Foreclosure

foreclosureNational Faith HomeBuyers (NFH) offers assistance to home owners in climbing out of the foreclosure trap—enabling homeowners to stay in their homes through loan modifications or Step Forward Michigan (SFM) applications.

NFH’s foreclosure services are FREE and have proven effective in helping homeowners retain their homes. National Faith’s Foreclosure Prevention Specialists will assess your financial situation, determine what options are available to you, and help you negotiate with your lender or Step Forward Michigan associates. Our specialist are familiar with the various programs and arrangements that are currently offered, and will assist you in determining what the best course of action is for you, your family and your financial future.

Our counselors will contact the lender on your behalf to discuss your situation, and in most cases will assist you in negotiating new payment options. We will also help you establish a new monthly budget so that you can better understand your cost of living.

Step Forward Michigan currently has 2 programs that are working to help protect homeowners.

  • Unemployment Program – will pay up to 50% of your mortgage payment for 12 months allowing you time to secure a new position and help ease your way out of a financial struggle caused by unemployment.
  • Loan Rescue Program – will pay up to $30,000 to bring a delinquent loan and/or property taxes current.

Our counselors will assist you with online SFM application or contact your lender on your behalf to discuss your situation. We will also help you establish a new monthly budget so that you can better understand your cost of living.

NFH maintains information on services, resources, and programs available that may provide you with additional financial, legal, medical or other assistance that you may require. NFH is HUD, MSHDA and Freddie Mac certified.

There are alternatives to foreclosure.

Your lender may be willing to work out with you in order to help save your home, or at least prevent foreclosure from ruining your credit.

Foreclosure Alternatives Include

Click on the tabs below to expand read more on each topic.

Repayment Plan

When a homeowner suffers a temporary financial hardship and the lender agrees to spread out the delinquent amount over a specified period of time resulting in the homeowner paying both their regular monthly payment plus this repayment amount each month until caught up.Your lender may give you a fixed amount of time to repay the amount that you are behind, plus any applicable service and/or late fees, by adding a portion to your regular monthly payment. This option is good if you have only missed a few payments.

Forbearance

When the lender agrees to reduce or suspend a portion or all of a homeowner’s monthly mortgage payment for a defined period of time. Typically somewhere between 6-12 months. IMPORTANT NOTE: In almost all of these agreements the lender is expecting all of the back payments the homeowner did NOT pay during this term to be paid before they can go forward with their original mortgage payment.

Loan Modification

When the lender and homeowner enter into a new permanent agreement which changes the parameters of their original loan product in an effort to make the mortgage more sustainable long term. Typically this is done by lowering or changing (ARM to fixed) their interest rate and/or extending out the term (length) of their loan.

Sell Your Home—In a “short sale”

Your lender will agree to let you sell your home, and will forgive any shortage between the sale price and the mortgage balance. It is possible that there could be additional tax liabilities on the amount of debt forgiven.

Deed in Lieu of Foreclosure

This alternative allows you to transfer the title to your lender in exchange for cancellation of the remainder of your debt. In using this option you will lose any equity in the home, and it’s possible that you will have to pay taxes on the debt forgiven. A sale, or deed in lieu of foreclosure, may be a better alternative than a having a foreclosure negatively affecting your credit.