Special Report KEEP YOUR HOME AFFORDABLE Foreclosure from page 11 need to pick up the phone and call to determine if they may be eligible. "It is amazing:' Beemer said. "If we told families they could turn in their clunkers for $3,000 off on a new car, we might have a line around the building. But if we tell people they can save as much as 50 percent on their monthly mortgage payment that could amount to tens of thousands of dollars over the life of the loan, they do not call until they are in default or facing loss of their home to foreclosure. They think a loan modification program is not for people who are current on their mortgage or is too complicated." "Our goal," Burkhardt said, "is to help people navigate the system and to take some of the headache out of the process and improve their financial lives." JHA was started in January 2008 at the offices of Jewish Family Service of Metropolitan Detroit in West Bloomfield to assist Jewish homeowners who were in foreclosure. In July 2009, the govern- ment expanded programs to assist not just low-income families or families in default on their mortgage loans, but also middle-income families who are not in default and trying to make ends meet. JHA is providing the personnel, sys- tems and process for people to easily file applications, determine eligibility and negotiate a reduction in their home mortgage payment free of charge. JHA opened its Southfield office, but does not want to experience the • • • • 0 0 C, 0 • • 6v C ........................ • JHA At A Glance • Formed in January 2008, the nonprofit "The intent of the program is corporation maintains two offices: • The West Bloomfield office in the to allow people to sleep better • Jewish Family Service building is set up • to assist families who are experiencing at night and to avoid being • serious delinquency or foreclosure along • with familial issues affecting the stability delinquent on their mortgage of their families. Working in coordina- • tion with all of the services available to due to a worsening economy, our community through Jewish Family Service and other sister agencies, the especially in the Detroit area." West Bloomfield office is designed to - Patricia Burkhardt, managing director • 0 Cr 0 0 0 0 0. 0 0 0 . stabilize families in urgent need of com- munity resources; 0 cf.' 0 0 0 0 0 0 0 0 0 0 0 0 Co same problem the program is having nationally. About 11 percent of eligible families have submitted Making Home Affordable applications. "This is too valuable a program to simply let go unnoticed and under utilized by our community," Burkhardt said. "Lifestyle choices that middle-income families enjoyed before the current crisis can be made easier if they take advantage of this program." There are many for-profit loan modi- fication companies that charge as much as $2,500 to $5,000 for this service, which is being offered free of charge to the Detroit Jewish community. While JHA staff salaries have been funded by generous individual donations, JHA has C. 0 • • C. r C many programs that donors can give to; special funding gifts can be individually tailored. The Jewish Housing Association speaks to one of Federation's core val- ues: strengthening our community. "The beauty of the JHA programs is that they provide the expertise to help families who are struggling to access govern- ment tools that will greatly reduce their expenses," said Federation CEO Scott Kaufman. "The savings to families is tremendous relative to the investment of communal funds in the JHA." More useful information is 0 0 0 3 C 0 available at www.jhamd.org. 0 0 0 0 0 0 0 0 0v 0 s o Call JHA for a • confidential review: • (248) 592-3980 or (800) 458-0404. .0 0 .0 0 7. 0 0 0 0 0 • In 2009, the U.S. Department of Housing and Urban Development created a loan modification program to assist middle-income families. JHA opened a Southfield office to assist middle- income families in filing these applica- tions to determine eligibility under the Home Affordability Modification Program (HAMP) and Home Affordability Refinance Program (HARP). 00000 00 .00000 0 000000 Understanding Your Housing Options Q: I have been hearing of some new government programs to save my home and I'm confused about what to do or I've already filed paperwork with the mortgage company to modify my mortgage or put a repayment plan in place but can't get anyone to help me. What do I do now? A: There are new programs coming out all the time. In particular, under the Making Home Affordable Initiative, as modified in July 2009, you do not have to be in default (behind) on your mortgage to qualify. There are two types of assistance under this pro- gram. One allows a modification of the current terms of your mortgage so that you can reduce your mortgage payment and the other offers a refinance of your mortgage even if you owe more than your house is worth. For those mortgage companies that don't participate in these programs, most are offering some type of relief. You can contact JHA directly and one of its loan modification specialists can determine if you are eligible and explain options that might be available to you based on current programs being offered not only by the participating lenders in federal government programs. A: A Notice of Default is the first indication that the mortgage company is flag- ging your account for future legal action if you do not address the delinquency of your mortgage payments. In most cases, a Notice of Default is issued after you have not paid your mortgage payment for at least one to two months in a row. It requires a response by a certain date before your account is forwarded to an attorney to begin the formal legal proceedings to foreclose on your home. It is important that you contact your mortgage company right away to discuss your options. Q: Are there any new laws that can help me avoid foreclosure of my home? A: Effective July 5, 2009, Michigan law also requires foreclosure proceedings can not commence unless notification is given by the law firm filing the foreclosure allowing 14 days to begin working with a foreclosure counselor to negotiate a work- out plan. Assuming you make the timely request, you may have at least 90 days to negotiate a loan modification. Q: Does having cash in the bank prevent qualification for loan modification? A: While many banks limit eligibility for loan modification if you have cash in the bank, Q: I am behind on my mortgage payments and other bills and am afraid that I will lose my home. What can I do? generally IRAs, pension and profit-sharing plans and other retirement assets will not adversely affect your ability to qualify for such modification. Also, most lenders allow you to have at least three times your monthly mortgage payment as cash in the bank. A: You can contact JHA for a confidential interview. After providing some basic information, an appointment can be set up for you. Since every situation is specific to each family's circumstances, a plan of action tailored to meet your goals and specific needs will be created to help you. Depending on your situation, some of the options that may be available are: • Determine if the federal Home Affordability Modification Program (HAMP) Q: I have received a Notice of Default in the mail from my mortgage servicer. Am I losing my home? 12 December 3 = 2009 C,