My Home – My Future

SELF-HELP STEPS TO RETAIN HOMEOWNERSHIP

 

 

Many homeowners today are facing the “PERFECT STORM” for mortgage foreclosures.  Rising homeownership costs, advancing debt, declining incomes, job loss and a weakening state economy have doubled foreclosures in Oakland County over the past year.

 

To help sustain the highest degree of homeownership possible and address the adverse affects on our families, neighborhoods and business community, Oakland County Executive L. Brooks Patterson has initiated foreclosure intervention and prevention actions led by a collaboration of professional housing counseling agencies including Oakland County, Oakland Livingston Human Service Agency (OLHSA) and Lighthouse Community Development.

 

 “This group has developed immediate plans to help families already in the foreclosure process as well as educate families who may be behind on their mortgages about the process to deal with the delinquency,” Patterson said. “While some foreclosures may be inevitable due to a prolonged decrease in household income, there are steps homeowners can take on their own or with the assistance of a housing counselor to stop the sheriff sale.”

 

If you need help with a foreclosure or are delinquent in your mortgage payments, call the following agencies immediately for free help:

  • Oakland County’s Housing Counselor (248) 858-5402
  • Lighthouse of Oakland County (248) 920-6200
  • OLHSA  (248) 209-2616

 

Homeowners can take immediate action to halt the transition from delinquency to default and foreclosure. Self-help steps include:

  • Identify the real reason you fell behind on your payments
  • Determine if you have overcome the hardship that caused you to

           fall behind

  • Track expenses, prepare a budget and review
  • Create an emergency budget eliminating all unnecessary expenses
  • Eliminate/decrease discretionary spending until caught up (fast

           food, dining out, lottery tickets, reduce smoking, vending machine

           snacks, unneeded clothing purchases, etc.)

  • Free up income by eliminating paying for items you are not using or

           could do without: magazine subscriptions, extra cable channels,

           pay-per view and extra minutes on cell phone. Increase deductibles

           on insurances

  • Put away all credit cards
  • Increase income if possible
  • Revise budget to see what you can reasonably pay on your

mortgage (current payment plus additional payments on delinquency)

  • Contact your lender.  Explain the situation and negotiate a doable workout plan
  • Contact a legitimate HUD housing counseling agency
  • Always pay your mortgage before any other debt

 

Timely communication with your lender is key.  Mortgage companies can offer forbearance plans and loan modifications. If it is an FHA mortgage, a partial claim is possible. If you are over 62 and have equity, you may want to research a reverse mortgage.