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FORECLOSURE / AVOIDING FORECLOSURE
Failure to pay your monthly mortgage payments can lead to foreclosure, but there may beways to avoid that outcome. The following is a list of things you can do if you can no longerafford your mortgage.
Analyze your financial situation and calculate how much of your mortgage you are ableto pay.
Contact a non-profit credit counseling agency for help with analyzing your financialsituation. In Connecticut, the non-profit credit counseling agency isConsumer CreditCounseling Service/Money Market International.
Contact your mortgage company as soon as you realize that you cannot make amortgage payment or soon after you have missed a payment – the sooner the better.
Stay in touch with your lender. Do not ignore the lender’s attempts to contact you.
Work with your lender to find a solution. Lenders are motivated to help you find a way toavoid foreclosure. They want to continue receiving your mortgage payments. They don’twant to own your house.
Seek help from aHUD approved housing counseling agencyand from any of theprograms listed below.
FORECLOSURE RECOVERY SCAMS:
Beware of anyone that tells you that you can stop foreclosure by signing a document thatappoints someone else to act on your behalf. You could be signing over the title to yourproperty without knowing it. Before signing any document that deals with your mortgage, getthe advice of an attorney, a HUD approved housing counselor, or a real estate professional thatyou know and trust. You can also call the Better Business Bureau or the State's Attorney to seeif the business is trustworthy.To read more about foreclosure scams, go to the Federal Trade Commission’s paper,Foreclosure Rescue Scams: Another Potential Stress for Homeowners in Distress.
PROGRAMS FOR CONNECTICUT RESIDENTS AT RISK OF FORECLOSURE:
HUD Approved Counseling Agencies
New programs through the 2009 American Recovery and Revitalization Act (ARRA)"MAKING HOME AFFORDABLE" program:This is a mortgage foreclosure program for people whose loans originated before January1, 2009. This program has two parts:a. REFINANCING: Many homeowners pay their mortgages on time but are not able torefinance to take advantage of today’s lower mortgage rates perhaps due to a decreasein the value of their home. A Home Affordable Refinance will help borrowers whose loansare held or secured by Fannie Mae or Freddie Mac refinance into a more affordablemortgage.b. LOAN MODIFICATION: Many homeowners are struggling to make their monthlymortgage payments either because their interest rate has increased or they have lessincome. A Home Affordable Modification will provide them with mortgage payments theycan afford. Mortgage lenders for the Modification Program are offered financial incentivesto participate, but participation is not required. It is on a voluntary basis and mortgagesare evaluated on a case-by-case basis.To check eligibility and for more information, go to:http://www.makinghomeaffordable.gov/
Connecticut Dept. of Banking's Mortgage Foreclosure Assistance Hotline gives referrals toHUD counseling agencies and other foreclosure assistance centers; also cases can begiven to Dept. of Banking examiners to research. (877)472-8313
Connecticut Housing Finance Authority (CHFA) manages several mortgage foreclosureassistance programs, including the (Connecticut Fair Alternative Mortgage LendingInitiative and Education Service (CT FAMLIES) program, theEmergency Mortgage
Assistance Program (EMAP)and the Homeowners Equity Recovery Opportunities program(HERO). Call CHFA at (877)571-2432.
Homeownership Preservation Foundation's HOPE Hotline/HOPE NOW provides freemortgage foreclosure counseling and referrals to in-state foreclosure counselingresources. Access to housing counseling is also available at the website. English andSpanish-speaking counselors are available at the HOPE Hotline 24 hours a day, 7 days aweek.
Statewide Legal Assistance's Pro Bono Foreclosure Attorney Panel assists income eligiblehomeowners facing foreclosure at no charge. Homeowners must have income at or below
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