Stop Foreclosure Answer

In mid August there was an interesting article in U.S. News and World Report.  It reported on a study done in Philadelphia on 250 families facing foreclosure.  The study suggested that foreclosure was having a severe impact on the health of the people facing it.

Findings of the Study

 250 families were studied.  The major findings were:

• Over 50% were depressed.  37% had major depression.
• 60% skipped meals because they couldn’t afford them.
• 48% could not afford to buy the drugs prescribed for them.
• 9% listed a medical condition as the cause of the foreclosure.
• Over 25% had large outstanding medical bills.
• 68% of those who smoked more when they were notified that a foreclosure had started.

The Devastating Part

Here we have people with major health issues.  Do you believe that they were getting the medical treatment they needed for their conditions?  If they weren’t what is the ongoing impact on them and their families?

What do you think the impact is for those who are depressed on their relationships?  Might a higher number of divorces occur?  What is the impact on children when a parent is depressed?  Do they have any idea of the reason the parent may be acting as they are?

The Health Care Crisis in This Country  

Right now there are news reports on a daily basis of how many people do not have health care in the United States.  We also hear about the people who cannot get the medical care they need because of the cost. 

It is expected that there are going to be 9 million foreclosures in the United States by 2012.  How many of these people do you think will not have health care coverage?  If something is not done to get these people some type of affordable health care, isn’t the problem just going to intensify?

Help Is Available

While it may be quite awhile before the health care crisis in this country is resolved, there are other things that people facing foreclosure can do to get help with medical problems they have. 

First – they should get a lawyer or expert in loan modifications to help them and represent them in dealings with their mortgage company.  These people know what to do.  They know the steps that can be taken to have their loan modified in the best way for their clients and their circumstances.  Just turning this over to a lawyer or one of these experts will go far in alleviating stress and depression they are experiencing.

Second – They also should look for medical resources available in their community that can direct them to where they can get treatment for themselves and their family members at a reduced cost.  If they belong to a church, a good starting place is their church.  Most have people on staff who knows what is available in the community.  Another good source is the local county government.  County governments frequently have departments that specialize in directing people to clinics and doctors who offer medical care for free or at a minimal cost.  Last, the local county medical society can advise people where they can get medical care for free or at a minimal cost.

If you are facing foreclosure and you or a family member has a medical condition and don’t have medical insurance, I suggest that you check out what I have suggested here.  By the way, you also will want to know as much as you can about the steps you can take to stop the foreclosure on your home.  One place you can get this information is in my EBook.  I invite you to check it out.  You can get more information on it by clicking Stop Foreclosure.

Much Success,

Mark Elkins

You would think that when a person facing foreclosure has their loan modified it should be the right one for their situation.  After all they have to submit detailed information on their finances including their income, assets and debt.  The mortgage company carefully reviews all of this and modifies their loan so that the person is able to make the new monthly payment and save their home from foreclosure.  Well let me tell you

It Always Does Not Work That Way 

 I recently read about a man in Arizona and had to let you know what happened to him.

This man asked his mortgage company for help in October of 2008.  At the time he had bee making the monthly payments on his mortgage on time.  However, he knew that would not continue.

His annual income had dropped by $30,000.  He worked for Boeing and was earning $50,000 a year.  That job was safe.  However, he earned about $30,000 as a loan officer.  That income disappeared.  His girlfriend who lived with him was out of work.

His mortgage company told him that since he was not behind on his payments, he did not qualify for help. Several months later he did fall behind on his payment of $2,000 each month.  When the Making Home Affordable Modification Program was announced in March of this year, he checked and saw that he was eligible for help.  He sent information on his income, assets and debt to his mortgage company.  They told him that they would get back to him in 30 to 60 days.  By then his savings were exhausted.

Several weeks later he got a foreclosure notice from his mortgage company in the mail.  He called them and explained that he applied for a loan modification.  They put the foreclosure on hold for a month while his application for the modification was considered.

Sometime later his mortgage company sent him a package via Federal Express.  In it was a contract lowering his monthly payment by 50% for six months.  They asked him to sign it and send it back to them. The letter said that this was to demonstrate to the mortgage company that he would have no trouble making the payment on time for each of the six months. He was happy when he received that.  He felt that he would save his home.  He signed the contract and sent it back with his first check.

A week later he received another Federal Express package.  This contained a letter from his mortgage company congratulating him.

His Loan Modification Was Complete.

His New Payment Would Be $150 More a Month.

 Yes, that was $150 more a month than his original payment – the one that he could not afford to make in the first place.

He called the mortgage company and was told that he could reapply.  The review might take 90 days.  There was also no guarantee that foreclosure might not take place before then.  At that point he asked to speak with a supervisor of the department.  He was put on hold and then disconnected.

This man did not know whether he was going to continue to try to get his loan modified.  Would you say that he is frustrated?  I know that I would.  If I were in his position, I would be ranting and raving.

Let’s Take a Closer Look At This

 First -the modification proposed by the mortgage company was nowhere near what the man expected.  Especially after he got the Federal Express package the week before with the contract reducing his monthly payment by 50%.

Who controlled the entire process? Be he or his mortgage company?  I would have to say that it was his mortgage company.  He did submit the application on his own.  After that there was very little contact between him and the mortgage company.  He didn’t call them on a periodic basis.  He had no idea of when he was going to hear from them.  He was surprised when he got the first Federal Express package.  He had to be more surprised when he got the second.

So his mortgage company controlled the process.  He had no input into how the loan would be modified.  He had no idea of what they were going to propose.

Second – This man handled everything on his own.  He had no one representing him.  He did not get the help of a lawyer or an expert in loan modifications.  If he did get someone to represent him, they would have told him what to expect.  They probably would have been in touch with his mortgage company more frequently.  The loan may have been modified more favorably.  If It was not, they would have taken more decisive action when the  second Federal Express package was received.

If you are facing foreclosure, you should only represent yourself if you feel that you are really qualified to do so.  If you’re not, get either a lawyer or an expert in loan modifications to help you.  Don’t allow your mortgage company to dictate the terms of the loan modification they will give you.

You also want to get as much information as you can on the foreclosure process and the steps you can take to save your home.  One place you can get more detailed information is my EBook.  You can get more information on it by clicking Stop Foreclosure.

Much Success,

Mark Elkins

In my last post I gave you an overview of the Home Save Program of the Neighborhood Assistance Corporation (NACA).  This is one of the most structured programs I have seen to help people facing foreclosure save their homes.  Not only do they have a well developed counseling program to help determine how much of a monthly mortgage payment a person facing foreclosure can make, they also have a negotiator negotiate this with the person’s mortgage company.  To aid in the process they have binding agreements with most of the mortgage companies.

Even though this program is very good,  it can be quite awhile from the time a person attends one of their workshops and meets with one of their counselors till they are notified that their mortgage company has agreed to modify their loan and to accept the lower monthly payment negotiated by NACA.  It looks like NACA was looking for a way to shorten that time.  They apparently found it in their Save The Dream Tour.

Let Me Tell You About It

 Earlier this year NACA started a nationwide tour.  They named it their Save The Dream Tour.  They reserve a major convention center or arena in a city for 4 or 5 days.  As many as 500 of their staff or volunteers descend on that convention center or arena for those 4 or 5 days.  They set up tables where they meet and work with people facing foreclosure.  In advance people sign up to meet with a NACA counselor.

When NACA arrives in the city, the people facing foreclosure bring their financial information.  This includes a list of all of their assets and debts.  They also bring their pay statements, mortgage statement and information on their real estate taxes and home owner’s insurance premium.   The NACA counselor works out a budget with them on the spot.  This shows how much a monthly mortgage payment they can afford to make.  Representatives from most of the mortgage companies attend these events.  They are normally in a different room and have the power to review the budget created and accept the reduced payment or negotiate a different one for their company.  This is done on the spot.  Normally the person facing foreclosure goes home knowing what their new monthly payment is.  They just have to wait for written confirmation of it from their mortgage company.

What Normally Takes 60 Days or More Is Done In a Few Hours 

When you think about it, NACA is able to do in several hours at these events what has been taking a very long time elsewhere.  That is outstanding.  Are there problems?  Sure there are. 

First – many more people show up for one of these events than NACA can adequately handle.  They may be able to handle 5,000 in each city.  When people facing foreclosure learn from a relative or friend that NACA is in the city and what their counselors are able to do, they show up unannounced.  The NACA representatives will work with as many people as they can while they are in the city.  However, they can not get to everyone and some go away disappointed.

Second – There have been instances where people facing foreclosure have been told that their mortgage company has agreed to accept a lower monthly mortgage payment only to find out afterwards that their company did not.  It looks like this happened more frequently at the initial events held by NACA.  NACA representatives have been working to resolve these.

Over 180,000 People Facing Foreclosure Show Up Thus Far

Yes, you read that right.  NACA estimates that over 180,000 people facing foreclosure have shown up for help at their events so far.  After pilot events in Columbia, South Carolina and Stamford, Connecticut, NACA took its Save The Dream Tour to Cleveland, Chicago, St. Louis and Atlanta.  While NACA was in these cities, their representatives helped as many of these people as they could.

This fall NACA’s Save The Dream Tour will be in the following cities:

• Los Angeles, CA – 9/24 to 9/28
• Phoenix, AZ – 10/2 to 10/5
• Las Vegas, NV – 10/9 to 10/12
• Oakland, CA – 10/16 –10/20

They are also looking at visiting the following cities but no dates have been set yet:

• Tucson, AZ
• Jackson, MS
• Denver, CO
• Southern Florida

If you are facing foreclosure and live near one of these cities where NACA’s Save The Dream Tour will be, you might want to check it out.  Go to their website, https://www.naca.com/index_main.jsp#, and click where it says  “Click here for other participating cities and more information.”  I also invite you to check out my EBook.  This has much information about the foreclosure process and the steps you can take  to save your home form foreclosure.  You can get more information on it by clicking Stop Foreclosure.

Much Success,

Mark Elkins

In my last post I told you about Bruce Marks.  Today let me tell you about the organization he heads up.  Bruce is the Chief Executive Officer of the Neighborhood Assistance Corporation of America (NACA).  NACA is a non-profit community advocacy and homeownership membership organization.  One of its objectives is to help people facing foreclosure save their homes.  It currently has offices in 30 cities in the United States.  The Department of Housing and Urban Development has approved it as a home counseling agency.

The Home Save Program 

NACA calls its program to help people save their homes from foreclosure its Home Save Program.  This program is structured more formally than most other programs helping these people.  There are 8 stages in the program:

• Stage 1 – Everyone is required to attend a workshop where they learn about the program.  If there is not a workshop in their area, people can go to the next stage.
• Stage 2 – They then are required to submit information on themselves, their property and their finances over the Internet.  NACA verifies the information submitted.
• Stage 3 – They then schedule a meeting with a NACA mortgage counselor.  This meeting can either be face to face or over the phone.
• Stage 4 – They need to submit certain information by fax or email or bring it to their meeting with the counselor.  This includes their pay stubs for the last month, their most recent monthly mortgage statement and a signed authorization form permitting NACA to get copies of their tax returns.  (For self employed people, NACA asks for income verification for the last 6 months.)  They also ask the people to submit copies of their most recent property tax bill and homeowners’ insurance bill if they have them.
• Stage 5 – The mortgage counselor works with each person to prepare a budget showing how much a monthly mortgage payment they can make.  If any necessary documents are missing, they work with the person to get them.  They submit this to the person’s mortgage company.
• Stage 6 – NACA’s negotiators work with each person’s mortgage company to accept the reduced monthly mortgage payment that the mortgage counselor arrived at.  If more documents or information are requested by the mortgage company, NACA asks the person to submit it.  NACA has legally binding agreements with the mortgage companies of 90% of the people they represent.  In some cases a mortgage company has to get an investor to accept the solution that NACA recommends.  If they can’t, NACA discusses it directly with the investor.  After a solution is accepted, the person is notified of it by their mortgage company.  If there have been no changes in the amount of the monthly mortgage payment NACA recommended, the person signs the documents and returns them to the mortgage company.  If the monthly mortgage payment is higher than what the person expected, they are asked to call NACA and discuss it with them.
• Stage 7 – If for some reason the mortgage company or investor does not accept the modification NACA suggested, then the person is asked to participate in NACA’s advocacy campaigns.  These companies and investors need to change.  The only way to get them to change is by demonstrating against them.
• Stage 8 – NACA asks anyone it helps save their home from foreclosure to work with their organization.  They ask that they volunteer at NACA’s offices, use their skills to assist other homeowners in similar situations and to take part in demonstrations. 

It probably took NACA some time to develop this program.  It is one of the most structured programs I have seen.  What I like about it is that they have binding agreements with mortgage companies.  This organization not only helps each person determine how much of a monthly payment they can afford, they go to bat with their mortgage company and get them to accept.  They not only sit down with each person and figure out how much a monthly mortgage payment they can afford, they have negotiators negotiate it with their mortgage company.

In my next post I want to tell you about NACA’s Save The Dream Tour.  It is Their Home Save Program on steroids.

If you want to find out more about foreclosures and the steps that can be taken to save a home from foreclosure, I invite you to check out my EBook. You can get more information by clicking Stop Foreclosure. 

Much Success,

Mark Elkins

Bruce Marks is the Chief Executive Officer of the Neighborhood Assistance Corporation of America (NACA). NACA is a non-profit community advocacy and home ownership organization. Its primary goal is to build strong healthy neighborhoods through affordable home ownership. It has a tremendous track record of taking on predatory and discriminatory mortgage companies. It has labeled itself as the most effective organization in helping people facing foreclosure to have their loans modified and to save them.
What Is Bruce Marks Role?

As the Chief Executive Officer he leads NACA’s efforts. He considers himself a “Bank Terrorist.” He could sit back and run his organization from his office but he doesn’t. He’s right in front terrorizing the mortgage company and leading his organization’s effort.
He is fed up that the mortgage companies are so slow in modifying the loans of people facing foreclosure. So he attacks the best way he feels that he can. He wants to get the attention of the chief executives at the mortgage company and he will do this any way that he can. He has led protests

• on streets in large cities.
• at congress in Washington, D.C.
• at the homes of Chief Executive Officers of mortgage companies on Sunday mornings when he knows that they and their families are home.
• at the schools that some of their children attend.

Extreme – yes, you can say that. However, if it gets the attention of the mortgage company executives and if it gets their companies to start modifying loans more quickly, then he feels it is worth it. He is not out to win a popularity poll. He wants to help those he feels are disadvantaged.
That’s What Attracted Me to Bruce

I have always felt that too many mortgage companies have taken advantage of people to whom they have given mortgages. They are too slow in helping them when they are facing foreclosure. There is no reason for this. So when Bruce Marks leads a protest, he calls the public’s attention to what these companies are doing. They have no alternative but to start to change. They don’t want the negative publicity he is creating for them
In my next post I will be commenting on how NACA helps people facing foreclosure. You won’t want to miss it.
In the meantime if you want more information on foreclosure and what you can do to save your home from foreclosure, you might want to check out my EBook. You can get more information by clicking Stop Foreclosure.

Much Success,
Mark Elkins