How to Save Your Home from Foreclosure


This information was provided by Sheriff Joseph F McGinn and the Delaware County Sheriff's Office and is probably the most concise and complete explanation of the process, the options, and the contacts for anyone who may find themselves having a problem with affording their home payments that I have seen.  I would like to thank the Sheriff's Office for permission to reprint the information here:

 

Delaware County Sheriff's Office

How to Save Your Home from Foreclosure

Joseph F. McGinn
Sheriff of Delaware County

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WHAT CAN BE DONE TO PREVENT A SHERIFF'S SALE OF A HOME?

Do not ignore the letters from your lender's loss mitigation department.
 - Explain your situation
 - Be prepared to provide financial information

Loss Mitigation is a program where homeowners and lenders work together to resolve a delinquent loan.

Loss Mitigation can involve a short-term or long-term plan for bringing the loan current.

It can also provide a way for the homeowner to make a graceful exit from an unaffordable mortgage.

 

THE QUESTION THAT MUST BE ANSWERED IS:

DO YOU WANT TO STAY IN THE HOME OR LEAVE THE HOME?

= IF THE OPTION IS TO LEAVE THE HOME, THE HOMEOWNER COULD:

SELL AND PAYOFF

Deed-in-Lieu of Foreclosure - Homeowner voluntarily deeds property to lender.

SHORT SALE

When the home is sold at current fair market value and results in proceeds of less than total debt. (Viewed as a last resort)

= IF THE OPTION IS TO STAY IN THE HOME, ANOTHER QUESTION MUST BE ADDRESSED.  IS IT A SHORT-TERM FINANCIAL HARDSHIP OR A LONG-TERM FINANCIAL HARDSHIP?

IF IT IS A SHORT-TERM FINANCIAL HARDSHIP, THE OWNER COULD:

DO A REPAYMENT PLAN

This is a formal, written agreement that temporarily increases the monthly payment until the loan is brought current.  This usually requires cash down payment.

The benefits of this are:
 - The homeowner is able to remain in the home
 - The homeowner can "makeup" missed payments over time.

MORTGAGE FOREBEARANCE

This is a formal, written agreement often in the form of a consent agreement where the monthly payments are reduced or suspended for a specific period of time.  At the end of the agreed period, the homeowner resumes making regular monthly payments and tenders additional funds to make up for the past due amount.

HOME-SAVER ADVANCE

For Fannie Mae insured loans only - this program allows the homeowner to reinstate the mortgage.  The homeowner signs a note at 5% interest payable over 15 years with no payment for the first 6 months.

(HEMAP) HOMEOWNER'S EMERGENCY MORTGAGE ASSISTANCE PROGRAM

In this program, which is offered by the Pennsylvania Housing Finance Agency (PHFA), the Homeowner must prove prove that a hardship  existed which caused the default in the mortgage and the Homeowner must have a reasonable prospect of curing the default within 2 years. (HEMAP - 800-342-2397)

IF THE HOMEOWNER HAS A LONG-TERM FINANCIAL HARDSHIP THE HOMEOWNER COULD:

DO A LOAN MEDIATION - HOMEOWNER'S EQUITY RECOVERY OPPORTUNITY LOAN PROGRAM (HERO)

With this program, which is a PHFA Program, PHFA purchases the mortgage from the lender and then sets the homeowner up on an affordable repayment agreement.  This provides for up to 100% financing.

REVERSE MORTGAGE

This is only available to Homeowners who are 62 years of age or olde.  It provides the homeowner with up to 60% of the value of the house.

MORTGAGE MODIFICATION

One or more of the terms of the mortgage may be changed to bring the loan current.  Modification might involve extending the term or temporarily reducing the interest rate.  Fees and other costs may be added to the principal balance that is owed.

 

For any questions or additional information, please be sure to contact:

Delaware County Sheriff's Office
201 West Front St
Media PA  19063
Phone: 610-891-4296
Sheriff's Website



 

 

 


Letter from the Sheriff of Delaware County


 

 

Dear Homeowners,

Delaware County Council, the Sheriff's Office, and the Court of Common Pleas are committed to helping homeowners avoid foreclosure on the home where they live.

The purpose of this brochure is to provide information about programs that are available to the homeowner.  Listed are the names of some counseling agencies, that in many cases, provide counseling services at no cost to the homeowner.

Some concerns of the homeowner are that their lender's Loss Mitigation Department is difficult to reach.  I have listed the contact information of the Delaware County Sheriff's Office, Real Estate Division.  Our Office will act as the conduit between homeowners and their lenders to insure that the process is moving forward.  If you have any comments, please pass them on to our office.

Sheriff Joe McGinn

 

Real Estate Administrator
Grace Speck
610-891-4305

 

 


COMPREHENSIVE HOUSING COUNSELING AGENCIES

Advocate for Financial Independence
202 East Hinkley Avenue
Ridley Park, PA  19078
215-389-2810

American Red Cross of Chester
1729 Edgemont Avenue
Chester, PA  19013
610-874-1484

CCCS of Delaware Valley
280 North Providence Road
Media, PA  19063
215-563-5665

Chester Community Improvement Project
412 Avenue of the States
PO Box 541
Chester, PA  19016
610-876-8663

Media Fellowship House
302 South Jackson Street
Media, PA  19063
610-566-0434

American Financial Counseling Services
175 Stafford Avenue, Suite One
Wayne, PA  19087
267-228-7933
800-480-3039

Pennsylvania Housing Finance Agency (PHFA)
PO Box 8029
Harrisburg, PA  17105-8029
800-342-2397 Homeowners' Emergency Mortgage Assistance Program