Foreclosure Prevention

If you are late in paying your mortgage or worried that you will be in the future, we can help. The New York Mortgage Coalition (NYMC) is a HUD-approved Housing Counseling Agency that provides foreclosure prevention counseling to distressed borrowers.  Homeowners who are facing default or have already defaulted on a mortgage may speak with a counselor or set up a counseling session to determine their options.  NYMC assistance is free.
 
NYMC foreclosure prevention counselors can assist distressed borrowers in the following ways:  

• Help you understand your situation and the options available to you 
• Help you negotiate with your lender/servicer 
• Help you develop a budget and a spending plan  

FAQ’s:  Foreclosure Prevention: 
 
Q: How much does foreclosure counseling cost?
A: Counseling through the New York Mortgage Coalition, Coalition members and other HUD-approved Housing Counseling Agencies does not cost anything.  Beware of organizations that require outrageous upfront fees.  Help is available at no cost.

 
Q: What should I do if I cannot pay my mortgage or I am in danger of not being able to pay my mortgage?
A: There are several steps you should take if you are finding it difficult to make your mortgage payments.  You should evaluate your income and expenses.  Determine if there is a way to bring in additional income.  Look for places where you can cut expenses.  You should contact your lender or servicer.  Finally, contact a housing counselor.  The New York Mortgage Coalition is a HUD-approved counseling agency.  
 
Q:  What documents will I need to provide to the counselor?
A: Homeowners will be expected to produce the following documents:

• Pay stubs or other proof of income 
• Information about your first mortgage 
• Information about any second mortgage or home equity line of credit on the house 
• Account balances and minimum monthly payments due on all of your credit cards 
• Account balances and monthly payments on all other debts 
• Your most recent income tax return. 
• Information about your savings and other assets 
• A Hardship Letter

 
Q: Who is my loan servicer?
A: Your loan servicer is the financial institution that collects your monthly mortgage payments and has responsibility for the management and accounting of your loan.  Your servicer may also be your lender, which means they own your loan, however, many loans are owned by groups of investors.
 
Q: What is a short sale?
A: If you can sell your house but the sale proceeds are less than the total amount you owe on your mortgage, your mortgage company may agree to a short sale and write off the portion of your mortgage that exceeds the net proceeds from the sale.
 
Q: What is predatory lending and what should I do if I think I’m a victim of predatory lending?
A:  Predatory Lending Practices include the following:

•  Excessive interest rates and/or higher points and fees 
• Failure to disclose the true terms of the loans 
• Pressure to sign documents without understanding the terms 
• Home Improvement Loans 
• Balloon Mortgage Asset-Based Lending – where the lender provides financing to a homeowner based on the homeowner’s equity and not on the borrower’s capacity to repay the loan 
• Multiple refinancing – repeated refinancing with no benefit to the consumer.  New costs, fees and prepayment penalties are rolled into the current loan leading to higher monthly payments.  

 
Q: What areas does the New York Mortgage Coalition cover?
A:  The geographic territory currently served by the NYMC comprises New York’s five boroughs, Long Island, and the New York State counties of Dutchess, Orange, Putnam, Rockland and Westchester. 
 
Q: Am I eligible for the new Making Home Affordable Program?
A: To determine eligibility go to http://makinghomeaffordable.gov/ and use their self-assessment tools to determine if you qualify for the Making Home Affordable Program.
 
 
 
Contact Us