displays each credit account registered in your name, the date the account was opened, the credit limit on a credit card or loan, the payment terms, the balance owed, the monthly payment amount, and a record of your payment history (i.e., how many times you paid on time or were late). This information is contained in your credit report even if you personally have not applied for credit but have agreed to be a co-signer or authorized user on someone else’s credit account.

TIP: If you are a co-signer on a credit card or loan account, you are responsible for the debt if the other party fails to keep the monthly payments current. If you are an authorized user, you are not responsible for the monthly payments or the balance due if the account is not kept current. So, be VERY careful about agreeing to be a co-signer on an application for credit.

A credit report also lists each time you have applied for credit – these are known as ‘inquiries.’ By viewing the ‘inquiries’, creditors can determine if you have applied for too much credit or have been recently approved for additional credit. If the number of applications or approvals is too high, creditors may deny you if it appears you are trying to acquire too much credit too quickly.

TIP: This can happen to new homeowners or young adults when they want to decorate a new home or apartment. If you apply for and are denied credit, this may have a negative impact on your credit report and credit score.

WHAT IS NOT IN A CREDIT REPORT?

Information NOT contained in a credit report consists of checking and saving account balances, bankruptcies that are more than 10 years old, charged-off debts or debts placed for collection that are more than seven years old, gender, ethnicity, religion, political affiliation, medical history or criminal records. Judgments generally remain on a credit report for 7 years from the date filed, whether the debt was paid or not. If paid, the judgment entry changes from UNSATISFIED to SATISFIED but still remains for the required length of time. Unpaid tax liens remain indefinitely.

NO CREDIT? WHAT SHOULD YOU DO?

In the everyday world of credit, there are two types of credit cards and loans – Secured and Unsecured.

SECURED CREDIT CARD: If you have poor credit or no credit and know you will have a need, you may want to apply for a secured credit card. A secured credit card is an account in which you deposit your own money (generally a minimum amount) to be used for future credit transactions. A secured credit card gives you the ability to use the money (up to a certain amount) as a credit card – i.e. charge movie tickets or order a pizza – until you can apply for a less restrictive unsecured credit card. Most secured credit cards do not allow the total amount of money deposited into the account to be consumed by charge transactions.

The creditor retains a portion of the money as a ‘cushion’ to cover unexpected events, such as non-payment. If your charges exceed the allowed amount, there can be substantial fees and penalties applied. If you don’t keep the account in good standing, the creditor can deny future credit transactions you attempt to do. Not a happy thought if you want to treat a friend to lunch and your card is denied! In some cases, if the past due amount becomes too high; the account may be closed or suspended. The account will continue to accrue interest charges, fees and may even be subject to collection action. Most secured credit cards also carry annual expense fees.

TIP: Secured credit cards physically look the same as unsecured credit cards. There is no way of telling that your card is a secured card. After a period of time if you have established a positive payment history and adhered to the secured credit card terms, you may apply for an unsecured credit card or loan. There is no specific time period to do this. Just be cautious about applying for too many cards.

SECURED CREDIT LOAN: This type of loan is used for high dollar purchases that cannot be paid in full each month – i.e. the purchase of a car or house. This type of loan is for a specific dollar amount and time period. If the loan payments are not kept current, the owner of the loan can repossess or take back the item – i.e. the car. In this case, the car is security for the debt. Generally without exception, a mortgage loan is secured by the property. If the mortgage payments are not made, the mortgage holder will take the property in a foreclosure sale.

UNSECURED CREDIT CARD: An unsecured credit card is a line of credit that is available to you with no restrictions (up to the credit limit), as long as the account is in good standing. For example, if you charge the purchase of clothing on your unsecured credit card and you don’t pay the full or minimum amount by the Due Date, the creditor will not repossess or take back the clothes. However, the account could still be assessed fees and penalties and may be closed or suspended if the matter is not resolved. Any past due payments will be recorded on your credit report.

UNSECURED CREDIT LOAN: This type of loan can be for any amount and time period, but is generally not a standard product offered by creditors for large loan amounts. Creditors want their loans secured by an item of value if there is a default on the account. The best use of this loan type would be for personal loans among family members or friends where, if payments are not made, no property is attached to the loan and therefore there is no repossession.

TIP: For most secure and unsecured credit card accounts, it is recommended that the full amount charged be paid in full each month to avoid interest charges and to assist in building a good credit history. Keeping any loan in good standing is a good idea.

HOW TO GET A COPY OF YOUR CREDIT REPORT?

On November 22, 2003, through the Fair and Accurate Transaction (FACT) Act, consumers were given the right to obtain a free copy of their credit report every 12 months from each of the 3 major credit bureaus. These credit bureaus collect and analyze credit transactions for their clients (AKA creditors) i.e., banks, credit unions, and retail establishments for example. The 3 major bureaus are: Experian (www.experian.com, 1-888-397-3742), TransUnion (www.transunion.com, 1-800-916-8800), and Equifax (www.equifax.com, 1-800-685-1111).

To obtain a copy of your credit report or reports, you can contact the credit bureaus directly, visit their websites, or use the website: www.annualcreditreport.com . This website provides access to each credit bureau report. A consumer can apply online for a single report or for all 3 reports at the same time. There are companies who will help you track the contact and accuracy of your credit report for a fee.

TIP: It is recommended that a consumer stagger their credit report requests every 4 months between each bureau. In most cases, the same credit information is on each bureau’s report, but sometimes in a slightly different format. By staggering the reports, a consumer can track activity over the time period as well as the contact of each report.

TIP: Each time YOU look at your own credit report, there is no ‘inquiry’ activity recorded. However, each time you apply for credit through a third party, there is an ‘inquiry’ recorded. So, if you apply for too much credit, the next third party you apply to will see the ‘inquiry’ activity and possibly may deny the application for credit due to excessive applications. Also, there is a chance that the volume of applications may affect your FICO score. BE CREDIT SMART!

WHAT IS A FICO CREDIT SCORE AND WHY IS IT IMPORTANT TO YOU?

Attached to each report is a credit score known as a FICO (Fair Issac Corporation) score. The FICO score can range from 300 to 850, but the majority of scores usually fall within the 600s and 700s. Your goal is to have the highest number possible based on your use of credit and the history contained in your credit report. Each one of the credit bureaus has their own FICO score criteria. A FICO score may differ between the 3 credit bureaus because not all creditors submit to each bureau.

A FICO score is a combination of many credit associated items. Based on the type of credit, a FICO score is made up of the following percentages:

35% for history;
15% for length of credit;
10% for newly acquired credit;
10% for types of credit; and
30% for amount of debt owned on credit cards and loans. A few examples of what can lower a FICO score are: late payments, too high of credit used against credit limit, past due payments, too many credit cards, judgments, collections, or too many applications for credit.

It is possible to obtain your FICO score by contacting each credit bureau for their process or at the www.annualcreditreportcom website, but there is a fee. However, if you pay a credit reporting and tracking agency, you may be able to obtain the FICO score free of charge.

If you discover errors within your credit report, you should contact the providing bureau directly. If they don’t correct the errors, you can contact the Consumer Financial Protection Bureau (CFPB) at 1-855-411-2372 or TTY/TDD 1-855-729-2372 and/or file a complaint with the CFPB at http://www.consumerfinance.gov/blog/headline-now-accepting-credit-reporting-complaints/ ; or send a letter to Consumer Financial Protection Bureau, P. O. Box 4503, Iowa City, Iowa 52244.

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.

Postpone The Independent Foreclosure Review Deadline Until After 215,000 Reviews Have Been Released

Posted on December 12, 2012 by CustomerBullHorn

The ForeclosureHelpSCC Consortium is sponsoring a petition on Change.org, requesting that the deadline for the Independent Foreclosure Review is postponed past the current deadline of December 31, 2012. ForeclosureHelpSCC is requesting the regulators to postpone the deadline until two months after at least 215,000 homeowners have been informed about the results of their review. This represents only five percent of the 4.3 million homeowners who were in foreclosure from 2009-2010.

For context, a report released in November found that 800,000 more homeowners should have received modifications under the Making Home Affordable program but did not because of a few large servicers who modified loans at a much lower rate than their peers.

The Independent Foreclosure Review was created after three regulators (the Federal Reserve, the Office of the Comptroller Currency, and the Office of Thrift Supervision) conducted reviews at 14 large banks and servicers and found: “critical weaknesses in servicers’ foreclosure governance processes, foreclosure document preparation processes, and oversight and monitoring of third-party vendors, including foreclosure attorneys.”

ForeclosureHelpSCC is asking regulators to extend the deadline because we are concerned that not enough homeowners have learned about the program and applied for it. Beyond the weaknesses in the marketing plan and outreach highlighted by the GAO in a report earlier this year, we are also concerned that the results of the reviews (for homeowners who have already applied) have not been released. We believe that releasing the results would be a powerful way to create word-of-mouth marketing about the program for homeowners who were harmed by their bank or servicers and who could be eligible to receive compensation as a result.

To sign the petition, click on this link: “Postpone the Deadline for the Independent Foreclosure Review Until 215,000 Cases Have Been Released”

To learn more about eligibility for the Independent Foreclosure Review, visit this website: www.independentforeclosurereview.com or call: call 1-888-952-9105.

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.

Mejorando El Credito Despues De Una Ejecución De Hipoteca O Venta Corta

Posted on December 3, 2012 by CustomerBullHorn

By Aurora Olivares, Housing Counselor at Project Sentinel, one of the members of ForeclosureHelpSCC

Construir y mantener el crédito esta frecuente en las mentes de los dueños de casa aquí en San José y Sunnyvale. No es ningún secreto que su crédito recibe un golpe duro durante y después de una ejecución hipotecaria o venta corta. Cuando uno esta más de 30 días de atraso en su hipoteca, se reporta en su informe de crédito y su puntuación de crédito es afectado negativamente. Para obtener más información acerca de cómo una ejecución de hipoteca una ejecución de hipoteca, una venta corta sin una deficiencia, una venta corta con una deficiencia, y la bancarrota impactan a tres propietarios de viviendas típicos, lea las entrada de blog de FICO (Banking Analytics): “La investigación analiza cómo afecta la morosidad hipotecaria cuentas”

Los dueños de casa que no pueden pagar su hipoteca o conseguir un entrenamiento con sus prestamistas, pueden caer más atrasados en sus pagos, y su reporte de crédito empeorará. El crédito del propietario de vivienda va ser afectado por todo este tiempo hasta que la delincuencia se resuelva.

Hay que avanzar rápidamente. ¿Qué sucede después de que alguien pasa por el proceso de ejecución hipotecaria?

Los procedimientos de la ejecución hipotecaria son reportados a la oficina de crédito por el prestamista y se anotará en su reporte de crédito durante los próximos 7 a 10 años. Sin embargo, esto no quiere decir que no se puede reconstruir su crédito después de una ejecución hipotecaria o venta corta y convertirse en propietario de una casa de nuevo.

Aquí hay 5 consejos sobre cómo reconstruir su crédito para que pueda prepararse si usted decide comprar una casa en el futuro o que solicitar otro tipo de crédito después de pasar por el proceso de ejecución hipotecaria.

1. Paga sus deudas a tiempo. Pagando la cantidad mínima mensualmente a tiempo se reflejará positivamente en su informe de crédito.

2. Mantenga bajos los balances de sus tarjetas de crédito. Si usted tiene una tarjeta de crédito con un saldo revolvente, trate de mantener el balance de la cuenta a 30% o menos del límite de crédito total de dicha cuenta. Por ejemplo, si su límite de crédito es de $ 10,000, usted debe tratar de mantener el balance de esa cuenta por debajo de $ 3,000.

3. Pague más que el pago mínimo mensual. Con sólo pagar $1 más por mes que el pago mínimo requerido, se registrará de manera positiva en su puntaje de crédito. No importa la cantidad, podría ser de $ 1 o $100 más de la cantidad mínima que se requiere pagas. Utilice este método para maximizar su capacidad para pagar la deuda más rápido y comenzar a reconstruir su crédito.

4. Mantenga abiertas sus cuentas antiguas de crédito. La longevidad de una cuenta tiene mucha importancia en como se calcula el puntaje de crédito. Los prestamistas les gusta ver que usted tiene un historial de uso de crédito y la capacidad de pagar sus facturas. Por lo tanto, si se cierra una cuenta antigua, que va a impactar negativamente su puntaje de crédito. Si es necesario cerrar las cuentas de crédito, considere la eliminación de nuevas cuentas en primer lugar.

5. Evite las esquemas de soluciones rápidas. Prometiendo la habilidad de arreglar su crédito en menos de 90 días quizás no pueden ser los medios más confiables. Si suena demasiado bueno para ser verdad, probablemente lo es. Si usted decide buscar ayuda profesional para ayudarle a resolver sus problemas de crédito, asegúrese de que es una organización de buena reputación. Una forma rápida de investigar si una organización está ofreciendo asistencia legítimo de asesoría de crédito es para ver si pertenecen a la Fundación Nacional de Consejería de Crédito, una organización sin fines de lucro, que tiene miembros de sus organismos miembros a un alto nivel. Visite su sitio: www.nfcc.org para obtener más información o para encontrar una agencia de asesoría de crédito cerca de usted.

En conclusión, la reconstrucción de su puntuación de crédito después de una ejecución hipotecaria o venta corta tomará tiempo y dedicación . No hay “solución rápida” para reparar su crédito.

Si no lo ha hecho, es posible que quedra obtener su reporte de crédito gratis. Y un recordatorio de la Comisión Federal de Comercio: AnnualCreditReport.com es la única fuente autorizada para el reporte de crédito anual gratuito que por ley. La Ley de Informe Justo de Crédito garantiza el acceso a su reporte de crédito gratis de cada una de las tres compañías de informes de crédito – Experian, Equifax y TransUnion – cada 12 meses.

Lee nuestros otros blogs en español:

¿Por Qué Trabajar Con Un Consejero de Casa?

5 Programas importante para los propietarios de California

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 a 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 a 6000, o visite nuestro sitio: www.foreclosurehelpscc.org o envíenos un correo electrónico: help@foreclosurehelpscc.org.

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

Posted on November 8, 2012 by CustomerBullHorn

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 31^st 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.

Refinance vs. Modification: What are the differences?

Posted on September 5, 2012 by CustomerBullHorn

By Yvonne Castillo, Housing Counselor at SurePath Financial Solutions, one of the members of ForeclosureHelpSCC

With the housing crisis all around us in San Jose, Sunnyvale, and other cities in Santa Clara County, we hear some buzz words over and over, words such as foreclosure, modification, refinance and short sale. As a HUD-approved housing counseling agency, we often hear questions about the differences between modification and refinance, and which one is the best one to choose. The information below explains some of the main differences between these two options.

REFINANCE
What is a refinance? A refinance is a new loan that you take out to pay off your old loan. A traditional refinance will require you to have equity on the property (up to 20%) to request a new loan.

Reasons why people refinance: There are many reasons you may want to refinance your existing mortgage. For example, you may do it to lower your payments or interest rate. Or, to consolidate your 1st and 2nd mortgages, to extend or shorten the length of your mortgage, to change lenders, or to add or remove someone from your existing mortgage.

What happens when you refinance? It is similar to the process of when you received your original mortgage. Because this is a new loan, you will receive a new loan number and your new loan may have different terms than your old loan.

Before you contact a lender to consider refinancing you should order your credit reports from Experian, Equifax and TransUnion (consider using Annual Credit Report to get an idea of the information included in your credit report). Generally speaking, the higher the credit rating you have, the better an interest rate you can qualify for, and the more money you will save. You will also need to show sufficient income to afford the new payments as well as your household expenses.

Unemployment and temporary disability benefits are considered temporary forms of income. Therefore, they are not acceptable forms of income when refinancing. You should also be current on your mortgage, car and credit card payments for approximately the past twelve months when considering refinancing as an option to remain in your home.

What costs are involved in a refinance? When refinancing there can be origination, processing and closing costs. Some lenders may waive some of these fees by including them into the loan balance. Check with your lender about any up-front or financed cost involved.

What if I do not have equity in my property? If your property is worth less than what you owe and your loan is owned by Fannie Mae or Freddie Mac, you may want to learn more about the Home Affordable Refinance Program, also known as HARP. This is one of the federal programs to assist homeowners to refinance their loans even if they don’t meet the equity criteria. You can learn more about the program on the Making Home Affordable website.

MODIFICATION
What is a loan modification? It is a temporary or permanent change of the terms of the current mortgage agreement that is usually requested to make the mortgage payments more affordable.

What is the main reason why people request a loan modification? The main reason to consider a loan modification is to have more affordable mortgage payments and remain in your home, especially if you do not qualify to refinance your mortgage. You have to be experiencing a financial hardship which has made it difficult to make your current mortgage payments or missed one or more of your mortgage payments. It’s important to note that banks and servicers do not consider it a financial hardship if your only reason to modify your loan is because you owe more on your mortgage balance than the home is currently worth (also known as being “upside down”).

What terms can be changed in a modification? When receiving a loan modification you will keep your current loan number but some of the terms on your mortgage will be modified. This could include lowering your interest rate, or modifying an adjustable rate mortgage (where the interest rate varies) to a fixed rate mortgage where your mortgage payments and rate will remain fixed for the life of the loan. In some modifications, the interest rate is lowered for a few years (for example, a modification under HAMP can go as low as two percent), and then gradually increases over the course of a few years.

Will my payments be lower with a loan modification? For many households the loan modification has allowed them to reduce their mortgage payments and bring their loan current. However, it is important to note that if your current loan is an interest only loan, then changing it to a fully amortizing loan (where you are paying interest and principal) could result in an increase of your mortgage payment. However, banks and servicers can address this issue by lowering the interest rate, or lengthening the life of the loan (for example from 30 to 40 years).

In some limited cases, a loan modification may reduce or defer the balance owed. The homeowner may have a wish list of how they want their bank or servicer to modify their loan, but ultimately it is up to the bank or servicer (and sometimes the investor(s) who own the mortgage) whether or not they will modify the loan, and if so, how the terms will be adjusted.

Are there costs involved with a loan modification? Generally, there is no origination, processing and closing costs included when doing a loan modification. However some lenders will charge a small loan modification fee that is added to the balance of your loan and disclosed in the loan modification documents.

What information will be reviewed in a loan modification? Your bank or servicer will require a complete financial disclosure to evaluate the possibility of granting a loan modification. Information regarding your household income and expenses, amount of debt, proof of income, reason of the financial hardship, debt to income ratio etc, will be required to evaluate your modification request. If you have stopped making your mortgage payments, your bank or servicer will review if the non-payment is a result of the financial hardship. The bank will also want to see that there is a sustainable action plan going forward that will allow you to have sufficient income to continue paying your modified mortgage.

If you are a homeowner living in San Jose or Sunnyvale and want to know if either of these options will be applicable to your case 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. HUD approved counselors are available to provide free counseling sessions that will help you review your finances and evaluate the options for you.

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