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Phone: 801-737-3800
Fax: 801-340-4155
Phone: 801-737-3800
Fax: 801-340-4155
Information about Homeowner Affordability and Stability Plan Complete details of President Obama's program will be announced on March 4th when the program begins. The Treasury Department has created a Web site for the program that provides all information related to the program as it becomes available. Please visit www.financialstability.gov to learn more.
The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA). Call 1 (800) 225-5342 for more information.
Toll free assistance for servicemen and women
Toll free: (800) CALL-FHA or (800) 225-5342
TDD: (877) TDD-2HUD (877) 833-2483).
Department of Housing and Urban Development (HUD)
Local Counseling Services
Agency Name: YOUR COMMUNITY CONNECTION Phone: 801-394-9456
Fax: 801-394-9457 Email: HCGCounselor@yccogden.org
Address: 2261 Adams Ave
Ogden, Utah 84401-1510 Counseling Services: - Home Equity Conversion Mortgage Counseling
Homeowner affordability and stability plan PDF
HUD How to avoid foreclosure PDF
Budget worksheet PDF
Typical information requested by lenders in a workout package include:
Through this website you have taken the first step toward educating yourself about available options. Determine if the layoffs will cause a financial hardship that will make it hard for your family to make your mortgage payments.
If so, consider other resources that you have available to pay your mortgage. Review your spending habits and see where you can reduce spending. If you have a lot of consumer debt, consider contacting a nonprofit, consumer credit counseling agency. Take advantage of any employer offered resources. If you still believe that you will have trouble making your mortgage payments, contact your lender right away.
Some workout options do include expenses that the borrower is expected to pay, for example, recording fees for a loan modification. Because, every situation is different you should contact your lender for more information. However, if a lender has no contact with a borrower and has to start foreclosure, the legal fees that the borrower will be expected to pay can be very expensive. To avoid unnecessary legal fees, call your lender as soon as you realize you are in trouble.
No, You do not have to stop making payments on your home in order for the bank to approve a short sale. What the bank needs to see is a solid reason why you are unable to continue making your monthly payments and/or must sell (loss of job, relocation, divorce, etc.). Due to the current market conditions the banks generally understand why the short payoff is being requested - whether you have missed payments or not.
A short sale is simply requesting the bank to accept a total payoff of your loan for an amount less than what you owe. You are only in foreclosure when you receive the foreclosure notice from the bank.
The majority of people we work with have both a 1st and 2nd or home equity line. In this situation the 1st mortgage generally approves an amount for the 2nd and we negotiate between the two. The 2nd Mortgage Company is accustomed to taking a much lower payoff.
When you sell your property as a short sale you are not entitled to receive money back at closing because there is no equity in your property. If you do have equity in your property you will receive that equity at closing just like any other seller, but it is vitally important that you contact us immediately to preserve as much of your equity as possible. I
A real estate agents commission is taken out of the bank proceeds at close of escrow. There should never be an out of pocket expense for a seller who lists their home as a short sale with a real estate agent.
Because it is generally far more expensive for the bank to foreclosure on your home than to work with us on a short sale we can postpone the sale on your home in most cases while we are marketing and/or negotiating your short sale.
Unexpected life changes are often a contributing factor to foreclosure - especially those that impact your finances, such as:
What makes it so difficult to think about foreclosure during times of crisis is that you are so focused on the problem at hand and not likely to have the time or energy to think about how it could impact other aspects of your life. That is why a plan that was developed before any problem starts is the best protection.
If you have a "Plan B" in place, you won't have to organize your finances while you are stressed about finding a job or dealing with a major illness. The plan will already be done - you will need to just follow it.
There may not be a major life change to signal potential trouble - you simply may be having a difficult time properly managing your finances. Don't be fooled into thinking your credit card problems won't affect your mortgage. It is important to realize that financial difficulties in one area can, and often do, spill over to other areas. These difficulties are all warning signs of financial problems that can lead to foreclosure on your home if you do not act quickly. They include:
Talk to a housing counselor immediately if you see these signs You may be able to get your finances back on track before foreclosure becomes a reality.
If you are facing foreclosure you may be tempted to give up and walk away from your home. Don't give up! You must act now. Foreclosure is a harsh legal process that often moves quickly!
Regardless of what anyone may tell you, both a foreclosure and short sale will have a negative impact on your credit, however, there is a difference in the severity of the damage between a foreclosure and a short sale. A foreclosure will show on your credit as a foreclosure/repossession whereas a short sale will show as pre-foreclosure in redemption status or settled. A foreclosure can prevent you from purchasing a home for 5-7 years whereas new Fannie Mae and Freddie Mac guidelines have changed the seasoning of a short sale to 2 years - which means you can purchase a home much sooner.
Foreclosures also generally have a more severe impact on your credit score. Due to the high number of missed payments many people accrue over the course of their foreclosure most people report a drop of 200-300 points in their score. If you are proactive about short selling your home you can reduce this number by acting quickly to get your home on the market and sold. Most people who complete a short sale report a drop of 80-120 points in their credit score.
Do not underestimate the importance of preserving your good credit. Your future ability to purchase certain items, rent or buy a home, and complete other transactions often requires a credit check. Consumer credit agencies and your lender can help you explore solutions to keep your credit from getting blemished.
Maintaining good credit is even important for job hunters. When you apply for a job, the employer probably will check your credit report.
The short sale process is also far more discrete than a foreclosure. Your friends, family and neighbors do not need to know you are doing a short sale on your property and your property will be marketed like any other home for sale. When the property closes escrow you will move out and move on with your life. When your home is facing foreclosure the bank generally posts a notice of trustee sale on your property. If the property does go to foreclosure and you or a tenant is living in the home there will be an eviction process followed by a listing - where it is generally marketed as a bank owned or foreclosure property.
A short sale allows you to get out of a home that is causing you a financial hardship without having to face foreclosure. We highly recommend that if you are considering a short sale you meet with a Real Estate Professional as soon as possible to reduce the impact on your credit and begin the negotiations with your lender.
Please beware of these foreclosure scams when seeking assistance with your situation!
Caution: Do not fall prey to predatory practices! If it sounds to good to be true it probably is. A legitimate service provider will not pressure you into making immediate decisions. High-pressure tactics are the first sign that you may be the victim of predatory practices.
We never charge an up front fee and your home remains in your possession until it sells. Please read more and be on the lookout for foreclosure scams. If you feel you have been the victim of a foreclosure scam call the mortgage Fraud Hotline at 1-800-4FRAUD8
Mortgage fraud is becoming more common. To protect your home and your home equity it is important to understand and recognize the signs of mortgage fraud. It's also important to know how to report fraud to state and federal authorities so they can stop scam artists from preying on innocent borrowers. Scam artists will often target homeowners already struggling to meet their mortgage commitments or anxious to sell their homes. There is help available when facing financial problems or foreclosure, but make sure you are dealing with a reputable organization before getting involved. Fraud schemes may sound good, but ultimately the goal is to take your home - not help you keep it.
If you have fallen behind on your mortgage payments, this may seem like an attractive solution - but beware. A foreclosure rescue scheme often begins with a scam artist offering a promise to pay off your delinquent mortgage, allowing you to stay in the home as a renter with the option to purchase the home back when your financial situation improves.
But what really happens is a series of steps designed to cash out the equity in the home and disappear:
Scam artists are very crafty and will often vary the scheme depending on the homeowner they are talking to, so be cautious. Some warning signs that a scam artist may be trying to set you up as a victim of a foreclosure rescue scheme include:
The best solution when you face financial difficulties that may endanger your home is always to talk to your lender or a counseling service.
Flipping is a legitimate practice where an investor purchases a property in need of repairs or upgrades, makes the necessary changes to the property in a very short amount of time and sells the home for a profit.
We've all seen the TV shows about flipping and they're fun to watch. But there are scam artists who use flipping to make money illegally. Often times, the scam artist will offer much more than the asking price of a home with a stipulation that the "surplus" amount over the asking price is given back to the borrower at closing.
At closing, the inflated value of the home will be attributed to home improvements that were never made. The scam artist will pocket that surplus money and default on the loan.
As a homeowner, especially one whose house has been on the market a long time, this may seem like an attractive deal but remember - falsifying documents is fraud.
These are people who offer to find a buyer in return for part of your equity. Hire a Realtor who will answer your questions and who makes you feel comfortable. A Realtor is much less expensive and Realtors get results. Use caution, some Realtors are actually acting as middlemen and are trying to take advantage of your current misfortune. These "middlemen" often have "investors" who will buy your home, leaving you without any of your equity. Another scam is using your home as "bait" for buyers with no intention of actually selling your home.
You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a Counseling agency will provide free if you contact them.
The information below was provided by IRS.gov regarding the Mortgage Debt Relief Act of 2007. As always, please consult your tax preparer or accountant regarding the Mortgage Debt Relief Act and how it may apply to you and your financial situation. If you have specific questions regarding the information below you can contact the IRS at 1-800-829-1040.
The Mortgage Forgiveness Debt Relief Act of 2007 was enacted on December 20, 2007. Generally, the Act allows exclusion of income realized as a result of modification of the terms of the mortgage, or foreclosure on your principal residence. Usually, debt that is forgiven or cancelled by a lender must be included as income on your tax return and is taxable. The Mortgage Forgiveness Debt Relief Act of 2007 allows you to exclude certain cancelled debt on your principal residence from income. This Act applies to debt forgiven in 2007, 2008 or 2009.
This Act applies only to forgiven or cancelled debt used to buy, build or substantially improve your principal residence, or to refinance debt incurred for those purposes. Debt used to refinance your home qualifies for this exclusion, but only up to the extent that the principal balance of the old mortgage, immediately before the refinancing, would have qualified. Debt forgiven on second homes, credit cards, car loans, etc does not qualify for this exclusion.
The amount of debt forgiven must be reported on Form 982 and the Form 982 must be attached to your tax return. Form 982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Adjustment), is used for other purposes in addition to reporting the exclusion of forgiveness of qualified principal residence indebtedness. If you are using the form only to report the exclusion of forgiveness of qualified principal residence indebtedness as the result of foreclosure on your principal residence, you only need to complete lines 1e and 2. If you kept ownership of your home and modification of the terms of your mortgage resulted in the forgiveness of qualified principal residence indebtedness, complete lines 1e, 2, and 10b. Attach the Form 982 to your tax return.
Your lender should send a Form 1099-C, Cancellation of Debt, by January 31, 2008. The amount of debt forgiven or cancelled will be shown in box 2. If this debt is all qualified principal residence indebtedness, the amount shown in box 2 will generally be the amount that you enter on lines 2 and 10b, if applicable, on Form 982.
Forgiven debt may qualify under the "insolvency" exclusion if it does not qualify for exclusion from income under this provision. Normally, a taxpayer is not required to include forgiven debts in income to the extent that the taxpayer is insolvent. A taxpayer is insolvent when his or her total liabilities exceed his or her total assets. The forgiven debt may also qualify for exclusion if the debt was discharged in a Title 11 bankruptcy proceeding or if the debt is qualified farm indebtedness or qualified real property business indebtedness. If you believe you qualify for any of these exceptions, see the instructions for Form 982.
There is no dollar limit if the principal balance of the loan was less than $2 million ($1 million if married filing separately for the tax year) at the time the loan was forgiven. If the balance was greater, see the instructions to Form 982, page 4.
In Utah, lenders may foreclose on a mortgage in default by using the judicial foreclosure process.
The judicial foreclosure process is one in which the lender must file a complaint against the borrower and obtain a decree of sale from a court having jurisdiction in the county where the property is located before foreclosure proceedings can begin. Generally, if the court finds the borrower in default, they will give them a set period of time to pay the delinquent amount, plus costs. If the borrower does not pay within the set period of time, the court will then order the property to be sold in the manner of normal execution sales.
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines". This type of sale can happen very quickly.
If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
Few people think they will lose their home, they think they have more time. Here's how it happens. Note: Timeline varies by lender.
Important: Stay in contact with your lender and get assistance as early as possible. All dates are estimated, and vary according to your mortgage company.
Send us your information and a licensed realtor will contact you with professional advice. There is no obligation or fee for this service. You can also contact us by phone at 801-737-3800
