Foreclosure Prevention

If you are having difficulty paying your mortgage contact NeighborWorks® New Horizons. NeighborWorks® New Horizons, a non-profit organization, is a HUD approved housing counseling agency. Its foreclosure prevention counseling program provides FREE counseling services to home owners who are in danger of losing their homes. Their objective is to assist homeowners avoid foreclosure, stay in their homes and remain part of their community. NeighborWorks® New Horizons will work with homeowners to assess their immediate needs and look at options to prevent foreclosure.

NeighborWorks New Horizons

Neighborworks has access to all of the programs listed below and many more. Contact Foreclosure Counselor Jose Santos by email at jsantos@nwnh.net or by phone at 800-270-7517 ext. 24 to set up a confidential interview to determine the foreclosure prevention program that’s best for you.

NeighborWorks New Horizons is located at 235 Grand Avenue, New Haven, CT 06513 and has a branch office on 239 Williams Street, Suite 2-2, in New London, CT 06320.


A. FEDERAL PROGRAMS

You can use the self-assessment tools provided to see if you are among the 7 to 9 million homeowners who may be able to benefit from Making Home Affordable at http://makinghomeaffordable.gov/

 Making Home Affordable

Making Home Affordable has two options:

  1. Determine your eligibility to refinance at https://www.makinghomeaffordable.gov/steps/Pages/step-2-refinance-programs.aspx
  2. Determine your eligibility for a loan modification at https://www.makinghomeaffordable.gov/steps/Pages/step-2-modification-programs.aspx

Obama Administration Announces Enhancements to HAMP, FHA Refinances

On March 25, 2010, the Obama Administration, including Federal Housing Administration (FHA) Commissioner David H. Stevens, announced changes to the Home Affordable Modification Program (HAMP) and enhancements to the FHA’s refinance program. The Federal cost of these changes will be funded through the $50 billion allocation for housing programs under the Troubled Asset Relief Program (TARP).

Under the HAMP enhancements, unemployed borrowers meeting eligibility criteria will have an opportunity to have their mortgage payments temporarily reduced to an affordable level for at least 3 months and up to six months for some borrowers while they look for a new job. Eligible homeowners under HAMP must live in an owner occupied principal residence, have a mortgage balance less than $729,750, owe monthly mortgage payments that are not affordable (greater than 31 percent of their income) and demonstrate a financial hardship. Servicers are required to consider an alternative modification approach that emphasizes principal relief.

The FHA refinance option provides more opportunities for lenders to restructure loans for some families who owe more than their home is worth. This is a voluntary program for lenders and homeowners and is primarily targeted to non-FHA borrowers refinancing into a FHA-insured mortgage. To be eligible for a FHA refinance homeowners must be current on their mortgage. This rewards responsible homeowners and creates stabilizing incentives in the housing market.

Total mortgage debt for the borrower after the FHA refinancing, including both first and any other mortgages, cannot be greater than 115 percent of the current value of the home. This will give homeowners a path to rebuild equity in their homes and an affordable monthly payment. Lenders must write down principal of the original first mortgage at least 10 percent to reduce the debt burden on borrowers and the loans may not exceed 97.75 percent of the value of the home. All mortgage debt including second liens must be written down to a maximum of 115 percent of the current value of the home.

NAR Resources


B. STATE PROGRAMS

1. THROUGH CONNECTICUT HOUSING FINANCE AUTHORITY

 CHFA

a. CT FAMILIESConnecticut Fair Alternative Mortgage Lending Initiative and Education Services Program
offers loans to Connecticut homeowners who are delinquent and who would benefit from refinancing their fixed-rate or adjustable-rate mortgages into more affordable 30-year fixed-rate mortgages. More here…

b. Emergency Mortgage Assistance Program
The Emergency Mortgage Assistance Program (EMAP) provides temporary monthly mortgage payment assistance for up to five years to eligible Connecticut homeowners who are facing foreclosure due to a financial hardship. More here…

c. Foreclosure Prevention Counseling
To support Connecticut homeowners who are struggling financially and at risk of foreclosure, HUD/CHFA-approved housing counseling agencies throughout the state offer a range of Foreclosure Prevention Counseling services free-of-charge to homeowners who are delinquent or in danger of becoming delinquent on their mortgages. More here…

2. For more information check out the State of Connecticut, Dept of Banking website to learn about avoiding foreclosure.


C. OTHER RESOURCES

CT Fair Housing Center

1. If you are unable to refinance or modify your loan, are facing foreclosure, and can’t afford an attorney, the Connecticut Fair Housing Center at http://www.ctfairhousing.org has a brochure, Representing Yourself in Foreclosure, A Guide for Connecticut Homeowners. Download the brochure in English. Download the brochure in Spanish.

2. Own It, Keep It!‘s goal is simple – to promote wise and responsible decisions regarding owning and keeping a home by offering information and resources to prospective home buyers and home owners alike.

Own It Keep It

3. KnowYourOptions.com

Fannie Mae has launched KnowYourOptions.comTM, a new consumer education Web site that outlines the choices available to homeowners who are struggling with their mortgage payments, and provides guidance on how they can contact and work with their mortgage company to find solutions.

The online resource, which offers reliable and easy-to-understand information in both English and Spanish, expands on Fannie Mae’s ongoing efforts to help struggling borrowers find alternatives to foreclosure.

Key features of KnowYourOptions.com include:

  • An interactive Options Finder to help homeowners identify options that might be right for their situation;
  • Calculators to help borrowers understand how many of the options work, including refinance, repayment, forbearance, and modification;
  • Videos featuring real homeowners discussing how they received help and housing counselors providing advice;
  • A virtual assistant to walk homeowners through key areas of the site; and
  • Next steps and helpful forms, including a financial checklist and contact log to help borrowers be prepared when contacting their mortgage company or housing counselor.

KnowYourOptions.com provides homeowners who are having trouble paying or recognize they can no longer afford their mortgages with detailed information on:

  • Refinancing
  • Repayment plans
  • Forbearance
  • Loan modifications
  • Deed-for-LeaseTM
  • Short sales
  • Deeds-in-lieu
  • And more

Check out KnowYourOptions.com today!