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 [...]]]> 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

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, [...]]]>

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/

“Over the past two years, unscrupulous attorneys and real estate brokers [...]]]> 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…

NHS OC’s home ownership preservation program promotes foreclosure prevention through educational workshops, face-to-face counseling and community outreach. This three-pronged approach ensures that NHS OC reaches out to as many distress borrowers are possible while providing individual, customized counseling.

Forclosure Prevention Workshops are 2-3 hour classes held twice a month that [...]]]>

Foreclosure Prevention Help