How can The IMPACT! Group help me?
A housing counselor will discuss the options which are available to resolve your mortgage problem and will help you to determine your best strategy. The counselor can call the lender on your behalf to negotiate arrangements to catch up your payments or can request additional time for you to get back on your feet so that you can send payments in the future. Your counselor can also assist you in completing any paperwork sent to you by your lender and compiling any documentation that needs to be sent in.
The counselor will also assist you in determining how to handle your other bills and living expenses during this difficult time. Referrals to other community resources can also be made to assist you.
Is this the same as Consumer Credit Counseling Services?
We help you to assess your financial situation and we make recommendations that might improve it. We also discuss money management techniques. However, we do not contact your other creditors to make payment arrangements - just your mortgage company. This is not a debt management plan. You do not send us money each month to pay your bills.
I have one mortgage payment but my lender will not accept it. Why?
Lenders are required to service loans according to guidelines given to them by the investor and the mortgage insurance company. Each type of mortgage has different guidelines. Your counselor can explain to you why the lender is refusing to accept your mortgage payment and can assist you in making arrangements that are acceptable to the lender.
Do not get discouraged. Do not spend the money to catch up other bills. Continue to hold your mortgage payment until you can meet with a counselor.
My lender put me on a payment plan. I was able to make some of the payments, but cannot make the payment for this month. What can I do?
The lender may not have reviewed your overall financial situation before placing you on this payment plan. Or your financial situation may have changed after you agreed to the payment plan. Your counselor will review your current financial situation and will discuss with you the options which are available to help you. Once you have agreed on a strategy, the counselor can call the lender, explain why you could not complete the payment plan, and can propose arrangements that are appropriate to your situation.
Can you help me to refinance my mortgage?
It is very difficult to refinance a mortgage when the payments are behind. A new lender wants to see 12 months of clean credit history, particularly on the previous mortgage payments.
Can I sell my home even though I am behind on the payments?
Yes, you are still the owner - you can sell the home. However, you must pay off the mortgage loan, including any delinquent payments, late charges, and fees, at closing.
If your home has depreciated in value OR if you have a very new loan and cannot pay off the entire mortgage balance from the net proceeds, you should seek permission from the lender to do a Short Sale. A Short Sale allows you to sell the home at its fair market value and the lender agrees to accept the net proceeds from the sale, even though it will not be enough to pay off the mortgage. The Short Sale preserves your credit and saves your lender the cost of foreclosing on your property.
Will I have time to resolve my mortgage problem before the lender forecloses?
Foreclosure laws are different in every state. In general, with FHA and VA loans, the home does not usually go to foreclosure sale until the account is 6 months behind. On Conventional-insured (PMI) loans, the foreclosure sale may take place when the account is 3-5 months behind. The foreclosure time for loans serviced by finance companies can be much shorter and can vary from 2-4 months.
It is important to see help as soon as possible if you are unable to make your mortgage payments.
Should I just go ahead and file bankruptcy?
Filing Chapter 13 or Chapter 7 should be your last resort. Depending on your financial situation and the amount of equity in your home, bankruptcy may or may not save your home from foreclosure.
There are options available in traditional mortgages (FHA, VA, and Conventional-insured) to assist homeowners who are temporarily unable to make their mortgage payments. You will usually not receive any information about these programs until you are 2 -3 months behind. Your lender will send you a letter or brochure describing the options available and the paperwork necessary to apply for them. If you file Chapter 13 or Chapter 7, the lender cannot communicate with you and cannot offer you this assistance.
