Mortgage Default FAQs | Predatory Lending FAQs
Reverse Mortgage FAQs | Preguntas Frecuentes (Spanish)
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Q: Why should I contact a housing counselor?
A: The prospects for positive resolution are greatly increased when working with a housing counselor. Our knowledgeable and experienced counselors work daily with mortgage companies and thoroughly understand the foreclosure process.
Q: Is Solid Ground a HUD-approved counseling agency?
A: Yes, we are approved by the U.S. Department of Housing and Urban Development (HUD) as a comprehensive housing counseling agency.
Q: If I meet with a counselor will they take care of the paperwork?
A: No. While our housing counselors will do everything they can to help our clients find a favorable outcome, we have found that the most successful resolutions are achieved when the homeowner is involved in every step of the process. Our counselors give clients the tools and guidance to understand, complete and deliver the necessary paperwork.
Q: Do you refinance loans?
A: No, we are not lenders and we cannot refinance loans.
Q: Are you able to help me get a modification?
A: Our counselors will explain all the tools available to prevent foreclosure. We will put the client in touch with the right department at their mortgage company to explore the options that may exist. Your success rate will depend on your capacity to produce income and your ability to minimize expenses while overcoming the crisis. Your lender makes the ultimate decision on approving your modification.
Q: Do I need to be two or three months behind before I qualify for a loan modification?
A: No, you can apply for a loan modification even when you are current. As long as you have a financial hardship and you believe this hardship is putting you at risk of falling behind on your mortgage payment, you can apply for a loan modification under the Home Affordable Program.
Q: Does my loan need to be owned by Fannie Mae or Freddy Mac to qualify for the Home Affordable program?
A: No. Only the refinance part of the Home Affordable program requires your loan to be owned by Fannie Mae or Freddy Mac but not for the Loan Modification part.
Q: How do I find out whether or not my loan is owned by Fannie Mae or Freddy Mac?
A: To determine if your loan is owned by Fannie Mae or Freddie Mac, go to http://loanlookup.fanniemae.com/loanlookup or https://ww3.freddiemac.com/corporate.
Q: How long does it take before I know that my lender has approved my modification request?
A: The process can take upwards of 90-100 days to complete.
Q: What will happen if my home is in foreclosure by the time I contact my lender to apply for a mortgage?
A: While you are in the process of applying for a modification, the foreclosure process is halted until a decision is made by your lender to approve or not approve a modification.
Q: Where do I find more information about the Home Affordable Program?
A: You can get more information about the Home Affordable Program at www.makinghomeaffordable.gov.
Q: Are lenders obligated to provide me with the Home Affordable Modification Program (HAMP)?
A: No. HAMP is a voluntary program and lenders can choose not to participate.
Q: Can I qualify for a loan modification without a job?
A: No. You must have some sort of income other than unemployment benefits in order to qualify for a loan modification.
Q: How long do counseling sessions typically last?
A: Our counseling sessions generally last between 45 to 90 minutes.
Q: Do I need to make an appointment for mortgage default counseling?
A: Yes, we have a high volume of calls every week and we call people back on a first-come first-served basis. Our hotline number, 206.694.6766 is open Mondays, Wednesdays and Thursdays from 10:30 am until 4:30 pm. For a quicker response, log on to www.solid-ground.org/Programs/Housing/Mortgages and fill out our online mortgage default intake sheet.
Q: Why should I meet with a housing counselor?
A: Counseling is required in order to be sure that borrowers understand what they are getting into when they take out a reverse mortgage loan. The counselor is an unbiased third party whose goal is simply to provide information to help you make your own decision. In order to receive a HUD certificate required for all FHA reverse mortgage products, a borrower must undergo counseling.
Q: Are you HUD approved?
A: Yes. Solid Ground is approved by the U.S. Department of Housing and Urban Development (HUD) as a comprehensive housing counseling agency.
Q: Are there any fees for reverse mortgage counseling?
A: Yes, currently, Solid Ground charges $125 for reverse mortgage counseling services.
Q: Who is eligible for a reverse mortgage?
A: All borrowers must be at least 62 years of age; must occupy the home as a primary place of residence (at least 6 months out of the year); must have adequate equity in the home; and the property itself must be eligible and meet HUD minimum property standards.
Q: If I obtain a reverse mortgage, will I have a monthly payment?
A: No. There are no monthly payments associated with a reverse mortgage loan.
Q: How does a reverse mortgage work and when does it become due and payable?
A: The reverse mortgage loan allows an eligible senior homeowner to access a portion of the equity in his or her home without having to sell, move or undertake a monthly payment obligation. The loan becomes due and payable when the last surviving borrower dies, sells the property or vacates the property for more than 6 -12 months.
Q: What happens when the mortgage becomes due?
A: The borrower or estate is obligated to pay back the money borrowed, with accumulated interest. This is done by either selling the property or obtaining other funds to pay off the reverse mortgage. The borrower or estate generally has 3-6 months to pay back the loan. Extensions beyond 6 months must be approved by HUD. Any remaining equity after the loan balance is paid still belongs to the borrower/ estate.
Q: What if the borrower owes more than what the house is worth at the time the loan becomes due?
A: The borrower is only liable to pay back a maximum of the loan balance or the net proceeds of the sale of the house, whichever is less. If the loan balance is greater than property value, the deficit is paid by the mortgage insurance fund that is part of the HECM program and it’s called the non-recourse feature.
Q: Is it possible to get cash from a reverse mortgage?
A: Yes, you can structure your reverse mortgage loan however you want to fit your own personal needs. You can receive a monthly payment, a line of credit or a lump sum depending on how much equity you have available in your home.
Q: Is an appraisal required?
A: Yes. HUD requires the completion of an FHA appraisal in order for the homeowner to obtain a reverse mortgage. The property must be HUD-approved and repairs must not exceed 15% of the total value of the home.
Q: How long do counseling sessions typically last?
A: Our counseling appointments generally last one hour to 90 minutes.
Q: Do I need to make an appointment for reverse mortgage counseling?
A: Yes, you can call our hotline at 206.694.6766. Our line is open Mondays, Wednesdays and Thursdays from 10:30 am until 4:30 pm.
Q: What is Predatory Lending?
A: Predatory lending is a term used to describe unfair, deceptive or fraudulent lending practices. Predatory lending strips borrowers of their home equity, which can result in a homeowner losing their home through foreclosure.
Q: What are some signs of Predatory Lending?
A: When the lender…
- Falsely inflates the borrower’s income.
- Charges excessive, unnecessary fees.
- Gives a borrower a loan with a high interest rate and promises to refinance within two to three months into another loan with a lower interest rate.
- Intentionally lends money they know the borrower cannot afford to repay.
Q: Do predatory lenders tend to target different communities?
A: Anyone who owns a home can become a victim of predatory lending practices. Most predatory lenders tend to prey on vulnerable populations such as senior citizens, people of color and immigrant communities. The Center for Responsible Lending estimates that predatory mortgage lending costs borrowers approximately $9.1 billion each year.
Q: How do I avoid a Predatory Mortgage Loan?
A: Some tips for working with lenders…
- Interview lenders, ask for references, then check the references.
- If a lender asks you to sign blank documents, don’t sign!
- If a lender tries to pressure you into a loan you don’t feel comfortable with, walk away.
- Ask for the loan documents before the closing/signing date so you can review them.
- Read every page of the documents. If you do not understand something, ask questions.
- You can contact a HUD-certified agency and ask a HUD Housing Counselor to review your loan documents (FREE!).
- Any firm taking a fee for services must be licensed in the state of Washington. Check the Washington State Department of Financial Institutions website at www.dfi.wa.gov to find information and verification of licenses on financial institutions.
Q: I am having trouble paying my mortgage loan, what are some things I should not do?
A: Do not pay a large fee to a business or someone who…
- Promises they can save your home and stop the foreclosure process – or advises you not to contact your lender, lawyer, or a housing counselor.
- Accepts payment only by cashier’s check or wire transfer.
- Encourages you to temporarily sell them your home and promises to “resell” it to you at an affordable cost when your finances are in order. This is called a foreclosure rescue scam.
Q: What should I do if I need help with my mortgage?
A: Contact your lender or servicer immediately. You may be able to negotiate a new repayment schedule. Lenders generally don’t want to foreclose and are usually willing to negotiate. If you still need help, come to a government agency and ask to speak to a HUD-certified housing counselor.
Q: How do I find a HUD-certified counselor?
A: Contact HUD at 877.833.2483 or log on to www.hud.gov.
Preguntas y Respuestas en Consejería de Pagos Hiptecarios Atrasados
P: ¿Por que debo contactarme con un consejero hipotecario?
R: Las probabilidades de resolución positiva aumentan mucho mas cuando se trabaja con un consejero de vivienda. Nuestros consejeros experimentados trabajan a diario con las compañías hipotecarias y comprenden a fondo el proceso de ejecución hipotecaria.
P: ¿Es Solid Ground una agencia de asesoría aprobada por HUD?
R: Sí, somos aprobados por el Departamento de Vivienda y Desarrollo Urbano de Estados Unidos (HUD) como una agencia de vivienda de asesoría integral.
P: ¿Si me entrevisto con un consejero se encargarán de los trámites?
R: No. Aunque nuestros asesores de vivienda harán todo lo posible para ayudar a nuestros clientes a encontrar un resultado favorable, hemos descubierto que las resoluciones de mayor éxito se logran cuando el dueño está involucrado en cada paso del proceso. Nuestros consejeros le entregan a los clientes las herramientas y orientación necesaria para comprender, completar y entregar el papeleo necesario.
P: ¿Usted refinancia los préstamos?
R: No, no somos prestamistas y no podemos refinanciar préstamos.
P: ¿Ofrece préstamos ó fondos de rescate?
R: Nosotros trabajamos con familias de bajos ingresos y tomamos algunos casos en base a su elegibilidad.
P: ¿Puede usted ayudarme a conseguir una modificación?
R: Nuestros consejeros le explicarán todas las herramientas disponibles para evitar la ejecución hipotecaria y poner al cliente en contacto con su prestamista para explorar las opciones disponibles para usted. Su probabilidad de éxito dependerá de su capacidad para generar ingresos y su capacidad para minimizar los gastos mientras sobrevive la crisis económica.
P: ¿Tengo que estar dos o tres meses atrasado antes de calificar para una modificación de préstamo?
R: No, usted puede solicitar una modificación de préstamo, aun cuando este al día en sus pagos. Mientras tenga una dificultad financiera y cree que esta dificultad lo pone en riesgo de atrasarse en los pagos de su hipoteca, usted puede solicitar una modificación de su préstamo bajo el programa de “Making Home Affordable.”
P: ¿Necesita mi préstamo ser propiedad de Fannie Mae ó Freddy Mac para calificar para el programa “Making Home Affordable”?
R: No. Sólo la parte de refinanciamiento del programa de “Making Home Affordable” requiere que su préstamo sea propiedad de Fannie Mae ó Freddy Mac, no la parte de modificación de prestamos.
P: ¿Cómo puedo saber si mi préstamo es de la propiedad de Fannie Mae o Freddy Mac?
R: Para determinar si su préstamo es propiedad de Fannie Mae ó Freddie Mac busque en www.freddiemac.com/corporate ó http://loanlookup.fanniemae.com/loanlookup.
P: ¿Dónde puedo encontrar más información sobre el Programa de Making Home Affordable?
R: Usted puede obtener más información acerca del programa de MHA en www.hud.gov.
P: ¿Están obligados los prestamistas a proveerme de una modificación a travéz del programa MHA?
R: No. El MHA es un programa voluntario y los prestamistas pueden optar por no participar.
P: ¿Puedo calificar para una modificación de préstamo sin un trabajo?
R: No. Usted debe tener algún tipo de ingreso fuera de sus beneficios de desempléo para calificar para una modificación de préstamo.
P: ¿Cuánto tiempo duran las sesiones de consejería?
R: Nuestras sesiones de asesoría en general duran entre 45 a 90 minutos.
P: ¿Tengo que hacer una cita para recibir asesoría sobre un pago de hipoteca atrasado?
R: Sí, tenemos un alto volumen de llamadas cada semana y regresamos las llamadas basándonos en el orden de registro de su llamada. Nuestra línea gratuita 206.694.6766 está abierta los dias lunes y miércoles desde las 10:00 am hasta las 5:00 pm. Para una respuesta más rápida conéctese en línea en www.solid-ground.org/Programs/Housing/Mortgages y llene el formulario de atraso hipotecario (mortgage default) que se encuentra bajo los servicios de asesoría de vivienda.
Phones: Mortgage Counseling Client Hotline: 206.694.6766
Predatory Lending Client Hotline: 206.694.6864
TTY: 7.1.1
Email: housingcounseling@solid-ground.org
FAX: 206.694.6795
Address: Housing Counseling
Solid Ground
1501 North 45th Street
Seattle, WA 98103-6708