This booklet explains how property owners can avoid losing their homes
because of delinquent payments.
Este folleto explica a los propietarios de casas como evitar perder su hogar
debido al incumplimiento en los pagos. Para información en español
llame a la entidad que le dió el préstamo.
www.hud.gov
HOW TO AVOID FORECLOSURE
U.S. Department of Housing and Urban Development
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WHAT HAPPENS WHEN I MISSMY MORTGAGE PAYMENTS?
Foreclosure may occur. This is the legal means that your
lender can use to repossess (take over) your home. When this
happens, you must move out of your house. If your property
is worth less than the total amount you owe on your
mortgage loan, a deficiency judgment could be pursued. If
that happens, you not only lose your home, you also would
owe HUD an additional amount.
Both foreclosures and deficiency judgments could seriously
affect your ability to qualify for credit in the future. So you
should avoid foreclosure if possible.
WHAT SHOULD I DO?
1. DO NOT IGNORE THE LETTERS FROM YOUR
LENDER. If you are having problems making your pay-
ments, call or write to your lender's Loss Mitigation
Department without delay. Explain your situation. Be
prepared to provide them with financial information,
such as your monthly income and expenses. Without this
information, they may not be able to help.
2. Stay in your home for now. You may not qualify for
assistance if you abandon your property.
3. Contact a HUD-approved housing counseling agency. Call
1-800-569-4287 or TDD 1-800-877-8339 for the
housing counseling agency nearest you. These agencies are
valuable resources. They frequently have information on
services and programs offered by Government agencies as
well as private and community organizations that could
help you. The housing counseling agency may also offer
credit counseling. These services are usually free of charge.
WHAT ARE MY ALTERNATIVES?You may be considered for the following:
Special Forbearance. Your lender may be able to arrange a
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repayment plan based on your financial situation and may
even provide for a temporary reduction or suspension of
your payments. You may qualify for this if you have recently
experienced a reduction in income or an increase in living
expenses. You must furnish information to your lender to
show that you would be able to meet the requirements of the
new payment plan.
Mortgage Modification. You may be able to refinance the
debt and/or extend the term of your mortgage loan. This
may help you catch up by reducing the monthly payments
to a more affordable level. You may qualify if you have
recovered from a financial problem and can afford the new
payment amount.
Partial Claim. Your lender may be able to work with you
to obtain a one-time payment from the FHA-Insurance
fund to bring your mortgage current.
You may qualify if:
1. your loan is at least 4 months delinquent but no more
than 12 months delinquent;
2. you are able to begin making full mortgage payments.
When your lender files a Partial Claim, the U.S.
Department of Housing and Urban Development will pay
your lender the amount necessary to bring your
mortgage current. You must execute a Promissory Note, and
a Lien will be placed on your property until the Promissory
Note is paid in full.
The Promissory Note is interest-free and is due when you
pay off the first mortgage or when you sell the property.
Pre-foreclosure sale. This will allow you to avoid
foreclosure by selling your property for an amount less than
the amount necessary to pay off your mortgage loan.
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You may qualify if:
1. the loan is at least 2 months delinquent;
2. you are able to sell your house within 3 to 5 months; and
3. a new appraisal (that your lender will obtain) shows
that the value of your home meets HUD program
guidelines.
Deed-in-lieu of foreclosure. As a last resort, you may be
able to voluntarily “give back” your property to the lender.
This won't save your house, but it is not as damaging to
your credit rating as a foreclosure.
You can qualify if:
1. you are in default and don't qualify for any of the other
options;
2. your attempts at selling the house before foreclosure were
unsuccessful; and
3. you don't have another FHA mortgage in default.
HOW DO I KNOW IF I QUALIFY FORANY OF THESE ALTERNATIVES?
Your lender will determine if you qualify for any of the
alternatives. A housing counseling agency can also help you
determine which, if any, of these options may meet your
needs and also assist you in interacting with your lender.
Call 1-800-569-4287 or TDD 1-800-877-8339.
SHOULD I BE AWARE OF ANYTHING ELSE?
Yes. Beware of scams! Solutions that sound too simple or
too good to be true usually are. If you're selling your
home without professional guidance, beware of buyers
who try to rush you through the process. Unfortunately,
there are people who may try to take advantage of your
financial difficulty. Be especially alert to the following:
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Equity skimming. In this type of scam, a “buyer”
approaches you, offering to get you out of financial trou-
ble by promising to pay off your mortgage or give you a
sum of money when the property is sold. The “buyer”
may suggest that you move out quickly and deed the
property to him or her. The “buyer” then collects rent for
a time, does not make any mortgage payments, and
allows the lender to foreclose. Remember, signing over
your deed to someone else does not necessarily relieve
you of your obligation on your loan.
Phony counseling agencies. Some groups calling
themselves “counseling agencies” may approach you and
offer to perform certain services for a fee. These could well
be services you could do for yourself for free, such as negoti-
ating a new payment plan with your lender, or pursuing a
pre-foreclosure sale. If you have any doubt about paying for
such services, call a HUD-approved housing counseling
agency at 1-800-569-4287 or TDD 1-800-877-8339.
Do this before you pay anyone or sign anything.
ARE THERE ANY PRECAUTIONSI CAN TAKE?
Here are several precautions that should help you avoid
being “taken” by a scam artist:
1. Don't sign any papers you don’t fully understand.
2. Make sure you get all “promises” in writing.
3. Beware of any contract of sale or loan assumption where
you are not formally released from liability for your
mortgage debt.
4. Check with a lawyer or your mortgage company before
entering into any deal involving your home.
5. If you’re selling the house yourself to avoid foreclosure,
check to see if there are any complaints against the
prospective buyer. You can contact your state’s Attorney
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HUD APPROVED HOUSING COUNSELING AGENCIES IN WYOMING
WYOMING HOUSING NETWORK, INC. Program Development Director 2345 East 2nd Street Casper, WY 82609 Telephone: (307)472-5843 Fax: (307)472-0893 FINANCIAL SOLUTIONS OF WYOMING 441 South Center, Suite 100 Casper, WY 82602 Telephone: (307)234-8771 Toll Free: (800)390-2227 Fax: (307)235-1618 Type of Counseling: Pre-purchase, Default/Foreclosure and HECM Counseling INTERFAITH OF NATRONA COUNTY, INC. 1514 East 12th Street, #303 Casper, WY 82601 Telephone: (307)235-8043 Fax: (307)235-8711 E-mail: [email protected] CONSUMER CREDIT COUNSELING SERVICEOF NORTHERN COLORADO & SOUTHEAST WYOMING - AKA - GREENPATH DEBT SOLUTIONS 1912 Capital Avenue, Suite #320 Cheyenne, WY 82001 Telephone: (307)638-3559 Toll Free: (800) 424-2227 Fax: (970)336-0004 Website: www.greenpath.com Type of Counseling: HECM, Default/Foreclosure, Rental and Pre-Purchase Counseling NORTHERN ARAPAHO TRIBAL HOUSING 501 Ethete Road Ethete, WY 82520 Telephone: (307)332-0230 Type of Counseling: Pre-Purchase and Rental Counseling WYOMING FORECLOSURE HOTLINE Wyoming Attorney General's Office & Brothers Redevelopment, Inc. Telephone: (855)996-2256 Main office in Cheyenne, WY Type of Counseling: Foreclosure Prevention, Refinance Options, Pre-purchase housing counselor
If you would like us to look at any type of repayment or forbearance plan or short sale (pre-foreclosure sale), we need you to fill out, gather and return ALL the following information (if applicable) as soon as possible: • please read fully the enclosed pamphlet on How to Avoid
Foreclosure • fill out fully and sign the financial information • copies of your last 4 paystubs OR verification of
employment (if you use the verification, please fill out #'s 1, 7 & 8 ONLY) OR contractual letter from new employer
• 2 current paystubs or letter from any person you are getting money from monthly that is not listed on the loan
• proof of child support, unemployment, social security received (i.e. letter of award) if applicable
• FULL copies of your most current 2 years tax returns • copies of your most current 3 months bank statements -
this must include ALL accounts, checking, savings and investment accounts
• DETAILED letter explaining why loan is delinquent (why your income has been reduced or your debt load has increased)
• proof of bills that are not normal, monthly bills (i.e. medical, IRS, collections/judgments) and letters of agreement of the monthly payments
• proof of child support payments • copy of divorce decree • proof of rent money received. i.e. lease agreement or
letter from renter
Name:_________________________
Wyoming Community Development Authority
MONTHLY MONTHLY$ -$ $ -$
-$ -$ -$ -$ -$
$ $-$ $
$-$ $
$$ $$$ $$ $$ -$
$-$ $
Car payment #2 Balance = -$ -$ $ -$ $
-$ $$ $$ $$ $$ $$ -$
$$$ $
-$ -$ $ $
-$ $-$
-$ -$ Student loan(s Balance= $
$ Credit Card #1 Balance= $$ Credit Card #2 Balance= $
Credit Card #3 Balance= -$ -$ Credit Card #4 Balance= -$ -$ Medical bills Balance= -$ -$ Personal loans Balance= $
$ Other Balance= -$ -$ Other Balance= -$
Second mortgage - principal & int
Budget will automatically calculate mathematical equations. Please enter projected monthly household expenses.
TRANSPORTATIONCable/Satellite/Internet
Homeowners Insurance
Newspapers & magazines
Holidays
Public transportation
Car InspectionAuto Insurance
EDUCATION
PERSONAL
Property taxes
Video rentals
Homeowners association duesMortgage insurance
Tuition & lessons
CharityTithe
otherother
Parking & tolls
License plates & registration feesCar Repair & Maintenance
Fitness or socials clubs
First mortgage - principal & intere
Birthdays
Other
UTILITIES
GIFTS
Telephone/CellWater/Sewer/TrashGas
Work related (lunches or snacks)
Health (medical/dental if not payroll dedu
DONATIONS
Doctor
OtherDisabilityLife
Home maintenance & furnishingsSchool lunches
PostagePet care & supplies
Prescriptions
Other
Other
MEDICAL
INSURANCE
Chiropractor
Dentist
Checking account fees
Groceries
Books, papers & supplies
Electric
ToiletriesBarber & beauty shop
Other
other
Other
FOOD
Movies, sporting events, concerts
HouseholdBeer/wine/liquorTobacco allowanceChildren's allowance
Gas
Other
Car payment #1 Balance =
Projected Monthly Budget
MISCELLANEOUS
HOUSING
ENTERTAINMENT
DEBTS
Eating out
Other
Other
Gambling & lottery tickets
Hobbies or craftsVacation or trips
Name:_________________________
Wyoming Community Development Authority
Other Balance= -$ $$ $$ $
$$ $
-$ $INCOME Gross Net
Salary - Homeowner #1 $ $ $Salary - Homeowner #2 $ $ $Social Security $ $ $Unemployment $ $ $Disability $ $Child support -$ -$ Alimony $ $Other -$ -$
$ $$
-$
(Housing+Debt / Gr. Income)
Total Mortgage(s) Balance
Other
Second Mortgage Balance
Laundry/dry cleaningDEDUCTIONS FROM INCOME
Clothing
Child support/AlimonyChildcare or babysitter
CLOTHING
CHILDCARE
Housing Ratio (Total/Gross Inco
Total Debt Ratio
Estimated Property Value
#DIV/0!-$
-$
Total PITI, MI, HOA
Housing Expenses + Debt
#DIV/0!-$
#VALUE!First Mortgage LTV
#DIV/0!
TOTAL MONTHLY EXPENSES
First Mortgage Housing Ratio
-$
-$
TOTAL NET MONTHLY INCOME
FOR OFFICE USE ONLY
#VALUE!Total Loan To Value (LTV)
TOTAL GROSS MONTHLY INCO
DIFFERENCE (Net Income - Expe
First Mortgage Balance
-$
Other401k deductionIRA deductionMonthly savings
OTHER EXPENSES
PLEASE REMEMBER:
PAYMENT PLANS: * Credit Reporting: Please note that we will continue to report the delinquency status of your loan to credit reporting agencies as well as your entry into a Forbearance Plan in accordance with the requirements of the Fair Credit Reporting Act and the Consumer Data Industry Association requirements. CREDIT SCORING COMPANIES GENERALLY CONSIDER THE ENTRY INTO A PLAN WITH MODIFIED PAYMENTS AS AN INCREASED CREDIT RISK. AS A RESULT, ENTERING INTO A PLAN WITH MODIFIED PAYMENTS MAY ADVERSELY AFFECT YOUR CREDIT SCORE, PARTICULARLY IF YOU ARE CURRENT ON YOUR MORTGAGE OR OTHERWISE HAVE A GOOD CREDIT SCORE. ***THIS WILL NOT EFFECT YOUR CREDIT RATING IF WE ARE RECEIVING THE PAYMENTS BEFORE THE END OF THE MONTH IN WHICH IT THEY ARE DUE PRE-FORECLOSURE (SHORT SALE) OR DEED IN LIEU OF FORECLOSURE: * Credit Reporting: Please note that we will report to the credit bureaus that a short sale or deed in lieu was accepted by W.C.D.A. after proper documents are filed. AS A RESULT, THIS WILL ADVERSELY AFFECT YOUR CREDIT SCORE, PARTICULARLY IF YOU ARE CURRENT ON YOUR MORTGAGE OR OTHERWISE HAVE A GOOD CREDIT SCORE. * Borrower must be in default before W.C.D.A. can consider a Pre-foreclosure Sale (short sale) or Deed In Lieu of foreclosure. * On FHA loans this will be reported on CAIVRS. Borrower(s) will not be able to obtain a FHA loan for a minimum of three (3) years. * On FHA loans Borrower(s) may be subject to a cash contribution. * Please be aware that in the event that WCDA forgives your debt, or any portion of it, there may be tax consequences to you as a result. You should consult with your tax advisor about any such potential tax consequences. WCDA does not provide any tax advice so we cannot answer any questions about tax consequences that you may have. SERVICE MEMBERS * All Service members should obtain guidance from your employer regarding the potential impact on security clearance and employment