Foreclosure Intervention/Prevention Program
As a result of the nationwide subprime foreclosure crisis, Congress approved and President Bush signed legislation authorizing money for a National Foreclosure Mitigation Counseling Program. The target clients are owner-occupants of single-family (one to four) properties that obtained subprime loans, are delinquent on their mortgages, and are at risk of default and foreclosure or homeowners at risk of becoming delinquent and entering default. Counseling can include a range of activities depending on the homeowners’ financial situation and the severity of the mortgage delinquency.
EPA CAN DO Foreclosure counseling programs offer these services to homeowners at risk of foreclosure:
Negotiation services: Foreclosure counselors will talk to your current lender to try to work out a repayment plan that you can afford. The counselor might ask your lender to lower the mortgage interest rate, forgive part of the loan, or give you more years to repay the loan.
Legal assistance: If your lender has broken the law and has violated your legal rights, your counselor will refer legal assistance for you.
Financial counseling: Foreclosure counselors will help you budget your money so you can make your mortgage payments on time, and also save for home repairs, utility bills, property taxes, and other home-related expenses. If you decide you do not want to keep your home, they can help you with you with the short sale, deed in lieu process or refer you to bankruptcy attorney.
Outreach: Foreclosure counseling programs do outreach to let low-income and elderly homeowners know where to go for help.
Consumer education: Counselors teach homeowners how to recognize and avoid predatory lenders and scam artists so they do not become victims and put their homes at risk.
Important:Â If you are facing foreclosure, your lender will publish your name and address in the local newspaper. This is part of the foreclosure process and is required by law. Scam artists and predatory lenders may contact you and try to take advantage of you. You should always call an approved counseling agency to check any loan offers you get