Mortgage Late Don't Wait_

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					                                                                                                                                                    Mortgage Late?
from Maryland HOPE...
Here’s your Consumer Information Kit
                                       Don’t Wait!
                                       Mortgage Late?

                                                        Hope Hotline 1-877-462-7555
                                                                                      Crownsville, MD 21032
                                                                                      100 Community Place
                                                                                                                                                       Don’t Wait!
                                                                                                                                                    Act Now. Before It’s Too Late.

                                                                                                              CRownSville MD
                                                                                                               PeRMiT no. 35

                                                                                                                u.S. PoSTage
                                                                                                                 PRSRT STD
                                                                                                                                                     Dear Homeowner:

                                                                                                                                                          ou have taken an important step toward preserving homeowner-
                                                                                                                                                          ship. The enclosed information includes foreclosure prevention
                                                                                                                                                          tips and steps to take before meeting with a housing advisor or
                                                                                                                                                     contacting your lender.
                                                                                                                                Martin O’Malley
                                                                                                                                  Governor           Not everyone will be able to avoid foreclosure in these difficult times.
                                                                                                                                                     However, the faster one acts, the more options will be available. We are
                                                                                                                               Anthony G. Brown
                                                                                                                                 Lt. Governor        here to help you understand your options and find the best solution.

                                                                                                                               Raymond A. Skinner
                                                                                                                                                     Homeowners Preserving Equity (HOPE) is a program of the Maryland
                                                                                                                                   Secretary         Department of Housing and Community Development, in partnership
                                                                                                                                                     with the Department of Labor, Licensing, and Regulation, community
                                                                                                                               Clarence J. Snuggs    organizations, and lenders.
                                                                                                                                Deputy Secretary
                                                                                                                                                     Call us at the Maryland HOPE Hotline, 1-877-462-7555,
                                                                                                                                                     if you have any questions along the way.

                                                                                                                                                     Raymond A. Skinner
                                                                                                                                                     Maryland Department of
                                                                                                                                                     Housing and Community Development
                                                                                               Take Action NOW!
                                                                                               1. Contact your lender:                      4. Avoid foreclosure “rescue”
                                                                                               Contact your lender as soon as you
                                                                                               realize you have a financial challenge.      Free and objective assistance from
                                                                                               Open and respond to all mail from            a nonprofit housing counselor and
                                                                                               your lender or their agents. Lenders         your lender is available!
                                                                                               do not want to take your home! But           Some companies will promise you
                                                                                               delays will reduce your options.
                                                                                                                                            mortgage help for a fee. Some ad-
                                                                                                                                            vertise their services on signs on
                                                                                               2. Talk with a nonprofit                     telephone poles and in median strips.
                                                                                                  housing counselor:                        Some may be legitimate, but others
                                                                                                                                            have taken costly advantage of Mary-
                                                                                               Free foreclosure prevention help is          land consumers.
                                                                                               available from Maryland’s network of
                                                                                               nonprofit housing counselors listed          If you feel you have been the victim of
                                                                                               in this kit. Help is also available, 24/7,   a scam, you can report this to Mary-
                                                                                               via a national hotline at 1-888-995-         land’s Department of Labor, Licensing
                                                                                               HOPE, or                  & Regulation,,
                                                                                               Housing counselors can help you un-
                                                                                               derstand your mortgage options and           Don’t sign any legal documents with-
                                                                                               negotiate with your lender. Get ready        out getting objective advice from a
                                                                                               with the enclosed information!               qualified attorney. More information
           Do the following before meeting with                                                                                             about legal assistance and predatory
 Step 1:   a nonprofit housing counselor or legal advisors:
                                                                                               3. Try to refinance to a more
                                                                                                  affordable mortgage:
                                                                                                                                            real estate practices is available at     Step 2:
Prepare    1. Complete a Consumer Information form (enclosed).                                 The Maryland Department of Hous-
                                                                                               ing and Community Development                5. Prioritize your spending and
           2. Make a copy of your most recent mortgage statement or payment coupon.            (DHCD) has safe and affordable fi-
                                                                                               nancial options. See one of our HOPE
                                                                                                                                               SAVE money:                            Action
           3. Make a copy of all mortgage documents given to you before and at the             nonprofit housing counseling part-           Review your finances and cut spend-
                                                                                               ners in order to review your eligibility:    ing where you can. Look especially at
              closing for your current loan.
                                                                                               DHCD’s Lifeline Refinance Program            variable expenses like entertainment,
           4. Gather all mail you may have received from your lender about mortgage            is aimed at homeowners who are not           clothing, and memberships.
              lateness, including any letters regarding potential foreclosure actions.         behind on their payments but who are         Do you have assets you can sell? Can
                                                                                               facing an interest rate increase.
                                                                                                                                            anyone in your household work more
           5. Write a hardship letter (format enclosed).                                                                                    hours for additional income? Efforts
                                                                                               DHCD’s Refinance Program is for
             What is a hardship letter? A hardship letter is required by most lenders          homeowners that may have missed a            such as these demonstrate to your
             before they will consider offering relief to borrowers. The letter can be hand    few payments but who can afford to           lender that you are willing to make
             written. The letter must include this information:                                sustain a reasonable mortgage pay-           sacrifices to keep your home.
                  •   “I would to like stay in my house.”
                                                                                               DHCD’s Bridge To Hope Program is             6. If foreclosure is unavoidable:
                  •   “I fell behind on my mortgage payments as of _______ date.”              emergency 0% loan assistance to help
                  •   “The reason I fell behind is _______.”                                   homeowners catch up on payments              Other supportive services in your area,
                                                                                               while they work out a solution with          such as emergency housing, can be
                  •   “The situation has changed and I will be able to make my mortgage
                                                                                               their counselor and lender to stay in        found by contacting United Way’s 211/
                       payment because _______.”                                                                                            First Call for Help, 1-800-492-0618.
                                                                                               their home.
           6. Complete a Household Monthly Budget form (enclosed).                             Also, “FHA Secure” is a HUD refinanc-        If you need to locate affordable rental
                                                                                               ing program which you can learn              housing, see DHCD’s housing locator
           7. Make a copy of pay stubs for all household earners for the two most recent pay   about by calling 1-800-CALL-FHA              service at
              periods, and also copy two months of bank statements.                            (1-800-225-5342).                            or call 1-877-428-8844.
Tips to Avoid Being Scammed                                                            Consumer Information

I                                                                                      P
 f you are behind on your mortgage payments and are facing foreclosure, consider the       lease complete this form before meeting with your housing counselor.
                                                                                           Be sure to take it with you to your first appointment. If you have any questions, please call the
 following DOs and DON’Ts:                                                                 HOPE Hotline at 1-877-462-7555 or go on-line to
                                                                                       Borrower First Name:                Last Name:                                                    Date:

    •   Contact your lender and try to refinance the loan or work out a                Co-Borrower Name:
        payment plan.                                                                  Borrower Annual Household Income:                            Co-Borrower Annual Household Income:

    •   Contact an attorney.
    •   Contact a reputable counseling agency.
    •   Contact the Maryland HOPE Hotline at 1-877-462-7555 for                        Household type: (Check all that apply)                       Street address of property (do not use P.O. box):

        referrals to free nonprofit housing counseling and legal services.                   Single adult
                                                                                              Two or more unmarried adults
    •   Get everything in writing.                                                                                                                  City:
                                                                                              Married with children
                                                                                              Married without children
DON’T:                                                                                        Female-headed single-parent household
                                                                                                                                                    County:                              State:         Zip Code:

                                                                                              Male-headed single-parent household
    •   Ignore warning letters from your bank or lender. The problem will
                                                                                             Senior                                                 Phone numbers work/home/cell:
        not go away, and will only get worse if you ignore it.
    •   Sign a contract under duress.
                                                                                       Who owns the residence in question:                          Email address:
    •   Sign any documents without consulting with an attorney or
        counseling agency.
    •   Sign any agreement with blank lines or spaces.
                                                                                       I make my mortgage payment to:                               My total monthly mortgage payment is:
    •   Sign over your deed to a third-party or agree to any deal that
        supposedly allows you to rent the property and buy it back later.
    •   Sign any documents without reading them first.
                                                                                       I am or may soon be behind on my mortgage payment because:   My payments are now:
    •   Enter into oral agreements.                                                           My income was reduced                                       Current
    •   Make your mortgage payments to someone other than the lender.                                                                                     30–60 days late
                                                                                              Loss of job
                                                                                                                                                          61–90 days late
    •   Make a deal with someone who solicits you uninvited by mail,                          Loss of income for another reason                           91–120 days late
        telephone, flyer or in person.                                                        Medical issues or expenses                                  More than 120 days late
    •   Fall for promises that sound too good to be true. That’s a tell-tale                  Family issues                                               Unknown or unsure
        sign of a scam.                                                                       Increase in expenses                                  Have you contacted your lender?
    •   Pay anyone up front who promises to negotiate with your lender.                       Divorce or separation                                        Yes
                                                                                              Death of a family member                                     No

                                                                                              Failed business venture                               If “Yes,” what was their response?
                                                                                              Increase in mortgage payment
                                                                                              Other (please explain):

                  • 1-877-462-7555
Household Monthly Budget                                                                                        Hardship Letter Format

      lease complete this form with your budget information so that you can review your financial situa-        To (Name of Lender):                                                                     Date:
      tion with your housing counselor. Be sure to take it with you to your first appointment. If you have
      any questions, please call the HOPE Hotline at 1-877-462-7555.

A. Household Expenses:                                   B. Your Monthly Income:                                From Borrower(s):

Fixed Monthly Expenses                Payment             Before Taxes                   After Taxes
Mortgage                                                                                                        Loan #
2nd Mortgage
Gas & Electric                                                                                                   I would like to remain in my house, but I fell behind on my mortgage payments as of (date):
Heating Oil
Water & Sewer
                                                         Spouse or Partner’s Income:
Telephone                                                 Before Taxes                   After Taxes
Car Payment 1                                                                                                    The reason I fell behind is:
Car Payment 2
Auto Insurance
Life Insurance
Medical Insurance
                                                         Other Household Income:
Alimony/Child Support                                     Before Taxes                   After Taxes
Alarm System
Property Taxes/Insurance
Other / Minimum Credit Card Payment
Sub-Total, FIXED Expenses
                                                         C. Credit Card and Other Debts:                         I will be able to overcome these difficulties and make my mortgage payment because:
Variable Monthly Expenses             Payment             Creditor Name                  Min. Payment Balance             - I have a new job

Groceries                                                                                                                 - I have a second job
                                                                                                                           - I have reduced my household expenses
Eating Out
                                                                                                                           - I have additional income form my son, daughter, etc.
                                                                                                                 and/or   - I can make the payments at my original interest rate. If you
Bus/Taxi/Parking                                                                                                            freeze my interest rate, I can make my payments.
Car Repair
Toiletries/Hair Care
Day Care                                                 D. Surplus/Deficit:
Cable TV
                                                          Total net monthly household income
                                                          Subtract total monthly expenses
                                                          = Monthly surplus or deficit
Cell Phone                                                                                                       Borrower Signature                                                        Co-Borrower
Sub-Total ,VARIABLE Expenses