Tools for Tough Times

Foreclosure

What Happens if I’m Behind in Mortgage Payments?

Foreclosure may occur. This means that your lender can repossess your house. You may be forced to move out of your house. This can happen after one missed payment but often doesn’t occur until three payments are missed.

What Is Foreclosure?

Foreclosure is a legal action that allows the lender to take your house from you.  In foreclosure the lender sues the borrower (you) who has failed to make mortgage payments. The lender seeks a court order to sell the house so that money can be raised to pay the borrowers debt to the lender. After foreclosure you no longer have a home and may not receive any money from the sale.

Housing Urban Development (HUD) TIPS FOR AVOIDING FORECLOSURE:

1.  Don't ignore the problem.

The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2.  Contact your lender as soon as you realize that you have a problem. 

Lenders do not want your house. They have options to help borrowers through difficult financial times. Call your lender or the company servicing the loan as soon as possible and explain your circumstances.  If possible try to circumvent the collection agency and go straight to the lenders “Loss Mitigation” or “Foreclosure Prevention” department. Be prepared to provide them with financial information such as your monthly income and expenses. Ask them to send you a “work out” package to update your financial information. If you qualify for a work out plan many options may be available to you. 

3.  Open and respond to all mail from your lender. 

The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems.  Later mail may include important notice of pending legal action.  Your failure to open the mail will not be an excuse in foreclosure court.

4.  Know your mortgage rights. 

Find your loan documents and read them so you know what your lender may do if you can't make your payments.  Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office. 

5.  Understand foreclosure prevention options. 

Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at http://www.fha.gov/

6.  Contact a HUD-approved housing counselor. 

The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide.  Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.

Local Housing Approved Counseling Services (some programs have income requirements)

Greenville County Human Relations Commission
301 University Ridge, Suite 1600 Greenville, SC 29601
P: (864) 467-7095 F: (864) 467 5965 ssmathers@greenvillecounty.org
www.greenvillecounty.org/Human_Relations

  • Fair Housing Assistance
  • Home Equity Conversion Mortgage Counseling
  • Homebuyer Education Programs
  • Loss Mitigation
  • Mortgage Delinquency and Default Resolution Counseling
  • Postpurchase Counseling
  • Predatory Lending
  • Prepurchase Counsing
  • Renters Assistance


Sunbelt Human Advancement Resources, INC
1200 Pendleton St. PO Box 10204 Greenville, SC 29611
P: (864) 269-0700-230 F: (864) 295-6151
wcrosby@sharesc.org
www.sharesc.org

  • Loss Mitigation
  • Mortgage Delinquency and Default Resolution Counseling
  • Prepurchase Counsing
  • Renters Assistance

Urban League of the Upstate
15 Regency Hill Dr. PO Box 10161 Greenville, SC 29607
P: (864) 244-3862-4119
F:  (864) 244-6134
jvernon@urbanleagueoftheupstate.org
www.urbanleagueoftheupstate.org

  • Home Equity Conversion Mortgage Counseling
  • Homebuyer Education Programs
  • Marketing and Outreach Initiatives
  • Mortgage Delinquency and Default Resolution Counseling
  • Postpurchase Counseling
  • Predatory Lending
  • Prepurchase Counsing
  • Renters Assistance

7.  Prioritize your spending.

After healthcare, keeping your house should be your first priority.  Review your finances and see where you can cut spending in order to make your mortgage payment.  Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8.  Use your assets. 

Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income?  Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home. 

9.  Avoid foreclosure prevention companies. 

You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender.  While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.

10.  Don't lose your house to foreclosure recovery scams! 

When your home goes into foreclosure it is filed with the court and this becomes public record. As a result, you may receive calls or mail from solicitors trying to get you to refinance your mortgage, pay fees for help, or sell your home to them, then pay rent.  Beware of all of these types of scams! For advice on how to avoid scams check out Don’t Borrow Trouble www.dontborrowtrouble.com, a national anti-predatory lending and foreclosure avoidance campaign that combines education and empowerment – teaching consumers to protect their homes and finances.

If You are in Foreclosure...

...you still have options.  Don't give up.  Contact SC Legal Services (Legal Aid) if you have been sued or you have received a summons.

SC Legal Services (Legal Aid)
701 South Main St.
Greenville, SC  29601
(864) 679-3232 or (800) 763-4825
www.sclegal.org

Additional Resources

Don’t Borrow Trouble Campaign
www.dontborrowtrouble.com

  • foreclosure prevention
  • advice on avoiding predatory lending
  • advice on foreclosure recovery scams

Hope Now
888-995-HOPE www.hopenow.com

  • in-depth debt management
  • credit counseling
  • foreclosure counseling

 

MakingHomeAffordable.gov 
www.makinghomeaffordable.gov

  • Self Assessment Tools
  • Calculators to Help Borrowers Determine Eligibility
  • Payment Reductions under Obama Administration's Refinancing and Loan Modification Program

Free Legal Assistance
South Carolina Legal Services (Legal Aid)
Serving: Anderson, Greenville, Oconee, and Pickens Counties
701 South Main St. Greenville SC 29601 
P: 864-679-3232 or 800-763-4825 
F: 864-679.3239
www.sclegal.org


Foreclosure Task Force Collaborative

United Way of Greenville County is committed to providing leadership and support to our community’s housing crisis. We have partnered with over 15 local agencies to form a Foreclosure Prevention Collaborative. Together our mission is:

  • To preserve the integrity of homeownership
  • To reduce the number of foreclosures and avoid foreclosures
  • To encourage and maintain an effective use of community resources
  • To target owner occupied primary residences/responsible homeowners
  • To allow greater access to information resources and referral


Our strategy includes a comprehensive plan to prevent, treat and provide relief before, during, and after the foreclosure process.  Here are a few of our actions:

  • 2-1-1 referral system provides immediate support to someone looking for assistance and answers during the foreclosure process.
  • “Tools for Tough Times” addition to website (www.unitedwaygc.com/toolsfortoughtimes
  • “Mortgage Rescue Fund” a local emergency assistance fund managed by the Greenville Housing Fund of $75,000-$100,000 for emergency assistance to homeowners. This fund is intended to help worthy homeowners who are up to 2 months behind restructure their mortgage in order to save that asset.
  • Case Management – Provided by the Human Relations Commission; provides support and referrals to community partners for counseling, loan mitigation and restructuring, and legal services.
  • Tough Times Toolkit—a resource guide provided to Greenville County citizens that provide quick reference to local agencies that provide support and services.

Partner Agencies and Organizations

  • Greenville County Human Relations Commission
  • Greenville Housing Fund
  • City of Greenville
  • Greenville County Redevelopment Authority
  • The Urban League of the Upstate
  • Nehemiah Corporation
  • United Way of Greenville County
  • SC Legal Services
  • Compass of Carolina
  • GGAR (short sales)
  • UMLA (Upstate Mortgage Lenders Association) (loan modification/short sales)
  • Upstate Homeless Coalition  (housing counseling)
  • GAIHN
  • ESC (employment security commission)

Housing Counseling Training

Neighborworks Center for Homeownership Education and Counseling/Foreclosure Counseling Training Web site

Foreclosure Intervention and Default Counseling

Training Calendar for 2009


For additional resources or more information, contact United Way 211.