1. "It's urgent to contact your lender as soon as you're behind or feel you might fall behind. That's the biggest mistake people make, they don't call the lender. They have the furniture people or the car people call but the lenders don't call. So people make the wrong decisions." Vincent Quayle, Executive Director of St. Ambrose Housing Aid Center in Baltimore, Maryland (www.stambros.org).
2. At St. Ambrose Housing Aid Center, Mr. Quayle knows from experience that if the loan can be restructured, they mediate with the lender. At their center they have lawyers on staff as well as counselors. "We have lawyers that can review their loan documents and intervene with lenders: a call from a lawyer has more weight than a call from a counselor," said Mr. Quayle.
3. Get everything in writing. Bianca Lopez, Blanca Lopez, Director of the Neighborhood Preservation Company Program for Human Development Services of Westchester, New York says that is critical: "Always ask for a person's fax number and their extension. Whatever agreement there is, put it in writing and fax it to them. Then keep a copy for yourself. Right now it may be just one person, but lenders are handling hundreds and hundreds of cases and it is too easy for a single case to fall between cracks," said Lopez. She stresses. "Time is of the essence: time is money and time is also your credit rating."
4. When looking for a mortgage counselor, it is confusing to know where to go. Ms. Lopez explains that some Nonprofits are certified by HUD (U.S. Department of Housing and Urban Development), but that this is all based on having the proper documentation and who the organization serves and what they do. Not being certified is not necessarily a bad thing. "Most of the well-known organizations in our county are not HUD-approved but that does not make them corrupt," said Ms. Lopez. Want to double-check on someone? Lopez suggests calling your state attorney general's charity bureau to "confirm if they are legit."
5. "If they have a court date, go to the court date and don't be scared. So many people are going through this and it is not the end of the world. People should be thankful that their families are okay, that they re okay, it is not the end of the world. Take into consideration that it is just another problem to get over and that you learn from it. That's why mortgage counseling helps, it is a one on one session - you just have to face it and address it as much as possible. But it is not the end of the world," said Lopez.
Friday, April 25, 2008
Many Not-For-Profit Agencies Help Families Too
If you are behind on one mortgage payment or think you will be behind and this is a one time thing - consider contacting Modest Needs (www.modestneeds.org). Modest Needs is a not-for-profit organization that helps those who are above the poverty line that don't qualify for other types of assistance. Keep in mind that Modest Needs only provides one-time assistance - many of their clients come to them because of an unexpected bill. "We help people who are normally self-sufficient who need help with a small one-time expense," said Huriya Jabbar, Vice President of Program Services at Modest Needs.
The Homeownership Preservation Foundation is a very useful organization for those with mortgage concerns. You can actually speak to a mortgage counselor twenty four hours a day. So if you are having trouble sleeping because of your mortgage problem - get up and give them a call at 1-888-955-HOPE. You can also put in an online counseling session at their website (www.955hope.com). They provide housing counseling at no charge to the homeowner. They will review your mortgage and current obligations and help you create a budget and see how you can prevent foreclosure. They will also work with your lender. The foundation also has local offices in many areas, so you can meet with a counselor face-to-face. They don't offer funding or grants, but they have the ability to help you find local agencies in your area that do assist with funding and grants. You can speak to a counselor anytime for as long as you need.
Calling your local United Way office is also a great way to find resources. In many communities you can simply call "211" to reach the United Way's 211 Call Center (www.211.org). This informative call center will help you find resources in your area. Explain to them that you are looking for organizations that help people with their mortgage concerns and they will typically give you a list of organizations. When we called our local 211 office, we were given three different organizations to call.
Seniors may find the AARP guide "Borrower's Guide to Home Loans" quite helpful. They can get a copy by making a request at the website: www.aarp.org.
The Homeownership Preservation Foundation is a very useful organization for those with mortgage concerns. You can actually speak to a mortgage counselor twenty four hours a day. So if you are having trouble sleeping because of your mortgage problem - get up and give them a call at 1-888-955-HOPE. You can also put in an online counseling session at their website (www.955hope.com). They provide housing counseling at no charge to the homeowner. They will review your mortgage and current obligations and help you create a budget and see how you can prevent foreclosure. They will also work with your lender. The foundation also has local offices in many areas, so you can meet with a counselor face-to-face. They don't offer funding or grants, but they have the ability to help you find local agencies in your area that do assist with funding and grants. You can speak to a counselor anytime for as long as you need.
Calling your local United Way office is also a great way to find resources. In many communities you can simply call "211" to reach the United Way's 211 Call Center (www.211.org). This informative call center will help you find resources in your area. Explain to them that you are looking for organizations that help people with their mortgage concerns and they will typically give you a list of organizations. When we called our local 211 office, we were given three different organizations to call.
Seniors may find the AARP guide "Borrower's Guide to Home Loans" quite helpful. They can get a copy by making a request at the website: www.aarp.org.
Help From Your State
Some states are even offering cash loans to help families get back on their feet. Even if you don't live in an area that does this yet, be encouraged and keep your eyes open - as a program could be opening up soon!
Live in Pennsylvania? Get 24 months of your mortgage or $60,000 loan!
Many are saying it's great to live in Pennsylvania! This wonderful state has a forward-thinking program to help keep people from foreclosure. HEMAP (link: http://www.phfa.org/consumers/homeowners/hemap.aspx) is the Homeowners' Emergency Mortgage Assistance Program. This program was created by Act 91 in 1983. It is the only one of its type in the U.S.A., but hopefully other government officials will be inspired by its success. HEMAP helps people who through no fault of their own are unable to make their mortgage payments. Pennsylvania residents are eligible for help for up to 24 months or for a maximum of $60,000 loan. What a great way to help families in Pennsylvania! Contact: Pennsylvania Housing Finance Agency 211 North Front Street, Harrisburg, Pennsylvania 17101-1406; 800-342-2397
Application: www.phfa.org/about/contact/telephonedirectory.aspx
Income: $10,000 - $1,000,000
Seattle residents can get $5,000 loan to pay their mortgage
In January 2008, the mayor of Seattle Greg Nickels started a new initiative to help Seattle families. Low-income families that are facing foreclosure can be eligible for a $5,000 loan. Seattle has $200,000 set aside for these special loans. The loan is combined with mortgage counseling from two local agencies: Urban League (www.urbanleague.org) and Solid Ground Mortgage Hotline: http://www.solid-ground.org/Pages/Default.aspx; 206-461-3200.
Massachusetts Will Help You Refinance
MassHousing helps low to moderate income Massachusetts residents purchase homes at below market lending rates. They have begun a Home Saver Foreclosure Prevention Program which helps borrowers who are unable to repay their mortgage. You cannot be in foreclosure or more than 30 days delinquent to use this program, and you must be employed. The first step is to contact the Homeowerneship Preservation Foundation at 888-995-HOPE and tell them your story. They will refer you to a local counseling agency which is mandatory for this program. Once you have completed counseling, you will be provided with a list of lenders who will help you refinance your loan. Contact: MassHousing, One Beacon St., Boston, MA 02108; 617-854-1000; 888-995-HOPE; www.masshousing.com and www.995hope.org
Application: www.masshousing.com
Income: $10,000 - 1,000,000
North Carolina Offers Help
Those who are facing foreclosure can contact the HOPE Hotline at 888-995-HOPE, who will provide counseling and review their situation. The state has a program that provides $300,000 in seed money to reimburse counselors who are able to help prevent unnecessary foreclosures for North Carolinians who call the hotline, with more reimbursement going to counselors who are able to help homeowners keep their homes. Contact: North Carolina Foreclosure Help, NC Commissioner of Banks, 316 W. Edenton St., Raleigh, NC 27603; 888-995-HOPE; www.ncforeclosurehelp.org
Application: www.ncforeclosurehelp.org
Income: $10,000 - 1,000,000
Help For Ohio Residents
The Ohio NeighborWorks Foreclosure Prevention Initiative offers a variety of programs to help residents facing foreclosure. Contact the HOPE Hotline at 888-995-HOPE and they will do the initial assessment and refer you to counselors in your area who can help. They offer the Ohio Home Rescue Fund which is a loan of up to $5,000 to help you get your mortgage back on track, but you must agree to mortgage counseling and have the ability to maintain the home. The Cuyahoga County Foreclosure Prevention Program provides everything from budgeting advice to refinance counseling to help homeowners keep their homes. Cuyahoga County residents can call 211 or visit www.dontborrowtroublecc.org for more information.
In addition the Ohio Housing Finance Agency provides an Opportunity Loan Refinance Program for those who have adjustable rate mortgage so they can refinance to a 30-year fixed rate mortgage. You also may be reimbursed for any out-of-pocket expenses for an appraisal, credit report, or other costs. There are income limits which vary county to county in Ohio, but can go as high as $80,750. To learn more call the Ohio Housing Finance Agency at 888-362-6432 or online at www.ohiohome.org
Contact: Ohio Housing Finance Agency, 57 E. Main St., Columbus, OH 43215; 614-466-7970; 888-362-6432; www.ohiohome.org
Application: www.ohiohome.org
Income: $10,000 - 1,000,000
Maryland Residents Can Get Help
Maryland Department of Housing and Community Development offers several different programs to help those who are in danger of losing their homes. The Lifeline Refinance Mortgage Program provides a refinancing option to Marylanders who may be facing difficulties after financing their homes with adjustable rate or other unfavorable mortgages, or with mortgages that no longer fit their financial situation. In addition there is a Bridge to HOPE Loan Program that provides short-term relief to maintain homeownership. Borrowers can receive a loan of up to $15,000 to pay delinquent mortgage payments, taxes, and other arrearages. This is a deferred loan that is repayable at the time the house is sold or transferred. For this program you must be referred by a housing counseling agency who will develop an action plan with you. There are income requirements for both programs that vary county to county, but can go as high as $132,300. Contact: Maryland Department of Housing and Community Development, 100 Community Place, Crownsville, MD 21033; 877-462-7555; www.mdhope.org
Application: www.mdhope.org
Income: $10,000 - 1,000,000
Live in Pennsylvania? Get 24 months of your mortgage or $60,000 loan!
Many are saying it's great to live in Pennsylvania! This wonderful state has a forward-thinking program to help keep people from foreclosure. HEMAP (link: http://www.phfa.org/consumers/homeowners/hemap.aspx) is the Homeowners' Emergency Mortgage Assistance Program. This program was created by Act 91 in 1983. It is the only one of its type in the U.S.A., but hopefully other government officials will be inspired by its success. HEMAP helps people who through no fault of their own are unable to make their mortgage payments. Pennsylvania residents are eligible for help for up to 24 months or for a maximum of $60,000 loan. What a great way to help families in Pennsylvania! Contact: Pennsylvania Housing Finance Agency 211 North Front Street, Harrisburg, Pennsylvania 17101-1406; 800-342-2397
Application: www.phfa.org/about/contact/telephonedirectory.aspx
Income: $10,000 - $1,000,000
Seattle residents can get $5,000 loan to pay their mortgage
In January 2008, the mayor of Seattle Greg Nickels started a new initiative to help Seattle families. Low-income families that are facing foreclosure can be eligible for a $5,000 loan. Seattle has $200,000 set aside for these special loans. The loan is combined with mortgage counseling from two local agencies: Urban League (www.urbanleague.org) and Solid Ground Mortgage Hotline: http://www.solid-ground.org/Pages/Default.aspx; 206-461-3200.
Massachusetts Will Help You Refinance
MassHousing helps low to moderate income Massachusetts residents purchase homes at below market lending rates. They have begun a Home Saver Foreclosure Prevention Program which helps borrowers who are unable to repay their mortgage. You cannot be in foreclosure or more than 30 days delinquent to use this program, and you must be employed. The first step is to contact the Homeowerneship Preservation Foundation at 888-995-HOPE and tell them your story. They will refer you to a local counseling agency which is mandatory for this program. Once you have completed counseling, you will be provided with a list of lenders who will help you refinance your loan. Contact: MassHousing, One Beacon St., Boston, MA 02108; 617-854-1000; 888-995-HOPE; www.masshousing.com and www.995hope.org
Application: www.masshousing.com
Income: $10,000 - 1,000,000
North Carolina Offers Help
Those who are facing foreclosure can contact the HOPE Hotline at 888-995-HOPE, who will provide counseling and review their situation. The state has a program that provides $300,000 in seed money to reimburse counselors who are able to help prevent unnecessary foreclosures for North Carolinians who call the hotline, with more reimbursement going to counselors who are able to help homeowners keep their homes. Contact: North Carolina Foreclosure Help, NC Commissioner of Banks, 316 W. Edenton St., Raleigh, NC 27603; 888-995-HOPE; www.ncforeclosurehelp.org
Application: www.ncforeclosurehelp.org
Income: $10,000 - 1,000,000
Help For Ohio Residents
The Ohio NeighborWorks Foreclosure Prevention Initiative offers a variety of programs to help residents facing foreclosure. Contact the HOPE Hotline at 888-995-HOPE and they will do the initial assessment and refer you to counselors in your area who can help. They offer the Ohio Home Rescue Fund which is a loan of up to $5,000 to help you get your mortgage back on track, but you must agree to mortgage counseling and have the ability to maintain the home. The Cuyahoga County Foreclosure Prevention Program provides everything from budgeting advice to refinance counseling to help homeowners keep their homes. Cuyahoga County residents can call 211 or visit www.dontborrowtroublecc.org for more information.
In addition the Ohio Housing Finance Agency provides an Opportunity Loan Refinance Program for those who have adjustable rate mortgage so they can refinance to a 30-year fixed rate mortgage. You also may be reimbursed for any out-of-pocket expenses for an appraisal, credit report, or other costs. There are income limits which vary county to county in Ohio, but can go as high as $80,750. To learn more call the Ohio Housing Finance Agency at 888-362-6432 or online at www.ohiohome.org
Contact: Ohio Housing Finance Agency, 57 E. Main St., Columbus, OH 43215; 614-466-7970; 888-362-6432; www.ohiohome.org
Application: www.ohiohome.org
Income: $10,000 - 1,000,000
Maryland Residents Can Get Help
Maryland Department of Housing and Community Development offers several different programs to help those who are in danger of losing their homes. The Lifeline Refinance Mortgage Program provides a refinancing option to Marylanders who may be facing difficulties after financing their homes with adjustable rate or other unfavorable mortgages, or with mortgages that no longer fit their financial situation. In addition there is a Bridge to HOPE Loan Program that provides short-term relief to maintain homeownership. Borrowers can receive a loan of up to $15,000 to pay delinquent mortgage payments, taxes, and other arrearages. This is a deferred loan that is repayable at the time the house is sold or transferred. For this program you must be referred by a housing counseling agency who will develop an action plan with you. There are income requirements for both programs that vary county to county, but can go as high as $132,300. Contact: Maryland Department of Housing and Community Development, 100 Community Place, Crownsville, MD 21033; 877-462-7555; www.mdhope.org
Application: www.mdhope.org
Income: $10,000 - 1,000,000
The Government Wants to Help Those Defending Our Country!
If you are a reservist, guardsman or a military personnel you may be eligible for protection from foreclosure by the Servicemembers Civil Relief Act. This act was known earlier as The Soldiers' and Sailors' Civil Relief Act of 1940. You must be an active duty military personnel with a mortgage obligation that existed before you were called to your active duty. With this act the mortgage lender may not foreclose while you are on active duty, or even within 90 days after military service without court approval. To get information about the SCRA, servicemembers should contact their unit judge advocate or installation legal assistance officer. Dependents of servicemembers can also contact the local military legal assistance offices where they are currently living.
Your Mortgage is a Concern and the U.S. Government Wants To Help
One of your first stops to go for help should be the government's U.S. Department of Housing and Urban Development, better known as HUD (www.hud.gov). They offer many services but the one that will interest you most now is their referral service to a HUD-approved or certified mortgage counseling agency. Call 1-800-569-4287 (TTY 1-800-877-8399). You can also get a referral from their website by visiting here: http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm. Most counseling services are free, some may ask for a modest fee to help pay for obtaining your credit information from the credit bureaus to send to lenders.
Another great place to look for assistance in your area is to visit your State Attorney General's website. To find your state Attorney General's website, hit your favorite search engine and type in "your state Attorney General" and it should come right up! Now each State Attorney General is going to set up their website a little differently, but putting into the search the word "mortgage" should bring up any information on the website related to this topic. If you have trouble finding it on their website, call the State Attorney General's office and ask them where you can find mortgage counselors they would recommend. Each State Attorney General does consumer advocacy, and this topic is certainly related. A complete listing is located at the end of this document.
Another great place to look for assistance in your area is to visit your State Attorney General's website. To find your state Attorney General's website, hit your favorite search engine and type in "your state Attorney General" and it should come right up! Now each State Attorney General is going to set up their website a little differently, but putting into the search the word "mortgage" should bring up any information on the website related to this topic. If you have trouble finding it on their website, call the State Attorney General's office and ask them where you can find mortgage counselors they would recommend. Each State Attorney General does consumer advocacy, and this topic is certainly related. A complete listing is located at the end of this document.
Free Help When You Can't Pay Your Mortgage
Not being able to pay your mortgage is scary stuff. Unfortunately, there are many Americans who are in this position today - or may be facing it coming down the road in a very short while.
There are resources available to help you with your mortgage concerns - sometimes even offering you a generous loan to help tide you over for awhile. As this issue concerns more and more families hopefully even more resources will become available. Some of the agencies we spoke to are expecting positive change to help them assist even more people. One agency even refused to be listed in this article, saying that it was expecting an infusion of assistance and didn't want to be listed until it had this to offer people.
All of the experts agreed on one thing if you have a mortgage problem - or even if you think you are going to have a mortgage problem: face it early. "If the client can ask for help on day one instead of day twenty it can make a difference, there can be more possibilities for assistance," said Bianca Lopez, Director of the Neighborhood Preservation Company Program for Human Development Services of Westchester, New York (www.hdsw.org). So being proactive is valuable. The options you will have available to you at the very start are often the very best. No one likes thinking they have a serious problem. But it is like they say: the number one rule of realizing that you are in a hole? Stop digging!
There are resources available to help you with your mortgage concerns - sometimes even offering you a generous loan to help tide you over for awhile. As this issue concerns more and more families hopefully even more resources will become available. Some of the agencies we spoke to are expecting positive change to help them assist even more people. One agency even refused to be listed in this article, saying that it was expecting an infusion of assistance and didn't want to be listed until it had this to offer people.
All of the experts agreed on one thing if you have a mortgage problem - or even if you think you are going to have a mortgage problem: face it early. "If the client can ask for help on day one instead of day twenty it can make a difference, there can be more possibilities for assistance," said Bianca Lopez, Director of the Neighborhood Preservation Company Program for Human Development Services of Westchester, New York (www.hdsw.org). So being proactive is valuable. The options you will have available to you at the very start are often the very best. No one likes thinking they have a serious problem. But it is like they say: the number one rule of realizing that you are in a hole? Stop digging!
Tuesday, April 22, 2008
A Mortgage Fraud Scheme Worthy of Godzilla
Leaving a trail of devastation worthy of Godzilla, a mortgage fraud conspiracy of gargantuan proportions has wreaked havoc on the city of Indianapolis as block after block was left in near-apocalyptic ruins.
Although mortgage fraud schemes are sometimes widespread and frequently costing tens of millions of dollars, rarely has so much damage been done in so small an area.
According to authorities, six men were responsible for almost 300 foreclosures on the east and west sides of the city, leaving many of the homes boarded up or burned out.
Authorities say the scheme dramatically brought down the value of neighboring properties and the foreclosed homes that were abandoned have subsequently attracted less “white-collar” criminal activity.
The toll of such fraud is not only financial, but often bears an emotional toll on those living in the neighborhoods as the quality of life diminishes with the deterioration of the community.
Brian Beach, Omar Dillard, Preston Forte III, Patrick Ladarius, Mehran Valiyi and Marcus Ward have each been charged with welfare fraud and felony theft for the alleged scheme.
The ages of all six of the men range from mid-thirties to early forties.
Investigators say the conspirators would fraudulently purchase homes and fail to pay the mortgages while selling some of the homes at inflated prices.
Over five years, the six men allegedly took out almost $38 million in mortgages using non-existent companies they created.
No mortgage payments were made on any of the homes they bought, say investigators, driving many of the properties into foreclosure.
To keep from having to pay the judgment on the foreclosure, the conspirators allegedly filed for bankruptcy to create a seemingly endless circle of fraud.
Investigators claim that the men sold some of the properties to potential investors after misrepresenting the actual value of the homes.
The investors then would borrow money from banks, authorities say, and then purchase the homes at the inflated prices.
Some of investors were unable to keep up with their mortgage payments and found they were unable to sell the homes at anything near the inflated prices they paid.
According to investigators, the fraud scheme primarily took place from 2004 to 2007.
Valiyi and Beach alone stand accused of obtaining 397 fraudulent subprime loans through fraudulent applications.
The six men also are charged with fraudulently obtaining $283,000 in federal rent assistance money for tenants at dilapidated homes below federal quality standards.
Although four of the men have already been arrested, warrants have been issued for the arrest of Ladarius and Forte, who remain at-large.
Although mortgage fraud schemes are sometimes widespread and frequently costing tens of millions of dollars, rarely has so much damage been done in so small an area.
According to authorities, six men were responsible for almost 300 foreclosures on the east and west sides of the city, leaving many of the homes boarded up or burned out.
Authorities say the scheme dramatically brought down the value of neighboring properties and the foreclosed homes that were abandoned have subsequently attracted less “white-collar” criminal activity.
The toll of such fraud is not only financial, but often bears an emotional toll on those living in the neighborhoods as the quality of life diminishes with the deterioration of the community.
Brian Beach, Omar Dillard, Preston Forte III, Patrick Ladarius, Mehran Valiyi and Marcus Ward have each been charged with welfare fraud and felony theft for the alleged scheme.
The ages of all six of the men range from mid-thirties to early forties.
Investigators say the conspirators would fraudulently purchase homes and fail to pay the mortgages while selling some of the homes at inflated prices.
Over five years, the six men allegedly took out almost $38 million in mortgages using non-existent companies they created.
No mortgage payments were made on any of the homes they bought, say investigators, driving many of the properties into foreclosure.
To keep from having to pay the judgment on the foreclosure, the conspirators allegedly filed for bankruptcy to create a seemingly endless circle of fraud.
Investigators claim that the men sold some of the properties to potential investors after misrepresenting the actual value of the homes.
The investors then would borrow money from banks, authorities say, and then purchase the homes at the inflated prices.
Some of investors were unable to keep up with their mortgage payments and found they were unable to sell the homes at anything near the inflated prices they paid.
According to investigators, the fraud scheme primarily took place from 2004 to 2007.
Valiyi and Beach alone stand accused of obtaining 397 fraudulent subprime loans through fraudulent applications.
The six men also are charged with fraudulently obtaining $283,000 in federal rent assistance money for tenants at dilapidated homes below federal quality standards.
Although four of the men have already been arrested, warrants have been issued for the arrest of Ladarius and Forte, who remain at-large.
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