Resources to Turn to When You Fear Foreclosure

The United States Joint Economic Committee recently reported that New Jersey ranked 13th in the nation in foreclosures. If you are among this group of citizens, you are probably looking for solutions. Fortunately, we have some to offer.

All of the experts agree on the following tips:

• Don’t ignore the situation. You know if you are having a problem finding the money to pay your mortgage. The sooner you face the situation, the better off you will be. Open and respond to the mail you receive from your financial institution. Pick up the phone when your lender calls, or better still – call your lender. The more payments you miss, the harder it will be to save your home.



• Call a counselor who knows how the system works. If you are unable to work out a solution with your lender, it is time to call a financial counselor who knows all about the programs and resources that are available to help people in your situation. Below you will find information on free counseling resources.



• Carefully consider your spending habits, your current assets and your capabilities. Look for solutions. Rather than letting yourself get bogged down in desperation, think about actions that you can begin taking today that might ease your financial situation. Start eliminating expenses that are optional and put that money towards your mortgage. Ask yourself if you have assets (a whole life insurance policy, a car, a boat, etc.) that could be sold to raise the money you need to save your home. Explore the possibility of someone in your household taking on another job to bring in extra income. While none of these may bring in enough money to solve the problem you face, actions like these will serve as proof to your lender that you are doing your best to find solutions.

Organizations and Programs
There are people who would like to help you find a solution. They work in various agencies and organizations throughout the state and every day they talk with people in your situation. Get them on your team – contact them today.

• Homeownership Preservation Foundation is dedicated to helping homeowners avoid foreclosure. This is an independent non-profit organization that provides HUD-approved counselors dedicated to helping homeowners. All services are free. Counselors are available 24 hours a day, seven days a week, and are trained to set up an action plan that is specific to your situation. Call 888.995.HOPE or visit www.995hope.org



• NJ HOPE - The New Jersey Home Ownership Preservation Effort is a voluntary public/private alliance of government agencies, non-profit organizations, and financial institutions, committed to enhancing home ownership preservation by raising consumer awareness of available mortgage products and funding; providing increased access to credit and loan counseling for those who need it; and providing temporary assistance to consumers who are in immediate danger of foreclosure. The NJ HOPE Web site www.state.nj.us/dobi/njhope/alliance.html is filled with resources and information including, but certainly not limited to, the following:
  
  • A listing of financial counseling organizations, licensed debt adjusters, HUD Approved Housing Counselors in NJ www.state.nj.us/dobi/njhope/exhibitb.pdf
  • Resources available through the alliance’s banking partners www.state.nj.us/dobi/njhope/exhibita.pdf
  • Borrower Assistance Programs www.state.nj.us/dobi/njhope/assistanceprograms.html
  • Foreclosure Guidance which includes a remarkably comprehensive series of pages focused on how to avoid foreclosure; foreclosure recovery programs and foreclosure education, tips and even success stories www.state.nj.us/dobi/njhope/foreclosure.html
  • Additional Web links that will take you to sites that resources, including agencies and programs, that are available within the state www.state.nj.us/dobi/njhope/resources.html
  
  
• Neighborhood Assistance Corporation of America (NACA) This national non-profit community advocacy and housing services organization offers mortgage refinance programs. www.naca.com



• U.S. Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA) provides comprehensive information about how to avoid foreclosure with special emphasis on alternative arrangements that you may be able to reach with your lender. Additional solutions are offered for people facing foreclosure due to money problems, disaster events, or military commitments. http://portal.hud.gov/portal/page?_pageid=33,717348&_dad=portal&_schema=PORTAL Here you will find information on such programs as:
  
  
  • FHASecure, a program designed to assist people who are in danger of foreclosure due to recent or imminent mortgage reset http://portal.hud.gov/portal/page?_pageid=33,717446&_dad=portal&_schema=PORTAL
  • Servicemembers Civil Relief Act (SCRA), a program to assist active duty military personnel who had mortgage commitments before enlisting or being called to active duty. http://portal.hud.gov/portal/page?_pageid=33,717388&_dad=portal&_schema=PORTAL

As you work to find a solution to your housing difficulties, you may find it helpful to have this comprehensive glossary of mortgage terms www.state.nj.us/dobi/hoa03define.htm on hand for reference purposes.

Need to talk things out with someone who cares and will help you to find solutions? Call 2-1-1 – we are here to help - 24 hours a day, seven days a week.