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We are very excited about our new blog experience and look forward to sharing current happenings and everything that is going on at NHS OC. We urge you to sign up for our RSS Feed and receive notice of all the new posts. We also will be posting to Facebook so don’t miss out on all of the fun!! LOAN MODIFICATION SCAM ALERT Elsa Monte, Community Reinvestment Officer at Sunwest Bank has re-joined the NHS OC Board of Directors. Monte has a long history of volunteer service to NHS OC including serving on the Executive Committee and chairing the Asset Management Committee. NeighborWorks Press Release (04/16/10) Washington, D.C. – Today NeighborWorks America announced that $59.5 million has been awarded to 35 state housing finance agencies (HFAs), 15 HUD-approved housing counseling intermediaries, and 81 community-based NeighborWorks organizations to provide counseling to families and individuals facing the threat of foreclosure. Just four months after the fourth round of National Foreclosure Mitigation Counseling (NFMC) Program funds were appropriated, communities across our country will be able to put the funds to immediate use. At a time when foreclosures continue to rise and near-record unemployment rates hold steady, the need for the NFMC funding is critical. Demand for these funds far exceeded the amount of funding available; eligible applicants requested over $195,000,000 in NFMC grant funds. In total, more than 1,300 nonprofit counseling agencies and local NeighborWorks organizations across the country are expected to be engaged in the NFMC Program as a result of these awards. These organizations provide invaluable, free assistance to families at risk of losing their homes, determine client eligibility for the Making Home Affordable programs, help clients understand the complex foreclosure process, and identify possible courses of action so their clients can make informed decisions and take action. To date, more than 937,500 families in all 50 states, Puerto Rico and Guam have received foreclosure counseling through the NFMC Program. It is estimated that more than 155,000 families facing the threat of foreclosure will be directly assisted with this fourth round of funding. Many more will be helped by the training of foreclosure counselors, provided through the NFMC Program; NeighborWorks expects to train more than 2,000 counselors with the fourth round of NFMC funding. A pdf version of the list of NFMC Round Four awardees by state is available here: http://www.nw.org/network/nfmcp/documents/A.granteesbystate.pdf http://www.nw.org/network/nfmcp/documents/NFMCRound4PressReleaseFINAL.pdf This is a Federal Funding Notification to inform you that Neighborhood Housing Services of Orange County, Inc., a member of the national NeighborWorks® network, is being awarded $301,500 in flexible first round grant funds from NeighborWorks® America. This FY 2010 funding will support their efforts to revitalize and sustain their community and promote and preserve affordable housing for the residents of their service area in California. During the course of FY 2010, NeighborWorks® America (also known as the Neighborhood Reinvestment Corporation) plans to provide more than $119 million in grants to its national network of more than 235 community-based nonprofit organizations to stem the tide of foreclosures that threaten neighborhoods and local economies; create homeownership opportunities for families, produce and manage affordable, high-quality rental properties, and revitalize and strengthen communities. Additionally, through a Congressional appropriation of funds in support of the National Foreclosure Mitigation Counseling Program, NeighborWorks America has already awarded more than $356 million in grants to HUD-approved housing counseling intermediaries, state housing finance agencies and NeighborWorks® organizations to provide foreclosure counseling to families facing the threat of foreclosure – and plans to award an additional $60 million by April 2010. As of February 1, 2010, more than 1 million home owners facing foreclosure around the country had been counseled by the 1,700 grantees and sub-grantees foreclosure counseling agencies receiving funds from the National Foreclosure Mitigation Counseling Program. “Just one indicator of the value NeighborWorks® America generates is reflected in the fact that in recent years, the corporation has leveraged its federal appropriation by a factor of approximately $35 to $1 (the amount of investment generated in communities, generated per dollar of federally appropriated funds) — resulting in a direct investment of nearly $4 billion in distressed communities in fiscal year 2009, primarily from the private sector. As stewards of taxpayer dollars, NeighborWorks® ensures our investments are working in ways that truly make a difference,” said NeighborWorks® America CEO Ken Wade. “We thank Congress and our other private, philanthropic and public funders who make our work to expand affordable housing opportunities, strengthen communities and stem foreclosures possible. Although no one organization or sector can resolve the foreclosure problem alone, NeighborWorks® America is making a significant contribution to this effort.” Established by Congress in 1978 as the Neighborhood Reinvestment Corporation (Public Law 95-557), NeighborWorks® America is the original community/public/private partnership model, with locally-driven, efficient community development and leverage of the public investment as its hallmarks. Over the past 30+ years, NeighborWorks® America and its affiliated local community-based NeighborWorks® organizations have consistently replicated this successful model in over 4,500 communities in all 50 states, the District of Columbia and Puerto Rico; in America’s urban, suburban and rural communities. NeighborWorks® organizations receive grants and programmatic support from NeighborWorks® America, as well as training scholarships to the NeighborWorks® Training Institute. Over the past five years the NeighborWorks® network has been able to: • Invest nearly $20 billion in America’s urban, rural, and suburban communities; • Provide homeownership counseling to 500,000 families; • Assist more than 80,000 American families of modest means achieve their dream of home ownership; • Develop, own and manage over 73,000 units of affordable, high quality multifamily housing; • Rehabilitate more than 85,000 homes, using state-of-the-art methods, including green and healthy building techniques; • Create the nation’s largest force of certified homeownership education and foreclosure intervention counselors; • Invest in rebuilding efforts in hurricane-affected communities across the Gulf Coast; and • Mobilize hundreds of thousands of volunteers to revitalize communities. For questions about NeighborWorks® America or these grants awards, or if you would like to schedule a briefing regarding NeighborWorks, please reply to this e-mail or call NeighborWorks America’s Office of Public Policy and Legislative Affairs at: (202) 220-2443. www.nw.org PWR & The Orange County Housing Trust Present a Special Congressional Update with the Honorable Ed Royce and Prof. Kerry Vandell P.H.D. from The Center for Real Estate! They will present an overview of the housing markets and real estate financing going forward-taking into account the actions of Congress’ Financial Services Committee as well as the future of the secondary markets. Wednesday, March 31, 2010 U.S. Representative Ed Royce (R) is serving his ninth term in Congress representing Southern California’s 40th District, based in Orange County. Congressman Royce’s priorities in Congress are protecting our homeland, supporting our troops and veterans, providing meaningful tax relief for workers, protecting the budget and cutting excessive government spending, fighting crime and supporting victims of crime, strengthening education for all students, and preserving Social Security and Medicare. For the 111th Congress, Congressman Royce serves as a senior member of two important Committees in the House: Foreign Affairs and Financial Services. As a member of the Foreign Affairs Committee, Congressman Royce has been named Ranking Member of the Subcommittee on Terrorism, Nonproliferation and Trade; member of the Subcommittee on Asia, the Pacific, and the Global Environment and the Subcommittee on the Middle East and South Asia. As Ranking Member of the Subcommittee on Terrorism, Nonproliferation and Trade, Congressman Royce is at the forefront of some of the most important issues facing our country. The Subcommittee explores issues including the threat posed by Islamist terrorism, especially the al-Qaeda network; terrorist financing; terrorist sanctuaries and failed states; and capacity building of foreign forces to fight terrorism. The Subcommittee’s jurisdiction over nonproliferation issues is crucial given the severity of the threat of weapons of mass destruction falling into terrorist hands. Within the Financial Services Committee, Congressman Royce sits on three Subcommittees: Capital Markets, Insurance and Government Sponsored Enterprises; Financial Institutions and Consumer Credit; and Oversight and Investigations.
Prof. Kerry Vandell joined the Paul Merage School faculty in July 2006 as the founding head of its new academic focus in real estate and Director of its new Center for Real Estate. He comes from the University of Wisconsin-Madison, where he held the Tiefenthaler Distinguished Chair in Real Estate and Urban Land Economics, and was former Director of the Center for Urban Land Economics Research and Chair of the Department of Real Estate and Urban Land Economics. He taught previously at Harvard University, the University of California, Berkeley, and Southern Methodist University. Professor Vandell has researched and consulted widely and has written or co-authored more than 80 papers which have appeared in such publications as the Journal of Finance, the Quarterly Journal of Economics, Real Estate Economics, the Journal of Real Estate Finance and Economics, and the Wharton Real Estate Review. He has presented at conferences and meetings in Asia, Europe and throughout the United States and currently is serving as a board member of the Asian Real Estate Society. He is currently a member of the Counselors of Real Estate and the Urban Land Institute and is a past president of the American Real Estate and Urban Economics Association (AREUEA). He is on the editorial boards of Real Estate Economics (former co-editor), Land Economics, the Journal of Real Estate Finance and Economics, the Journal of Real Estate Research, Housing Policy Debate, and the International Real Estate Review. Prior to earning his PhD from MIT at the MIT-Harvard Joint Center for Urban Studies, Professor Vandell received his bachelor’s and master’s degrees in engineering at Rice University, and a master’s in city and regional planning at Harvard University. HUD NEWS U.S. Department of Housing and Urban Development – Shaun Donovan, Secretary Office of Public Affairs, Washington, DC 20410 HUDPH-113 FOR RELEASE Larry Bush Thursday (415) 489-6414 January 14, 2010 http://www.hud.gov/news/index.cfm HUD SECRETARY DONOVAN ANNOUNCES $318,046,837 IN RECOVERY ACT GRANTS TO STABLIZE NEIGHBORHOODS, REBUILD ECONOMIES IN CALIFORNIA Neighborhood stabilization grants to 12 California communities hard hit by the foreclosure crisis WASHINGTON – U.S. Housing and Urban Development Secretary Shaun Donovan today announced that HUD is awarding $318,046,837 in Recovery Act funding to Alameda County, Indio, Long Beach, Los Angeles, Los Angeles Neighborhood Housing Services, Modesto, Orange County, City of Santa Ana, Santa Clara Housing Trust, and targeted California communities through the Center for Community Self-Help, Chicanos Por La Causa, and Habitat for Humanity, under HUD’s Neighborhood Stabilization Program (NSP). The NSP grants announced today are part of $2 billion awarded nationwide to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes while creating jobs. Funded through the American Recovery and Reinvestment Act of 2009, this round of NSP grants is being awarded competitively to applicants who developed the most innovative ideas to address the impact the foreclosure crisis has had on local communities, while demonstrating that they have the capacity to be responsible stewards of taxpayer dollars. “Vacant homes have a debilitating effect on neighborhoods and often lead to reduced property values, blight, and neighborhood decay,” said Donovan. “This additional $2 billion in Recovery Act funding will help stabilize hard hit communities by turning vacant homes from eyesores into community assets.The Neighborhood Stabilization program is a key part of the Obama Administration’s comprehensive approach to address the national housing and economic crisis.” Full descriptions of each community’s program, including funding and specific goals, are attached at the end of this release. The Neighborhood Stabilization Program was created to address the foreclosure crisis, create jobs, and grow local economies by providing communities with the resources to purchase and rehabilitate foreclosed homes and convert them to affordable housing. Last year, HUD awarded nearly $4 billion in NSP formula funds to over 300 grantees nationwide to help state and local governments respond to rising foreclosures and falling home values. In addition, on August 26, 2009, HUD awarded $50 million in technical assistance grants to help grantees more effectively manage the inventory of foreclosed homes they purchase under the Neighborhood Stabilization Program. HUD’s NSP technical assistance grants are helping NSP recipients to implement sound underwriting, management, and fiscal controls; measure outcomes created by public funds; build the capacity of public-private partnerships; develop strategies to serve low-income households; incorporate energy efficiency into NSP programs; provide support, and training on the operation of ‘land banks’; and train NSP recipients on HUD program rules and financial management requirements. The additional $2 billion in NSP grants being awarded today will build on the work being done now to help state and local governments and non-profit developers collaborate to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to middle-income homebuyers. Grantees can also create “land banks” to assemble, temporarily manage, and dispose of foreclosed homes. The Neighborhood Stabilization Program will also help to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance funds through NSP. In addition, it will protect homebuyers by requiring grantees to ensure that new homebuyers under this program obtain a mortgage from a lender who agrees to comply with sound lending practices. CALIFORNIA AWARDS: City of Indio- The City of Indio, California in a consortium agreement with the Rancho Housing Alliance and the Indio Redevelopment Agency has been awarded $8,130,000 in NSP2 funds. The city will use these funds in targeted areas across 3 census tracts that have experienced serious housing market decline due to foreclosed and abandoned properties. This 3 member consortium will acquire, rehabilitate, and resell 100 abandoned or foreclosed homes, demolish 5 vacant homes and redevelop these 5 sites, and provide financing in the form of down payment assistance to ensure affordability of these 105 homes. Additionally, 100 homebuyers will receive counseling and 100 homes will receive lead based paint and termite inspections. This NSP2 program focuses on stabilizing neighborhoods with the highest combined foreclosure/vacancy rates, older neighborhoods needing greater assistance to thwart decline, and creating higher levels of homeownership for households at or below 80percent of area median income, with 25percent of funds benefiting households whose income does not exceed 50percent of area median income. The long term goal of this stabilization program is to increase sales of residential properties and increase median market values in targeted neighborhoods. City of Los Angeles- The City of Los Angeles has been awarded $100,000,000 in NSP2 funds to use in targeted areas in the city across 164 census tracts. These areas are marked by a high concentration of foreclosures resulting in declining home values and increasing poverty and unemployment rates. The City will use NSP2 funds to further support and enhance NSP1 projects already underway. NSP2 funds will be used to acquire, rehabilitate and resell foreclosed and abandoned homes in the form of 265 single family homes and 947 units of multifamily rental properties. The City will also provide financing for mortgage assistance and rehabilitation loans for the purchase and rehabilitation of foreclosed homes in the target areas. All activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds benefiting households whose income does not exceed 50precent area median income. The City’s goal is to reduce the number of vacant and abandoned properties, reduce the absorption period for sales of foreclosed properties, and stabilize home values. City of Santa Ana- The City of Santa Ana, California has been awarded $10,000,000 in NSP2 funds. These funds will be used across targeted areas in 18 census tracts with high rates of abandonment and foreclosure that if left unaltered, will have a debilitating impact on real estate values, crime rates, and neighborhood stability. The housing market in these areas is marked by overvaluation, subprime and adjustable loans, and high unemployment. The City will use these funds to provide down payment assistance for 10 units and to acquire and rehabilitate foreclosed properties in the form of 60 units of single family homes and 30 units of rental housing. These rehabilitated homes will be made available to households whose income is at or below 120percent of the area median income, with 25percent of the funds going to households at or below 50percent median income. Through these activities, the City will be able to stabilize the targeted areas by eliminating the rehabilitating impacts of foreclosure and abandonments. City of Modesto- The City of Modesto, California has been awarded $25,000,000 in NSP2 funds. These funds will be used in targeted areas across 36 census tracts where over-valuation and over-building have caused high numbers of residential foreclosures and abandonment. The City will use the awarded funds to acquire and rehabilitate 175 foreclosed or vacant properties. Forty (40) of these homes will be specifically allocated to provide housing for special needs households who are in need of permanent housing. All activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent area median income. Overall, the program will serve and estimated 200 families and individuals over 3 years while stabilizing the targeted areas to arrest further decline throughout the community. Center for Community Self-Help- The Center for Community Self-Help has been awarded $11,763,553 in NSP2 funds. These funds will be used in targeted areas across 778 census tracts in the Central Valley and Bay Area of California, Chicago, Los Angeles, New Haven, and Atlanta. The Center for Community Self-Help is taking a unique approach for its use of NSP2 grant to fund loan loss reserves, a financing mechanism, which will provide additional security for repaying various types of financing, which include lease-purchase mortgages, direct home mortgages, developer credit lines, and mortgages for investor-owned properties for a proposed 560 foreclosed residential properties. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. Providing these permanent financing options in the targeted areas is essential to the continued success of NSP activities already underway to help revitalize the housing market and ensure neighborhood stabilization in these metropolitan areas. Housing Trust of Santa Clara County, Inc.- The Housing Trust of Santa Clara County, Inc. in a consortium agreement with the City of San Jose and Neighborhood Housing Services Silicon Valley has been awarded $25,000,000 in NSP2 funds. These funds will be used in targeted areas across 35 census tracts that have been the hardest hit by foreclosures within the City of San Jose. The consortium will use the funds to provide financing mechanisms, in the form of down-payment assistance and closing cost assistance, for the individual purchase and redevelopment of 100 foreclosed homes and will acquire and rehabilitate 105 foreclosed or abandoned properties. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. These funds, and the leveraging of $2,250,000 in additional funds, will reduce the number of foreclosed or abandoned homes and residential properties in the targeted areas and lead to stabilization of the housing market. City of Long Beach, California- The City of Long Beach, California in a consortium agreement with Habitat for Humanity Greater Los Angeles has been awarded $22,249,980 in NSP2 funds. These funds will be used in targeted areas across 44 census tracts affected by high foreclosure rates and subprime mortgages. The consortium will establish financing mechanisms, in the form soft second loans, loan loss reserves, and shared-equity loans, for 86 individuals to purchase and redevelop foreclosed upon homes and the consortium will purchase and rehabilitate 25 homes that have been abandoned or foreclosed upon in order to sell, rent, or redevelop these properties. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. These funds, and the leveraging of $1,725,000 in other funds, will help stabilize high foreclosure areas, arrest declining housing values, and reconnect targeted neighborhoods with the economy, housing market, and social networks of the community and metropolitan area as a whole. Los Angeles Neighborhood Housing Services, Inc.- Los Angeles Neighborhood Housing Services in a consortium agreement with Asian American Drug Abuse Program, ANR Industries, Budget Finance Company, City of Carson, City of Compton, City of Inglewood, GRID Alternatives, Major Properties, Vermont Village Community Development Corporation, Search to Involve Pilipino Americans, Vermont Slauson Economic Development Corporation, and Watts Century Latino Organization has been awarded $60,000,000 in NSP2 funds. These funds will be used in targeted areas across 37 census tracts that have been most severely impacted by foreclosures. The consortium will provide financing assistance in the form of down payment assistance for at least 400 homes, most of which are foreclosed properties, and will provide up to 700 units of affordable housing through the acquisition and rehabilitation of foreclosed or vacant properties. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. These funds, and the leveraging of $2,600,000 in other funds, will allow the Consortium to expand on existing local efforts and make a significant contribution to neighborhood stabilization within the targeted areas. Alameda County- Alameda County in a consortium agreement with City of Dublin, City of Emeryville, City of Hayward, City of Fremont, City of Livermore, City of Pleasanton, City of Newark, City of San Leandro, and City of Union has been awarded $11,000,000 in NSP2 funds. These funds will be used in targeted areas across 45 census tracts to reverse the effects of foreclosures and declining property values. The consortium will purchase and rehabilitate 28 foreclosed homes to become low income rental housing and will acquire and redevelop 72 demolished or vacant properties. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. These funds, and the leveraging of $10,000,000 in other funds, will help restore the housing market and lead to neighborhood stabilization in the targeted areas. Neighborhood Housing Services of Orange County- Neighborhood Housing Services of Orange County in a consortium agreement with Orange County Community Housing Corporation, Mary Ericson Community Housing, Habitat for Humanity of Orange County, Affordable Housing Clearinghouse, Irvine Community Land Trust, and Community Housing Resources has been awarded $7,500,000 in NSP2 funds. These funds will be used in targeted areas across 129 census tracts affected by high foreclosure and vacancy risk scores. The consortium will acquire and rehabilitate 68 foreclosed or abandoned properties for resale and rental and provide financing mechanisms, in the form of homebuyer assistance, for 45 households to purchase and rehabilitate foreclosed homes. These activities will benefit households whose income is at or below 120percent of area median income, with 25percent of the funds for households at or below 50percent of area median income. These funds, and the leveraging of $2,500,000 in other funds, will rapidly arrest the decline of the housing market and provide continued affordability in the targeted geography.
HUD is the nation’s housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation’s fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.
Homeowners Who Receive Foreclosure Counseling Are Sixty Percent More Likely to Avoid Foreclosure than Homeowners Who Don’t Seek Counseling NFMC Program Counselors Help Homeowners Reduce Their Mortgage Payments an Average of More Than $5,000 per Year Today Neighborhood Housing Services of Orange County (NHS OC) announced that homeowners who receive foreclosure counseling are 60 percent more likely to avoid losing their homes to foreclosure than homeowners who do not receive foreclosure counseling, according to findings in a recent report of the National Foreclosure Mitigation Counseling (NFMC) Program. NHS OC is a grantee of the NFMC program, and an affiliate of NeighborWorks America, which was selected by Congress to administer a homeowner counseling program to address the national foreclosure crisis. As a result of NFMC Program funding, Orange County families along with families across the nation who sought and received foreclosure counseling were provided much needed information, assistance and guidance to address their risk of foreclosure, which helped them find a solution to foreclosure. The report, which analyzed NFMC Program activity during the first year of the program (January 1-December 31, 2008) also found that NFMC Program clients were more likely to receive a loan modification than homeowners who did not receive counseling, and NFMC Program clients who received loan modifications lowered their mortgage payments significantly more than homeowners who received loan modifications without NFMC Program counseling. NFMC Program clients, with the help of their counselors, secured loan modifications that lowered their monthly mortgage payments $454 more than the clients who received modifications without foreclosure counseling, which results in an average annual savings of $5,448. “The results of this study only verify what we at NHS OC already knew from experience and that is that homeowners that receive education and counseling fare much better than those that don’t,” said Glenn Hayes, Executive Director, NHS OC. “Thanks to the hard work and expertise of our Home Preservation Counseling staff, Orange County families are less likely to lose their homes to foreclosure and receive substantially better mortgage modifications, significantly reducing the likelihood of falling behind again on their mortgage.” While the report analyzes the program data through December 31, 2008, to date more than 750,000 families have received foreclosure counseling as a result of NFMC Program funding. Because of funding from the NFMC program, NHS OC is positively affecting the lives of real people in Orange County, like Ms. Simons. “I turned to a friend to help me purchase a home thinking that she had a legal obligation to help me get an affordable loan. I found out that I was wrong,” said Ms. Simons. “I was scared when I turned to NHS OC for help. Handing over “my whole life” on paper was unnerving but Ana, (Gonzalez, Home Preservation Counselor) handled my case with so much expertise I felt confident that a solution would be found.” “It took a lot of work and a long time but Ana was able to secure a loan modification. I am so grateful to Ana and to NHS OC for the help that they gave me and my family,” said Ms. Simons, “now I can make my payments, maintain my budget and keep my home.” “I am happy I was able to assist Ms. Simons overcome her hardship. Although the lender was reluctant to provide the assistance she needed; it was Ms. Simons determination and faith in my stick-to-itiveness, that we were able to reach such a goal. Ms. Simons is a proud and determined mom, one that I have much respect, it was truly an honor to meet and assist such a strong and loving person,” said Ana Gonzalez, Home Preservation Counselor, NHS OC. The NFMC Program was created by Congress to address the nationwide foreclosure crisis by dramatically increasing the availability of housing counseling for families at risk of foreclosure. The $180 million program was authorized through the FY 2008 Consolidated Appropriations Bill, which named NeighborWorks as its administrator. An additional $180 million was appropriated to this effort on July 30, 2008 through the Housing and Economic Recovery Act of 2008, and the Omnibus Appropriations Act of 2009 appropriated another $50 million to the program on March 11, 2009. For more information about the National Foreclosure Mitigation Counseling Program, visit www.nw.org/nfmc. Homeowners in the Orange County area who would like to receive foreclosure counseling at NHS OC can contact Roberto Gonzalez at robertog@nhsoc.org or call 714-490-1250, or visit our web site – www.nhsoc.org – for additional information. Orange County homeowners can also visit www.findaforeclosurecounselor.org to find additional NFMC Program-funded counseling agencies in our area. About Neighborhood Housing Services of Orange County NHS OC’s Home Preservation program promotes foreclosure prevention through education, face-to-face counseling, and community outreach. This three pronged approach ensures that NHS OC reaches as many distressed borrowers as possible while providing individual, customized counseling. NHS OC is a HUD-approved housing counseling agency with counselors that are certified foreclosure prevention experts.
6 Things you Should Know Scams aren’t always easy to spot – but it helps if you know the warning signs to look for. Here are six red flags to indicate that you may be dealing with a loan modification scammer: 1. A company/person asks for a fee in advance to work with your lender to modify, refinance or reinstate your mortgage. They may pocket your money and do little or nothing to help you save your home from foreclosure. 2. A company/person guarantees they can stop a foreclosure or get your loan modified. Nobody can make this guarantee to stop foreclosure or modify your loan. Legitimate, trustworthy HUD-approved counseling agencies will only promise they will try their very best to help you. 3. A company/person advises you to stop paying your mortgage company and pay them instead. Despite what a scammer will tell you, you should never send a mortgage payment to anyone other than your mortgage lender. The minute you have trouble making your monthly payment, contact your mortgage lender. 4. A company pressures you to sign paperwork that you haven’t had a chance to read, and you don’t fully understand. A legitimate housing counselor would never pressure you to sign a document before you had a chance to read and understand it. 5. A company claims to offer “government-approved” or “official government” loan modifications. They may be scam artists posing as legitimate organizations approved by, or affiliated with, the government. Contact your mortgage lender first. Your lender can tell you whether you qualify for any government programs to prevent foreclosure. And, remember, you do not have to pay to benefit from government-backed loan modification programs. 6. A company/person you don’t know asks you to release personal financial information online or over the phone. You should only give this type of information to companies that you know and trust, like your mortgage lender or a HUD Find a HUD Approved Counsleing Agency in your area http://www.findaforeclosurecounselor.org/network/nfmc_lookup/ Sacramento – Attorney General Edmund G. Brown Jr. today issued a consumer alert warning California homeowners to avoid individuals and businesses that charge up up-front fees for foreclosure relief services in light of a just-enacted state law that makes this “abusive practice” subject to prosecution. “Over the past two years, unscrupulous attorneys and real estate brokers have abused their trusted roles and exploited desperate homeowners seeking to avoid foreclosure,” Brown said. “The loophole that allowed this abusive practice to continue has now been closed, and homeowners should avoid any person charging up-front fees for foreclosure relief services.” Earlier this week, Governor Schwarzenegger signed into law Senate Bill 94, which immediately makes it unlawful for any licensed attorney or real estate agent “who negotiates, attempts to negotiate, arranges, attempts to arrange, or otherwise offers to perform a mortgage loan modification or other form of mortgage loan forbearance for a fee or other compensation paid by the borrower…to claim, demand, charge, collect, or receive any compensation until after the [attorney or agent] has fully performed each and every service the licensee contracted to perform or represented that he, she, or it would perform.” Until now, licensed attorneys and real estate brokers could charge advance fees under certain limited circumstances. Foreclosure scam artists often sought to exploit this exception. The new law closes this loophole. Brown has made it a top priority to protect homeowners and combat loan modification fraud in California. In August, threatening possible criminal and civil prosecution, he ordered 386 mortgage foreclosure consultants to register with his office and post $100,000 bond. Brown also ordered more than two dozen foreclosure assistance companies to substantiate suspect claims made on the internet and in direct mail advertising. This action followed a nationwide sweep in July that led to lawsuits against 21 individuals and 14 companies who ripped off thousands of homeowners seeking mortgage relief. In total, Brown has sought court orders to shut down more than 30 companies and has brought criminal charges and obtained lengthy prison sentences for dozens of deceptive loan modification consultants. Loan modification consultants continue to exploit homeowners desperate for relief. This year, Brown’s office has received more than 2,500 complaints against loan modification consultants and their businesses. This is a dramatic jump from 2008, when less than 200 complaints were filed. As part of today’s consumer alert, Brown offered the following tips to homeowners: Don’t pay up-front fees. Foreclosure consultants are prohibited by law from collecting money before services are performed. Don’t ignore letters from your lender or loan servicer. Responding to those letters is your best bet for saving your house. Don’t transfer title or sell your house to a “foreclosure rescuer.” Beware! This is a scam to convince homeowners they can stay in the home as renters and buy their home back later. It might also be part of a fraudulent bankruptcy filing. Either way, a scammer can then evict the victim and take the home. Don’t pay your mortgage payments to anyone other than your lender or loan servicer. Mortgage consultants often keep the money for themselves. Never sign any documents without reading them first. Many homeowners think that they are signing documents for a loan modification or for a new loan to pay off the mortgage they are behind on. Later, they discover that they actually transferred ownership of their home to someone who is now trying to evict them. If someone demands an upfront fee for foreclosure assistance services, you can report them to the Attorney General’s office at 1-800-952-5225, or file a complaint online at: www.ag.ca.gov/consumers/general.php For more information on the Brown’s action against loan modification fraud visit: http://ag.ca.gov/loanmod. The text of Senate Bill 94 can be found at: http://www.leginfo.ca.gov/pub/09-10/bill/sen/sb_0051-0100/sb_94_bill_200… |
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U.S. REPRESENTATIVE ED ROYCE (R), 40TH DISTRICT
