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Foreclosure Prevention

Where Do I Go For Help With Credit Problems?

Family Credit Counseling Service - 4306 Charles St. Rockford, IL 61108 Phone: 800-994-3328-128 Fax: 800-492-3150 E-mail: Michael.mcauliffe@familycredit.org Website: www.familycredit.org

Rockford Area Affordable Housing Coalition - 205 N. Church St. Rockford, IL 61101-1003 Phone: 815-962-2011 Fax: 815-962-2650 E-mail: raahc@raahc.org Website: www.raahc.org

CCCS of Greater Chicago, a Division of MMI - 129 Phelps Ave. Ste 811 Rockford, IL 61108 Phone: 888-527-3328 Fax: 815-961-1820 E-mail: briancoyle@moneymanagement.org.

Neighbor Works America - 1325 G Street, Suite 800 Washington DC 20005 - 3100 Phone: 202-220-2300 Fax: 202-376-2600

Homeownership Preservation Foundation - Phone: 1-888-995-HOPE (4673) Website: www.995hope.org

Center for Responsible Lending - 302 West Main St. Durham, NC 27701 Phone: 919-313-8500 Fax: 919-313-8595 Website: www.responsiblelending.org

Credit Reporting Agencies

Equifax - 800-685-1111 www.Equifax.com

Experian - 888-397-3742 www.Experian.com

TransUnion - 800-916-8800 www.TransUnion.com Free yearly report: www.AnnualCreditReport.com 877-322-8228

Legal Assistance (Free or low cost)

Land of Lincoln Legal Assistance Foundation - 975 N. Main St. Rockford, IL 61103 Phone: 815-965-2902 or 800-892-2985

The Facts of the Matter

Over-leveraged homeowners, adjustable rate loans reset and fraudulent loan practices started a down-ward spiral of mortgage default and foreclosure. Much of the disturbing national calamity began on the coastal areas which saw double and triple increase in market prices. Rockford area's moderate increase in apprecaition and minimal house flipping, helped maintain a much lower foreclosure rate.

Preventing a Foreclosure

Its important to act quickly and prior to 90 days from last mortgage payment. Letters from lenders should not be ignored. Communicate and negotiate early and seriously to restructure your loan. Options:

Forebearance lets the borrower pay less than full amount or skip a few payments with a reasonable plan to become current on the loan. Reinstatement is right if a payment that covers all previous late payments can be made. Repayment Plan allows for additional payments to be made monthly until past due amount is paid. Loan Modification permanently changes original note terms to affordable payments.

Minimizing Credit Damage

Foreclosure is unlike bankruptcy. The home mortgage terms may allow the lender to collect all loss incurred in resale of the property from the borrower. Laws may prohibit the borrower from financing a replacement home 10 years.

When loan restructure is not possible, other options may be used to avoid long-term credit damage. Short Payoff - Lender agrees to write off the portion of the loan that exceeds the net proceeds of a sale. Assumption - Qualified buyers are permitted to take over mortgage debt and make the payments even if it has non-assumable terms. Deed-in-Lieu of Foreclosure - Cancellation of the loan upon voluntary property title transfer to the lender.

Connect with professionals who can help select the best options and negotiate the most favorable outcome.
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