Who We Are● Non-Profit – no charge for services● HUD Approved● In existence since 1998● 2 Offices Providing a variety of services● Certified in Foreclosure Prevention● Certified in Credit Counseling● Certified in Homebuyer Education
Services We Provide to Assist You Our Goal is Preventing Foreclosure We will work with your Mortgage Company to obtain a solution. – Modification: Change some terms of your mortgage to make it more affordable – Short Sale: Sell your property for less than owed – Deed in Lieu: Deed property back to mortgage company
Types of Modifications● Government Modification: Home Affordable Modification Program – Requires documented hardship – Intent is to set payment at 31% of GROSS income through these methods: ● Interest Rate Reduction ● Extend Term of Loan ● (RARELY) Principal Reduction or deferment● Traditional Modification: similar methods but mortgage company can be more flexible
Hardest Hit Program– Government program that assists homeowners that are unemployed or underemployed.(very specific hardship)– The program has up to $42,000 per qualified homeowner.– Funds can be used to bring the first mortgage current and to help make payments for up to 12 months.
● Hardest Hit Eligibility Criteria● Unemployed or underemployed through no fault of your own● Home must be primary residence● Monthly housing debt more than 31% of gross income● Cannot own more than 1 other property
Documents Needed for Counseling Always provide Copies– Complete and sign all forms in intake package– Hardship letter– 2 months most recent bank statements (all pages)– 30 days most recent proof of income– Proof of all other income (Social Security, child support, retirement, etc.)– Profit and loss statement if self-employed– Homeowners insurance declaration page
Documents Needed for Counseling (Continued)– Homeowners Association statement(if applicable)– Copy of all monthly bills– Recent mortgage statement– Copy of photo ID and Social Security cards for all borrowers– $30 (joint) or $20 (single) for a credit report
Adam Thoresen AttorneySt. Johns County Legal Aid
What happens next?● Turn in your complete intake package and any supporting documents that you have today.● Schedule your phone counseling appointment with your counselor to review the information you have provided. Counselor will contact you the day of your appointment.● Have any additional documents that you are not turning in today available for your phone appointment.
• Following your phone counseling appointment, your counselor will send you an “action plan”. This is a follow up of your phone appointment and will provide you with a list of the documents your counselor still needs or the next actions you need to take.
Requested Documents:• All completed and signed intake package forms• Hardship letter• Two month’s bank statements for all accounts – Budget• 1 Month Proof of Income• Proof of other income (Social Security Award letter, Pension statement, retirement, divorce decree showing child support)• Profit and loss statement if self employed• 2 years of most recently filed tax returns• Homeowners insurance declaration page• Homeowners association statement (if applicable)• Copies of all monthly bills• Recent mortgage statement• Copy of photo ID and Social Security Card for all borrowers• $30 Cash or money order for Credit Report ($20 for individual)