This program provides the lender with incentives to reduce the current mortgage payment to  38% Front-End DTI (DTI is Debt-to-Income ratio). In plain English that means that the sum of all mortgage expenses, such as payment, property taxes, insurance and so forth, must be reduced to 38% of current pre-tax income. For example,  pre-tax income is $3,000. Maximum DTI allowed to qualify is $1,140, which is 38% of  income. The lender must reduce the mortgage portion of DTI to a  number that when combined with the property insurance, property taxes and other related mortgage expenses, does not exceed $1,140.

If the lender is able to make those reductions, the Department of Treasury will provide a number of incentives as compensation.

First, Treasury will lower TDI even further, matching lenders concession on dollar-to-dollar basis. Treasury incentives, combined with lender reductions, will result in DTI of 31% or in above example – $930 per month.

Second, Department of Treasury will provide the lender with a $1,000 up-front compensation. Additionally, for every year that you stay in this program, and keep up with your payments, the servicer will receive up to a $1,000 per year, for three years.

Third, if you are current on your mortgage (meaning, less than 30-days late) or have agreed to participate in this program before you were 30-days late, the  lender will receive an additional $1,500 as a bonus. Now, take a minute and add these bonuses. Your lender stands to get as much as $5,500 if you were to refinance!

Do I qualify?

The program requirements are relatively modest. Along with  tax returns, pay stubs, form 4506-T (Request for Transcript of Tax Return) the requirements are:

• Lender must be able to reduce DTI to 38% as described above
• The home must be an owner occupied, single family 1-4 unit property
• The home must be your primary residence
• The home may not be investor-owned
• The home may not be vacant or condemned
• Borrowers in bankruptcy are not automatically eliminated from consideration for a modification
• If you are in foreclosure – you can qualify for a modification without waiving your legal rights
• Unpaid mortgage balance must be equal to or less than: $729,750
• There is no minimum or maximum LTV ratio for eligibility purposes

What will this cost me?

You know in life there are no “free” things. Well, in this case, as strange as it sounds everything is free. Moreover you actually get paid if you are lucky enough to have a lender that will consider this program.

• There are no modification fees or charges borne by the borrower.
• Modification fees and charges to the servicer will be reimbursable by the investor. These include notary fees, property valuation and other required fees. Servicer reimbursement by the investor will take place within the normal process between the servicer and the investor.
• Unpaid late fees will be waived for the borrower. These include late fees prior to the start of the Trial Period and accrued during the period.
• The servicer will cover the cost of the credit report.

Additionally, if you pay your new mortgage on time you will be eligible to accrue up to $1,000 each year in Pay-for-Performance Success Payments. And this works for up to five years – that means you can receive up to $5,000. The payment will be directed to the servicer, who will use these payments to reduce the principal balance of your mortgage.

How do I sign up?

The first step is to contact your lender. Regardless of your situation, this program is available, and lenders are considering it.  You must prove to your lender, that this program is a better deal for them. How do you do that? Well, that’s for you to decide…

Official and somewhat confusing description of this program

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Tennessee Housing Counselors are familiar with the various foreclosure prevention arrangements that lenders will consider. Working with a Certified Housing Counselor is a good way to make sure the advice you receive is accurate, reliable, and appropriate.  You Certified Housing Counselor will advise on Tennessee law that may help you to avoid foreclosure. Local counselors are also aware of Tennessee and federal programs that provide additional financial, legal or foreclosure assistance that you may need.

Remember, some housing counselors may charge a fee, so be sure to ask whether their services are free when you contact their office.  Meet with the counselor before your mortgage payments are too far behind. Our hope is that the information you find here will help you to avoid foreclosure, and we encourage you to take action right away.

Homeownership Preservation Foundation

Homeowner’s HOPE™, a counseling service provided by the Homeownership Preservation Foundation. Since 2002, HOPE foreclosure counselors have provided advice and education to more than 300,000 homeowners.

Homeownership Preservation Foundation helps homeowners avoid foreclosure. Foundation is an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners and the help is free. HOPE counselors are experts in foreclosure prevention and trained to set up a plan of action designed to stop foreclosure

Foreclosure Legal Assistance Project program offered by Legal Aid

There are eight Legal Aid or Legal Services organizations in Tennessee. These are not-for-profit law offices that give free foreclosure legal help to people who cannot afford to pay a lawyer. Legal Aid cannot help everyone with every legal problem. Even if Legal Aid cannot represent you directly in a case, they may be able to tell you where to get help or give you advice that will help you handle the case yourself.

The Legal Services organizations also have “Pro Bono” programs. Many private attorneys have agreed to help provide free legal help to low income persons through this program. Your case may be referred to a volunteer attorney who will represent you free of charge through the Pro Bono program.

The Legal Aid offices do not charge for the legal foreclosure help that is given. You may have to pay court costs to take a case to court. You may also have to pay for some other expenses, such as, copies of records, court reporters, and so forth. However, you will not be charged for the attorney’s or paralegal’s time or advice.

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Free foreclosure counseling is available. Contact the State of Washington Homeownership Information Hotline at 1.877.894.HOME for a list of participating foreclosure counselors in Washington State.

Washington Foreclosure Prevention Counselors

Washington Housing Counselors are familiar with the various foreclosure prevention arrangements that lenders will consider. Working with a Certified Housing Counselor is a good way to make sure the advice you receive is accurate, reliable, and appropriate.  You Certified Housing Counselor will advise on Washington law that may help you to avoid foreclosure. Local counselors are also aware of Washington and federal programs that provide additional financial, legal or foreclosure assistance that you may need.

Remember, some housing counselors may charge a fee, so be sure to ask whether their services are free when you contact their office.  Meet with the counselor before your mortgage payments are too far behind. Our hope is that the information you find here will help you to avoid foreclosure, and we encourage you to take action right away.

Homeownership Preservation Foundation

Homeowner’s HOPE™, a counseling service provided by the Homeownership Preservation Foundation. Since 2002, HOPE foreclosure counselors have provided advice and education to more than 300,000 homeowners.

Homeownership Preservation Foundation helps homeowners avoid foreclosure. Foundation is an independent nonprofit that provides HUD-approved counselors dedicated to helping homeowners and the help is free. HOPE counselors are experts in foreclosure prevention and trained to set up a plan of action designed to stop foreclosure

Foreclosure Legal Assistance Project program offered by Legal Aid

If qualified, foreclosure case is analyzed quickly and in detail to determine what can be done to stop foreclosure. Legal Aid refers clients with potentially fee generating predatory lending cases to the private consumer bar. Legal Aid does not have the resources to represent everyone who qualifies and needs legal services. You can reach Legal Aid at (800) 999-8904.

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Indiana began addressing the problem of foreclosure with the launch of a major statewide initiative to assist Hoosiers who are in danger of losing their homes. The Indiana Foreclosure Prevention Initiative was developed by a coalition of community organizations, housing-related agencies, government agencies, lenders and banks, known as the Indiana Foreclosure Prevention Network (IFPN).

Through this unique partnership of the public, private and nonprofit sectors, a toll-free helpline, 1-877-GET-HOPE was established. The helpline is available seven days a week, from 8 a.m. to 8 p.m. For anyone who may be at risk of foreclosure, the helpline provides FREE, CONFIDENTIAL FINANCIAL COUNSELING with no obligation or commitment.

Lenders Offer Options to Stop Foreclosure

Lenders in Indiana offer options to help you avoid foreclosure. However, these options work best when your loan is only one or two payments behind. The farther behind you are on your payments, the fewer options are available. Contact your mortgage lender at the first sign of difficulty to prevent foreclosure.

Indiana Foreclosure Prevention Counselors

Indiana Housing Counselors are familiar with the various foreclosure prevention arrangements with your mortgage lender will consider. Working with a Certified Housing Counselor is a good way to make sure the advice you receive is accurate, reliable, and appropriate.  You Certified Housing Counselor will advise on Indiana law that may help you avoid foreclosure. Local counselors are also aware of Indiana and federal programs that provide additional financial, legal or foreclosure assistance that you may need.

Remember, some housing counselors may charge a fee, so be sure to ask whether their services are free when you contact their office.  Meet with the counselor before your mortgage payments are too far behind and timeline has passed. Our hope is that the information you find here will help you to avoid foreclosure, and we encourage you to take action right away.

Indiana Legal Services

Indiana Legal Services (ILS) is a nonprofit law firm that provides free foreclosure legal assistance to eligible low-income people throughout the state of Indiana. ILS helps clients who are faced with foreclosure problems.

Over half a million people in Indiana live below the poverty level. ILS recognizes and supports other agencies around the state that provide legal assistance to the poor, such as legal aid societies and pro bono programs. Even with all of these agencies working hard, it is difficult to meet the legal needs of the poor in Indiana.

ILS receives funds from many different sources, including funding from Congress through the Legal Services Corporation, funding through United Way agencies and other agencies around the state. ILS also accepts private donations.

In 2004, ILS served over 11,000 low income people. Some of these cases were full representation cases, where an ILS attorney represented the client in a court or agency action. Some of these cases involved giving a client advice about his or her legal rights and what action the client could take.

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Governor Deval Patrick joined state and local officials, non-profit leaders, mortgage lenders and city homeowners, to unveil his comprehensive foreclosure prevention plan designed to keep people in their homes and to stabilize neighborhoods across the Commonwealth.

The five-point plan consists of targeted neighborhood stabilization pilot programs in Lawrence and five other Bay State cities, transition resources from lenders and servicers, consumer outreach and education, lending best practices and coordination to increase utilization of MassHousing’s loan refinancing program.

“A surge in foreclosures is taking a real toll on families, entire neighborhoods and local economies here in Lawrence and across the Commonwealth,” said Governor Patrick.  “Our prevention plan is comprehensive and gives distressed homeowners and communities the immediate and long-term relief they need right now.”

Transitional Foreclosure Resources

To assist these crucial efforts, the administration’s prevention plan calls on participating lenders to provide $5,000 to the housing counseling agency working with an eligible homeowner who loses his or her home to foreclosure or gives a deed in lieu of foreclosure.  The transition resources will enable the homeowner to pay for first and last month’s rent and moving expenses.  The remaining money will be retained by the non-profit organization to offset the administrative cost of its counseling programs. Transition resources will be limited to borrowers who are working with a qualified housing counselor approved or sponsored by NeighborWorks, CHAPA or HUD and who have an ARM first mortgage on an owner-occupied one through four-family home and meet other criteria.

The “Mortgage Relief” Initiative

The Mortgage Relief initiative has grown from five regional banks to nearly fifty banks of every size, with branches throughout much of New England. The participating banks represent a safe and sound place to discuss foreclosure prevention, with expertise and respect. Whenever possible, the banks participating in the initiative will help eligible homeowners refinance into conventional loans that will better meet their needs.

The banks aim to help homeowners with high-rate, nontraditional, or resetting loans who are having difficulty making payments (or expect to).

Banks that serve the region, regardless of their size, have a stake in the success of the New England economy. The banks participating in the Mortgage Relief Initiative:

• have committed to reach out to borrowers in high-rate mortgages with difficult terms;
• are expanding their utilization of programs that may help borrowers with limited home equity (programs like Federal Housing Authority loans, and loans guaranteed by state agencies);
• have designated one or more “go to” lenders who can help borrowers explore their mortgage relief options;

Borrowers in those difficult situations should work to contact the servicer of their mortgage as soon as possible (in particular, the servicer’s loss mitigation department), or a mortgage-counseling service.

Home Saver Foreclosure Prevention Program

Are you worried about keeping up with your monthly mortgage payments? Were you surprised by the terms of your loan after you closed your mortgage? MassHousing’s Home Saver program may be able to help you avoid losing your home through foreclosure.

Home Saver is privately financed; no taxpayer dollars are used for the program.

Home Saver is a counseling and loan program that helps borrowers who are unable to repay their mortgage. It is a proactive step that home owners take before their mortgage becomes unaffordable, and before foreclosure becomes a real possibility. Home Saver includes a mandatory counseling component and a refinancing of your existing loan.

Home Saver assists home owners with modest incomes who are burdened by an unaffordable loan. Given the loan’s terms and the borrower’s income, assets, obligations and other considerations, there could have been no reasonable expectation that the loan could be repaid.

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The North Carolina Home Protection Program and Loan Fund helps workers who lose their jobs as the result of changing economic conditions avoid foreclosure of their homes. Created by the General Assembly in 2004 and operated by the North Carolina Housing Finance Agency.

If you qualify, you can receive a zero-interest loan that is usually equal to the lesser of $24,000, 24 months of monthly mortgage payments, or the minimum amount required to bring loans and other mortgage-related obligations current. The loans can be either short-term—to bring a mortgage current, or long-term—to keep a mortgage current for up to 24 months while you participate in an approved retraining program.

A unique component of the program is a temporary 120-day stay of foreclosure. Under N.C. statute (Session Law 2005-276, Section 20.2, as amended), once a homeowner’s completed application has been received by the Agency, the stay of foreclosure is imposed. While the stay protects you from foreclosure, it does not protect against collection, prevent late payments from being included on your credit report, or relieve you from honoring any agreements to pay mortgage-related obligations.

Homeowners apply through participating local agencies, which offer housing counseling and determine whether applicants are eligible for assistance from the loan fund. Homeowners must provide all necessary information with the application, including the circumstances that caused the financial hardship and the factors affecting prospects for resuming mortgage payments. Please note that the counseling agency’s determination of eligibility for a loan does not guarantee assistance; the North Carolina Housing Finance Agency approves or denies all loans.

To be eligible for a loan, you must meet all of the following criteria:

• have lost your job due to changing economic conditions
• have a mortgage that is secured by real property
• demonstrate an ability to resume your mortgage payment after the assistance ends, and
• have had a stable employment and credit history prior to losing your job.

Assistance is available on a first-come, first-serve basis, and until funds are expended. Homeowners who need assistance should be directed to the Home Protection Program Counseling Agency in their area.

State Home Foreclosure Prevention Project

The State Home Foreclosure Prevention Project (SHFPP) was created by recent emergency legislation signed into law by Governor Easley on August 17, 2008. The SHFPP is a partnership, led by the Commissioner of Banks, to reduce subprime foreclosures in North Carolina. The partners include housing counselors, legal assistance organizations, mortgage servicers and community organizations.

A homeowner facing foreclosure on a subprime loan made between January 1, 2005 and December 31, 2007 should receive a letter from their mortgage servicer 45 days prior to foreclosure with information on resources available to assist the homeowner in avoiding foreclosure.

By providing quality legal representation in foreclosure actions, the Project saves homes, preserves credit ratings and strives to make prohibitive the cost of conducting business for the unscrupulous brokers and lenders.

The Mortgage Foreclosure Project includes a “team” of attorneys and staff who are located in LANC offices and who specialize in foreclosure defense and predatory lending law. The MFP team acts on referrals from Legal Aid of North Carolina offices and community organizations throughout North Carolina.

Legal Aid of North Carolina:  866-219-LANC (866-219-5262)

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The Office of the Courts Foreclosure Mediation Program provides homeowners with access to housing counselors and court trained mediators to resolve foreclosure actions by proposing work-out and payment arrangements between distressed borrowers and lenders. The program will also provide lawyers to income-eligible homeowners.

This program is a partnership of The Judiciary, the Office of the Attorney General, the Housing & Mortgage Finance Agency, Legal Services of New Jersey, the Office of the Public Advocate and, the Department of Banking.

If the hotline is busy due to heavy call volume, visit www.lsnjlaw.org/foreclosure and complete the online form. Someone will get back to you as soon as they can. All submissions are responded to in the order they are received.

Call Toll Free: 1-888-989-5277. The Foreclosure Mediation Hotline is open from 8 a.m. to 6 p.m. Monday through Friday.

Home Ownership Preservation Refinance Program (HPRP)

New Jersey Housing and Mortgage Finance Agency  HPRP provides an affordable financing alternative to borrowers whose current mortgage is no longer suitable for their financial situation as well as closing cost assistance and homeownership counseling. HPRP is a 30- or 40-year loan, refinanced through a state-approved lender, with a fixed rate of 8 percent for a 30-year loan and 8.125 percent for a 40-year loan. The loan can be equal to 100 percent of the appraised value of the home or 103 percent of the appraised value if private mortgage insurance is included in the mortgage loan.

• To participate in the program:
• Families may earn up to 140 percent of the area median income
• Must demonstrate a financial hardship
• Home must be their primary residence
• And must have been denied a loan modification

If the loan has already reset, a borrower may have up to three 30-day or one 60-day delinquency during the past 12 months. There is no minimum credit score requirement. Borrowers seeking to refinance before a rate reset must have no late payments during the past 12 months, must have a credit score of 575 or higher. Additionally, borrower may not own any other residential real estate property and must show the ability to repay the loan.

The Anti-Predatory Lending Project (APLP)

If you feel you have been taken advantage of or misled by a lender, contact Legal Services of New Jersey. Legal Services of NJ provides legal representation to low-income New Jersey homeowners facing foreclosure. Homeowners regardless of income level may file a complaint with the NJ Department of Banking and Insurance by calling 800-446-7467.

The Anti-Predatory Lending Project (APLP) at LSNJ provides free attorney advice and legal representation to low-income New Jersey homeowners who are facing foreclosure or who may be at an increased risk of foreclosure because they were deceived or treated unfairly by a mortgage broker, mortgage lender, or mortgage servicer. The APLP also helps victims of foreclosure rescue scams—people who are in danger of losing their homes after someone falsely promised to help them avoid foreclosure. Contact the APLP through LSNJ’s statewide, toll-free legal hotline, at 1-888-LSNJ-LAW (1-888-576-5529).

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The Pennsylvania Housing Finance Agency (PHFA) has established the Foreclosure Mitigation Counseling Initiative to help interested homeowners to avoid foreclosure.

Mortgage foreclosure mitigation assistance will be made available to homeowners of owner–occupied homes with mortgages in foreclosure or in danger of default. Homeowners will be provided with such assistance that will consist of activities that are likely to prevent foreclosures and result in the “long-term affordability” of the mortgage.

The counseling sessions associated with this initiative are free services to the homeowner. Counseling and advice of all likely restructuring and refinancing strategies or the approval of a workout strategy by all interested parties is required.

Refinance to an Affordable Loan Program (REAL)

The REAL program offers attractive 30-year fixed rates. Because it combines 100 percent financing with flexible credit underwriting, it may offer relief to homeowners like you who otherwise may not qualify for typical mortgage refinance programs.

You might be eligible for a REAL loan if:

• The combined gross annual income of all borrowers may not exceed $120,000.
• You are no more than 59 days past due on your existing mortgage.
• You must have a credit score of at least 620 OR meet all of the following conditions:
  • Your mortgage payment adjusted in the last 12 months to a higher interest rate or a fully amortized payment and you have made no more than two, 30-day late payments since the adjustment.
  • Your credit history of other debt shows no more than three, 30-day late payments 12 months
  • You may borrow up to 100 percent of your home’s value based upon a current appraisal.
  • Your monthly total debt costs may not be more than 50 percent of your total gross monthly income.

If you meet the conditions above, contact a PHFA-participating REAL lender. You may also call PHFA’s toll-free consumer information hotline at 1.800.822.1174 for more details.

PHFA also offers free mortgage counseling through its network of Foreclosure Mitigation Counseling Initiative (FMCI) Agencies. These agencies can review your specific situation and help you sort through your options. They can also help you gather the information and documents required for the HERO Program which is described below.

Homeowners’ Equity Recovery Opportunity Loan Program (HERO)

HERO is a loan program designed to improve the financial situation of Pennsylvanians who are not able to afford their current mortgage payments and may face foreclosure. The HERO program provides for up to 100 percent financing but, instead of refinancing your current mortgage into a new loan, PHFA purchases your loan directly from your current lender and then sets you up on an affordable repayment agreement. This program is for borrowers not eligible for PHFA’s REAL program (Refinance to an Affordable Loan) or another mortgage refinance product available in the general market due to credit issues or owing more than your home’s current appraised value.

• HERO provides an affordable interest rate.
• PHFA services the loan so you don’t have to worry about it being sold to another lender or servicer.
• Property taxes and insurance are included in your monthly payment amount.
• If you owe more than your home’s current value, PHFA may be able to negotiate with your current lender to reduce the amount owed on your loan.
• The HERO loan may be used to pay off: the current mortgage debt, closing costs, prepayment penalties, and delinquent property taxes.
• All approved borrowers must attend in-person financial counseling at a PHFA-approved agency.

You might be eligible for a HERO loan if:

• The combined gross annual income of all borrowers may not exceed $120,000
• You have made an effort to meet your financial obligations to the best of your ability.
• You have sufficient and stable income to support timely repayment of the HERO loan in regular, monthly installments
• You own the mortgaged property and reside in it as your permanent residence
• If you have stopped making your mortgage payments, you can account for your cash flow by showing how you have escrowed, saved, or redirected those funds.
• The HERO loan must be in first lien position.

If you meet the conditions above, contact the HERO Loan Program Specialist at 1.800.822.1174. The Loan Program Specialist will further explore whether HERO may be your answer. This may include sending you a HERO Prequalification Form and requesting additional documentation relevant to your income, debts, and mortgage terms.

Emergency Mortgage Assistance Program

Thousands of Pennsylvania families faced with the possible loss of their homes through foreclosure have received help from the Homeowners’ Emergency Mortgage Assistance Program (HEMAP). This unique program, created by Act 91 of 1983, is the only one of its kind in the nation.

HEMAP is a loan program designed to protect Pennsylvanians who are financially unable to make their mortgage payments and are in danger of foreclosure. HEMAP funds loaned to prevent foreclosure are not a grant. These funds are a loan and must be repaid.

When approved for HEMAP assistance, a loan is created to bring the delinquent payments current. Two types of assistance are available to the homeowner depending on their income and financial situation: continuing mortgage assistance loans and non–continuing mortgage assistance loans.

If a homeowner qualifies for a non–continuing mortgage assistance loan, their mortgage is brought current to a specified date and the homeowner is responsible for making all subsequent monthly mortgage payments to their lender along with a monthly payment to HEMAP. The homeowner may also be required to make a cash contribution toward the mortgage delinquency at the time the HEMAP loan closes.

If a homeowner qualifies for a continuing mortgage assistance loan, their mortgage is brought current to a specified date and then HEMAP subsidizes their monthly mortgage payment to their lender.

All HEMAP loans, continuing or non–continuing, are limited to a maximum of 24 months from the date of the mortgage delinquency, or to a maximum of $60,000.00, whichever comes first.
HEMAP loan recipients are required to pay up to 40 percent of their net monthly income, as determined by HEMAP, towards their total housing expense. The minimum monthly payment/contribution to HEMAP, set by law, is $25.00 per month per mortgage assisted.

If the homeowner qualifies for a continuing mortgage assistance loan, the homeowner sends their designated monthly payment/contribution amount to HEMAP. HEMAP combines the amount sent by the homeowner with HEMAP funds and forwards the full monthly mortgage payment directly to the lender on the homeowner’s behalf. Homeowner’s contributions are set at 40 percent of the household net monthly income (NMI) less the utility expense and homeowners insurance costs, if it is not escrowed.

The interest rate on mortgage assistance loans is nine percent when household income requires repayment based on the 40 percent calculation. If income does not require repayment based on the 40 percent calculation, interest will not be charged and will be adjusted back and forth to nine percent as necessary. There is a mandatory minimum payment of $25.00 per month per mortgage assisted.

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New York State agencies are working together to help homeowners who are facing foreclosure through a coalition known as HALT (Halt Abusive Lending Transactions). The CPB and other members of HALT are spreading the message that many homeowners can avoid foreclosure and not lose their homes if they take action now.

As part of the effort to assist homeowners with risky mortgages, the State of New York Mortgage Agency (SONYMA) is offering a new program to help homeowners refinance their current mortgages with 30-year or 40-year, fixed-rate mortgages at competitive interest rates (see below).

The New York State Banking Department has also launched a campaign designed to encourage homeowners who are behind on their mortgage payments or threatened with foreclosure to seek help from their lenders, loan servicers and nonprofit housing counselors. Information and resources for homeowners who may be behind on their mortgages or facing foreclosure can be accessed at the Banking Department’s website.

Mortgage Fraud Task Force

Mortgage Fraud Task Force and the Office of the Attorney General use the many different tools at its disposal to combat mortgage fraud and predatory lending to protect New Yorkers. The Criminal Prosecutions Bureau investigates and prosecutes criminal mortgage fraud. The Civil Rights Bureau investigates predatory lending practices to prevent corrupt brokers and lenders from targeting and preying on communities.

Contact Task Force by phone: 1-800-771-7755

Home Equity Theft Prevention Act

As of February 1, 2007, certain sales of homes that are in foreclosure or default are now governed by a New York State law under the Home Equity Theft Prevention Act. If you are planning to sell a home that is in foreclosure or default, you should be aware of your rights under the Act, and know what to expect from a legitimate buyer.

If your sale is protected by the law, and your buyer fails to fulfill any of the requirements listed below you may be able to void or legally cancel the contract you have with the buyer and the sale, even after it has been signed and executed. You may also be able to sue the buyer to recover any damages.

If the sale you are considering falls under the Act (see right), the Banking Department recommends that you not enter into any agreement without first calling the Banking Department’s Consumer Helpline at 1-877- BANK-NYS (1-877-226-5697). Helpline staff can give you information about your rights, options and other resources you should consider.

Keep the Dream Mortgage Refinancing Program

Keep the Dream is a new program offered by the State of New York Mortgage Agency (SONYMA) designed to help eligible New York households with certain high-risk mortgages avoid possible foreclosure. The program enables families with adjustable rate, interest-only or other unconventional mortgages to refinance with the help of SONYMA and obtain a 30-year or 40-year fixed-rate mortgage at competitive interest rates. The program will prevent foreclosure with affordable and predictable monthly payments for the full term of the mortgage and remove the threat of losing their home.

Homeownership counseling is mandatory for homeowners who receive refinancing loans from SONYMA’s Keep the Dream Program.

New York non-profit organizations can become participating Counseling Agencies if they have been certified by HUD or certified by DHCR as a participating Neighborhood Preservation Corporation (NPC) or a Rural Preservation Corporation (RPC).

Borrowers are eligible if they can demonstrate that they have experienced a mortgage payment hardship or will face foreclosure in the near future. Generally, the program will help borrowers with adjustable rate or interest-only mortgages where the interest rate has just increased or will increase in the near future. Borrowers may also be eligible if they are less than 60 days behind on their mortgage payments because of higher payments due to an interest rate reset.

Eligible borrowers can have incomes up to 165% of the Area Median Income in New York City, Long Island and the counties of Dutchess, Orange, Ulster, Westchester, Rockland and Putnam and up to 125% of the Area Median Income for the rest of New York State.

Proceeds of the mortgage can be used to pay prepayment penalties, closing costs and pay off most second mortgages. However, proceeds cannot be used to repay other debt or expenses.

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Texas Attorney General Addresses Foreclosure

Texas Attorney General urges homeowners at risk of foreclosure to contact lenders and foreclosure counselors. Consumers who call early may have more alternatives to foreclosure.

In addition to talking directly with their lenders, Attorney General Abbott urged homeowners to talk with counselors at community nonprofit groups that are approved by the U.S. Department of Housing and Urban Development (HUD). Homeowners may call the HUD referral line at (800) 569-4287 for information on counseling centers in their communities.

“With mortgage industry leaders and public officials continuing to address the growing housing crisis, it is critically important for homeowners to take some measures to prevent their problems from escalating,” Attorney General Abbott said. “At the first sign of trouble, homeowners should contact their lenders, visit a HUD-approved counseling agency or call the HOPE hotline to explore alternatives to foreclosure. The sooner homeowners seek help, the more options that will be available to them.”

Attorney General Abbott urged homeowners to contact their lenders or loan servicers as soon as financial troubles emerge – preferably early in foreclosure timeline. By communicating with their lenders early in the process, homeowners can discuss various options to avoid foreclosure, including fee waivers; temporary deferred payments; delayed interest rate resets; refinancing; or conversion of an adjustable-rate mortgage (ARM) into a fixed-interest loan.

HUD-approved counseling agencies offer foreclosure prevention assistance. Nonprofit counselors can help families review their expenditures and establish a long-term plan for financial stability. Some HUD-approved groups may also negotiate directly with lenders on a consumer’s behalf to have fees waived or mortgage loan terms modified, depending on the consumer’s qualifications. For a list of HUD-approved counseling agencies in Texas, consumers can access the Office of the Attorney General’s home page at www.oag.state.tx.us.

Texas Foreclosure Prevention Task Force

The Texas Foreclosure Prevention Task Force was formed by industry and community stakeholders concerned about the mounting foreclosure crisis in Texas.

Texas Foreclosure Prevention Task Force is comprised of representatives from over 50 organizations representing state, local, and federal government organizations, the financial industry and the non-profit sector working together toward a common goal – avert home mortgage foreclosures and the impact of foreclosure on Texas families and communities.

The Task Force is Focusing on the Following Activities:

• Raising awareness about the nationally endorsed bilingual Homeowner’s HOPE Hotline 1-888-995-HOPE, available toll free 24/7 to all Texas homeowners struggling with their mortgage payments.
• Establishing communication with callers loan servicer;
• Creating a budget and an “action plan” to address their foreclosure;
• Connecting with local services such as foreclosure intervention counseling and financial education.

Note: The Hotline is not designed to provide callers with grant or rescue funds, specific loan modification products or general information about how or where to qualify for a rate freeze.

• Supporting the outreach efforts of local foreclosure prevention initiatives, such as the coordinated efforts already occurring in many Texas markets including Dallas, Houston, San Antonio, El Paso, and Austin, while supporting the creation of new initiatives in areas with high mortgage default rates;
• Monitoring mortgage default patterns and trends in Texas through ongoing research to support timely intervention;
• Fundraising to increase the capacity of local counseling organizations that assist distressed homeowners with homeownership retention options;
• Identifying and sharing information about available mortgage assistance programs, including rescue and refinance products;
• Analyzing potential legislative recommendations that will support homeownership retention and strengthen Texas communities; and;
• Developing a tracking system to measure the effectiveness of these and other task force activities.

For further information about The Texas Foreclosure Prevention Task Force visit the following Web site at www.texasforeclosurehelp.org.

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