Decoding the Mortgage Maze

Though it may not be happening to you, it is probably happening to a neighbor, a friend, maybe even a family member.

Sara Parker with Utah Central Credit Union shares 6 tips on what to do if you are facing a home foreclosure.

1. Tip number one is: Face the issue. Don’t hide. Talk with your lender. Most people just worry and hope the bank won’t do anything but they are bound by laws and regulations. The trigger point is when a homeowner misses three mortgage payments in a row. That’s the danger zone. You want to avoid that because if you don’t the bank or credit union will issue you a Notice of Default.

2. Ask for Mortgage Relief or Forbearance. Banks and credit unions may be willing to offer you mortgage relief by extending the time they would normally foreclosure on the home. Or, if you have a hardship case, they may be willing to let you miss the payments for a short time through forbearance -but require you to pay the interest.

3. Ask for a loan modification. If you have a good credit score and strong income -but are 30-120 days behind in payments, you may be able to lower the amount of your monthly mortgage, give you a lower interest rate or extend your payment period through a loan modification.

4. Ask for a repayment plan. If you’re behind on payments, and your payment is say, $1,200 a month, the lender might let you add $100 a month to each payment for a year until you are caught up. This is called a repayment plan.

5. Ask for a refinance. If you have sufficient equity and meet the lender’s lending guidelines, the lender might increase your loan balance to include the back payments and re-amortize the loan. This is called a refinance.

6. Use short sale as a last resort. You may be in a situation where you owe more on your house then it’s worth. Rather than the bank spending all the money to foreclose on you, they allow you to sell the house for the less money than what you owe them. You are “short” the money that you owe them. That’s why it’s called a short sale. And therefore they will just simply take the amount of money that you sell the house for and cancel the rest of the money that you owe them. You will still owe taxes on the difference.

Agency Name: COMMUNITY DEVELOPMENT CORPORATION OF UTAH

Phone: 801-994-7222

Toll Free: 866-994-7222

Fax: 801-994-7220

Email: stephanie@cdcutah.org

Address: 501 East 1700 South

Salt Lake City, Utah 84105

Counseling Services:

– Homebuyer Education Programs

– Marketing and Outreach Initiatives

– Mortgage Delinquency and Default Resolution Counseling

– Postpurchase Counseling

– Prepurchase Counseling

Languages:
– English

– Spanish

Affiliation: HOUSING PARTNERSHIP NETWORK

Website: www.cdcutah.org

Agency Name: HOUSING AND OPPORTUNITY THROUGH POSITIVE EMPOWERMENT (HOPE)
Phone: 800-757-0406
Toll Free: 800-757-0406
Fax: 801-208-9863
Email: HousingandOpportunity@gmail.com
Address: 230 West 200 South #3104
Salt Lake City, Utah 84101
Counseling Services: – Homebuyer Education Programs
– Marketing and Outreach Initiatives
– Mortgage Delinquency and Default Resolution Counseling
– Postpurchase Counseling
– Prepurchase Counseling
– Renters Assistance
Languages: – English Only
Affiliation: HOMEFREE – U S A
Website: http://www.HousingandOpportunity.org

Agency Name: NEIGHBORWORKS SALT LAKE
Phone: 801-539-1590
Toll Free:
Fax: 801-539-1593
Email: info@nwsaltlake.org
Address: 622 W 500 North
Salt Lake City, Utah 84116
Counseling Services: – Fair Housing Assistance
– Home Improvement and Rehabilitation Counseling
– Homebuyer Education Programs
– Loss Mitigation
– Marketing and Outreach Initiatives
– Money Debt Management
– Mortgage Delinquency and Default Resolution Counseling
– Postpurchase Counseling
– Predatory Lending
– Prepurchase Counseling
Languages: – Spanish
Affiliation: NEIGHBORHOOD REINVESTMENT CORPORATION
Website: http://www.nwsaltlake.org

Agency Name: SALT LAKE COMMUNITY ACTION PROGRAM
Phone: 801-359-2444
Toll Free:
Fax: 801-355-1798
Email: sabegglen@slcap.org
Address: 764 S 200 W
Salt Lake City, Utah 84101-2710
Counseling Services: – Home Equity Conversion Mortgage Counseling
– Homebuyer Education Programs
– Loss Mitigation
– Money Debt Management
– Mortgage Delinquency and Default Resolution Counseling
– Postpurchase Counseling
– Prepurchase Counseling
– Renters Assistance
Languages: – English Only
Affiliation: HOMEFREE – U S A
Website: n/a