Monday, June 06, 2011

Foreclosure Prevention

NKCDC may be able to assist you to prevent foreclosure. We will walk you through the steps to keep your home. Below is some information on steps which may be necessary based on the state of foreclosure. We encourage you to act immediately if you receive any notices.

Deliquency Notices

Act 6 Notice/Notice of Intention to Foreclosure
Notice is sent when you are 60 days behind in your mortgage payments. Call your mortgage company to try to make a repayment plan (forebearance agreement). Sometimes this notice is attached to the Act 91 Notice.

Act 91 Notice
Notice is sent when you are three (3) months deliquent, advising you to apply for a HEMAP loan.

Homeowners Emergency Mortgage Assistance Program (HEMAP)
Administered by the Pennsylvania Housing Finance Assistance Agency. Homeowner must be at least 90 days deliquent on their mortgage payment and have received an Act 91 Notice. Default must have occurred through not fault of the homeowner plus client must be a good prospect for repayment.

Loss Mitigation Program
Forebearance Agreement/Repayment Plan
Allows additional time to repay past due payments.

Partial Claim
The loan must be at least 4 months but no more than 12 months deliquent. The loan may not be in foreclosure.

Loan Modification
Extends the term of your mortgage; may lower your interest rate or monthly payment.

Refinancing
Getting a new loan to extend the term of your mortgage or lower your interest rate.

Chapter 13 Bankruptcy
Allows you to repay past due payments through a 3 to 5 year plan. Your must resume making your regular mortgage payments and make a monthly payment to the court. There is a filing fee and a trustees fee.

Consider Selling Your Home
If you have equity in your property, selling your home prevents it from going to Sheriff Sale.