Upcoming Oakland workshop: with this text: Upcoming Predatory
Lending Prevention and Foreclosure Intervention Workshop on October 25th
Click here for more information.
Information and Help
Avoiding Foreclosure
Foreclosure Rescue Scams
Predatory Lending
Tenants Facing Displacement Due to Foreclosure
Housing Counseling Services
Emeryville's Predatory Lending Prevention and Foreclosure Prevention Strategy
Avoiding Foreclosure
If you are having difficulty making your mortgage payments or are facing the possibility of foreclosure, it is important to do something promptly or you may lose your home.
Here are some tips from the U.S. Department of Housing and Urban Development (HUD):
1. Don't ignore the problem.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Contact your lender as soon as you realize that you have a problem.
Lenders do not want your house. They have options to help borrowers through difficult financial times.
3. Open and respond to all mail from your lender.
The first notices you receive will offer good information about foreclosure prevention options that can help you weather financial problems. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.
4. Know your mortgage rights.
Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about the foreclosure laws and timeframes in your state (as every state is different) by contacting the State Government Housing Office.
5. Understand foreclosure prevention options.
Valuable information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov/foreclosure/index.cfm.
6. Contact a HUD-approved housing counselor.
The U.S. Department of Housing and Urban Development (HUD) funds free or very low cost housing counseling nationwide. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance. Find a HUD-approved housing counselor near you or call (800) 569-4287 or TTY (800) 877-8339.
Click here for a list of U.S. Department of Housing and Urban Development (HUD) approved agencies located near Emeryville.
7. Prioritize your spending.
After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses-cable TV, memberships, entertainment-that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.
8. Use your assets.
Do you have assets-a second car, jewelry, a whole life insurance policy-that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.
9. Avoid foreclosure prevention companies.
You don't need to pay fees for foreclosure prevention help-use that money to pay the mortgage instead. Many for-profit companies will contact you promising to negotiate with your lender. While these may be legitimate businesses, they will charge you a hefty fee (often two or three month's mortgage payment) for information and services your lender or a HUD approved housing counselor will provide free if you contact them.
10. Don't lose your house to foreclosure recovery scams!
If any firm claims they can stop your foreclosure immediately if you sign a document appointing them to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home! Never sign a legal document without reading and understanding all the terms and getting professional advice from an attorney, a trusted real estate professional, or a HUD approved housing counselor.
Click here to get your mortgage loan servicer contact phone number.
Additional resources on foreclosure prevention:
- Help for homeowners facing the loss of their home
- How to avoid foreclosure [PDF]
- Help with your mortgage
- Questions and answers on home foreclosure and debt cancellation
Foreclosure Rescue Scams
Some people may contact you to try to convince you to sell your home to them or that they can "rescue" you from foreclosure. Be wary of these offers as they may not have your best interest in mind. If you sold your property or paid someone to "rescue" you from a foreclosure, you might be a victim of a crime. If you believe this to be the case, contact the Alameda County District Attorney at 510-569-9281 or visit http://www.acgov.org/da/consumer_fraud.htm to request a Consumer Fraud Complaint Form.
Predatory Lending
Predatory lending is the practice of charging excessive fees, high interest rates, and other abusive techniques that mortgage lenders use to deceive and take advantage of borrowers. This loan process involves aggressively finding customers who need loans but who do not have access to the traditional loan process.
To avoid predatory loans, be wary of lenders who approach you and pre-approved loans in the mail. Before you sign a loan, be sure you know whether the interest rate will change, whether there is a balloon payment (a large payment due at the end of the loan term) or negative amortization (where the amount owned increases over time), and whether there is a refinancing or early payment penalty. Be sure to also talk with more than one lender and compare loan options.
If you believe you have been a victim of predatory lending practices, there are a number of Federal agencies that may be able to help. A list of these agencies is located here: www.hud.gov/offices/hsg/sfh/res/resrefer.cfm. For phone advice and counseling, contact Housing and Economic Rights Advocates at www.heraca.org or 510-271-8443. HERA also offers legal representation to low or moderate income households. You may also contact a HUD-approved housing counseling agency certified to provide predatory lending advice. These include ACORN Housing, the Unity Council. Housing Rights, Project Sentinel, NID-HCA, and Community Housing Corporation of North Richmond. See the list of Housing Counseling Services for contact information for these agencies.
Additional resources on foreclosure prevention:
- Avoiding predatory lending
- Don't be a victim of loan fraud
- Six steps for a good loan
- Predatory mortgage lending
Tenants Facing Displacement Due to Foreclosure
If you are a tenant facing displacement from your home because your landlord is going through foreclosure, beware of anyone who instructs you to vacate who does not have the authority to do so and/or is not following the legal process for doing so. For advice, contact a HUD-approved agency that provides tenant counseling, such as Housing Rights, ECHO, Consumer Credit Counselors of the East Bay, Project Sentinel, or NID-HCA. See the list of Housing Counseling Services for contact information for these agencies.
Housing Counseling Services
If you need advice on buying a home, default, foreclosure, or credit issues, housing counseling agencies can help you evaluate your loan documents, refer you to a lender, shop for interest rates, or order and review your credit report. This advice is free or at low cost.
HUD-approved housing counseling services near Emeryville:
- Acorn Housing (Oakland, CA), 510-436-6532, www.acornhousing.org, Languages spoken: English, Spanish, Vietnamese
- CCCS of the East Bay (Berkeley and Oakland, CA), 1-800-308-2227, www.cccsebay.org, Languages spoken: English and Spanish
- ECHO (Oakland, CA), 510-581-9380, www.echofairhousing.org, Languages spoken: English, Spanish, French, Portuguese
- Lao Family Community Development, Inc. (Oakland and San Pablo, CA), 510-533-8850, www.laofamilynet.org, Languages spoken: English, Arabic, Cantonese, Chinese Mandarin, Hmong, Vietnamese, Cambodian, Swahili and Spanish
- NID-HCA (Oakland, CA), 510-268-9792, www.nidonline.org, Languages spoken: English and Spanish
- The Unity Council (Oakland, CA), 510-535-7181, www.unitycouncil.org, Languages spoken: English and Spanish
- Consumer Credit Counselors of the East Bay (Berkeley and Oakland, CA), 1-800-308-2227
- Housing Rights, Inc. (Berkeley and Richmond, CA), 510-548-8776, www.housingrights.org, Languages spoken: English and Spanish
- Project Sentinel (Fremont, CA), 510-574-2270, www.housing.org, Languages spoken: English and Spanish
- Community Housing Development Corporation of North Richmond (Richmond, CA), 510-412-9290-21, www.chdcnr.com, Languages spoken: English and Spanish
Emeryville Predatory Lending Prevention and Foreclosure Prevention Strategy
On December 18, 2007, the City of Emeryville adopted a new eight-step predatory lending prevention and foreclosure prevention strategy. Click here [pdf] for a copy of this strategy.
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