MORTGAGE RESCUE:

HomeOwnership Center Assistance

A Program of St. Mary Development Corporation

St. Mary Development Corporation

Non-profit organization

Community development and neighborhood revitalization

for over 5 years

Chartered Member of NeighborWorks® America

HUD-approved housing counseling agency

The HomeOwnership Center’s Mission

To empower residents of Greater Dayton to achieve

and sustain homeownership and financial success.

Services

Complete First-Time Homebuyer Program

Reverse Mortgage Counseling

Foreclosure Prevention Program

Some services offered free of charge providing client

qualification.

First-Time Homebuyer Program

One-on-one coaching appointments

Step by step Action Plan for mortgage readiness

Homebuyer Class online and in person

Home Maintenance Class

Down Payment Assistance

Connection to a mortgage product that is the

right fit for the prospective homeowner

$199 fee

Reverse Mortgage Counseling

The only HUD certified counseling program

in the greater Dayton area

Helps seniors review all of their

housing options

Assists seniors to remain in their

homes

$125 Fee

One on one appointment with a Homeownership Advisor

Review of hardship, affordability & options

Foreclosure Prevention

28% Front End a

Assist & support homeowner to communicate

with mortgage lender

Assist in completion of request for mortgage assistance

No fee to homeowner

Mortgage Rescue Options

Save the Dream

Save the Dream Ohio/Restoring Stability/Hardest Hit Funds

Program of Ohio Housing Finance Agency

For homeowners that received this assistance, the OHFA lien will be released 5 years from date of assistance or 12/31/2017 whichever comes first

No longer available

Refinance/HARP

Forbearance Agreement

Special/Unemployment

Forbearance

Partial Claim

Loan Modification/HAMP

Sale of the Property

Pre-Foreclosure “Short” Sale

Deed-In-Lieu of Foreclosure

Working with the Lender

Most lenders have the ability and motivation to work with borrowers who are

having difficulties. Options include:

Refinance

You should always consider refinance.

Homeowner must have 12 months of on time

payments

HARP – For Fannie Mae & Freddie Mac

loans sold to investor prior to 3/31/2009

FHA Streamline

Traditional Refinance

Barriers to Refinance

On time payments

Private investors

Servicers versus Lenders

Loan to Value

Credit worthiness

Debt to Income Ratio

Forbearance Agreement

Repayment plan – Must repay arrears in 6-12

months

FHA is looking for disposable income

that exceeds $300/month requiring a

thorough cash flow analysis

Not affordable for most homeowners

Generally this is the only option when

past due 90 days or less

Special Forbearance

Also called Unemployment Forbearance

•Option for FHA, Fannie, Freddie, VA, USDA

•Not generally an option with a private investor

•Homeowner does not make payments for 6-12 months during the hardship

•At the end of the forbearance period full arrearage comes due

•If income is sufficient homeowner can then apply for loan modification

Only a FHA option

Arrearage is captured in a subordinate loan from HUD, non interest

bearing

Partial Claim comes due & payable in full when the first mortgage

matures

May be combined with a loan modification

Original mortgage/note does not change

Partial Claim

Loan Modification

An agreement that modifies the original mortgage/note

Market rate interest, reset term 30 years

Unpaid interest is added to the principal balance including any fees

Can defer principal – to be paid when loan matures (generally non interest bearing)

Payment may increase or decrease

HAMP

 Home Affordable Modification Program

A special modification process

Mortgage payment MUST exceed 31% of the gross monthly income prior

to modification

Option for FHA, VA, Fannie, Freddie, USDA

Loan must have originated prior to 1/1/2009

Home must be the primary residence

Tier 2 HAMP is for return default of a HAMP or default of rental/investment

property

Program set to end 12/31/2015

Liquidation Options

 

Market Sale – Homeowner keeps proceeds that exceed principal balance and fees owed

Short Sale – Lender/Investor must agree to accept less than balance owed

Deed in Lieu – Lender/Investor agrees to accept deed to the home

Short Sale & Deed in Lieu can have tax implications for forgiveness of debt

FHA Waterfall

 Repayment plan/Special Forbearance only when 30-90 days past due

Partial Claim

Loan Modification or combined with Partial Claim

HAMP

Short Sale/Deed in Lieu

Homeowner will be reviewed for housing ratio and cash flow

Imminent Default

 Homeowner is either current or less than 30 days past due on the

mortgage and is experiencing a significant reduction in income or some other hardship that will

prevent them from making their next mortgage payment

Difficult to prove and receive assistance

Trends

  More loan modifications being

approved & lenders responding more

quickly

Mortgage payment less than 31% of

the gross monthly income is not

reduced

More principal balance deferments

Shared Appreciation Modification

from Ocwen only

Some HAMPs with rental homes

Let’s work together!

The HomeOwnership Center can:

Complete a cash flow analysis

Help homeowner identify ways to increase income or

decrease spending as needed

Identify realistic mortgage rescue options

Assist homeowner in completing workout packet and

ensure documents are accurate

Facilitate communication with the servicer

Review offer/decline with the homeowner

Bankruptcy

Look at most appropriate timing for mortgage assistance & bankruptcy

During the bankruptcy process mortgages can get farther & farther behind

If bankruptcy dissolves all consumer debt, mortgage may then appear affordable

Make a Referral

Have the homeowner call (937) 853-1600

Have the homeowner identify their

relationship with you

HomeOwnership Center of Greater

Dayton or attorney must generate a

Third Party Authorization

Call Jackie If you have questions!

Service Area

We serve the following Ohio counties:

Clinton, Darke, Fayette, Greene, Mercer, Miami, Montgomery, Paulding, Preble, Shelby, Van Wert

Contact Information

Jackie Easter, Senior Homeownership Advisor

HomeOwnership Center of Greater Dayton

205 East First Street, Dayton, Ohio 45402

Phone: 937-853-1607 Fax: 937-853-1601

Email: jeaster@hocgd.org

Web: www.homeownershipdayton.org