"Almost everyone is uncomfortable
talking about money "
Olivia Mellan
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Foreclosure Intervention
Time is very important. When it comes to your home, you want to act early!
NeighborWorks of Western Vermont has several options for you if you are in foreclosure or are in danger of foreclosure. If you have received a Date of Sale, call immediately.
The NeighborWorks Process:
Call NWWVT (438-2303 ext. 218). We will help you determine if you are in immediate danger or not in immediate danger of losing your home.
If you are in immediate danger of losing your home we will mail you a packet of forms to fill out, or you can download them from the links below. When we receive your completed forms and paperwork we will call you to make an appointment with a Foreclosure Counselor. A Foreclosure Counselor will review your case and help you determine the best plan of action.
If you are not in immediate danger of losing your home, but are in the process of foreclosure or in danger of foreclosure you can sign up for Financial Fitness for Foreclosure after we receive all of your completed paperwork. Click Here for workshop dates.
Financial Fitness for Foreclosure:
This is a workshop for people in the early stages of foreclosure or in danger of foreclosure. It is free and will teach you how you can avoid foreclosure. Topics covered include: prioritizing debt, what to expect from your lender if you do miss a payment, foreclosure timelines, and increasing budgeting skills. Workshops are tailored to those attending therefore advance registration is required. Personal information is not discussed at the workshop. If you complete the workshop but feel you need more assistance you can make an appointment with a housing counselor.
Required Forms:
Please print and complete the Instruction Letter and Client Intake Package. Return forms and copies of all required documents to NeighborWorks of Western Vermont. You will NOT get an appointment until we receive your paperwork. This is YOUR responsibility.
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What You Can Do On Your Own
When it comes to your home, you want to act early. Time is very important!
- Talk with your lender early. Do not avoid your mortgage lender. Be honest and explain your situation. Often you can negotiate a payment plan. The longer you wait, the harder it will be for your lender to help you.
- If you get notice of legal action, contact an attorney or legal aide. Your attorney can help translate the legal jargon that goes along with foreclosure. He or she may be able to offer a proposal to your lender that defines a resolution.
- Organize your paperwork and take detailed notes with everyone you talk with. Remember to ask for, and write down the names of everyone you speak with.
- Review your budget. Are there things you could trim? Cut out entertainment, dining out and anything else that is not crucial. Do you have any resources to fix the problem? Can you access savings, insurance policies, retirement plans? Is a second job possible until you get caught up?
- Consider these options: Mortgage modification, Deed in lieu of foreclosure, special forbearance, partial claim, pre-foreclosure sale.
- Contact the HomeOwnership Center for assistance in determining which options may be your best options. 802-438-2303 x 218
- Contact the homeownership preservation foundation for free advice.
1-888-995-HOPE • www.995hope.org
or visit:
www.MakingHomeAffordable.gov
Foreclosure Process
30-60 days late - Your loan goes into collections. The lender will try to talk to you even if you are not willing to talk to them. This shows the courts they are trying to resolve the issue
30-90 days late - You receive a "Demand Letter" from you lender demanding for all back payments with interest and penalties within 30 days from the date on the letter. You case has probably moved to the lender's loss mitigation/foreclosure department.
90+ days late - Lender has a judge review the claim and issue a judgment in their favor. Lender sends a "Complaint of Foreclosure" to the court. You will receive notice from the court of this legal action from a sheriff called "Summons and Complaint". You must respond to the letter! You will receive a court date and you must go to court on that date. If the court finds that you did not honor your commitment to pay your mortgage, the court will probably rule in favor of the lender. In Vermont, you will generally have six months from the date of the courts ruling (not the complaint and summons) to pay off the entire amount due to your lender.
Glossary of Terms
Appraisal - An opinion or estimate of the value of the property
Bankruptcy - A legal judgment that debts cannot be paid. Generally, property is divided among creditors to partly satisfy outstanding debts
Call the note - Clause in the mortgage agreement allowing the lender to accelerate the debt repayment
Collateral - Property pledged as security for a debt
Deed in lieu - The act of giving property back without foreclosure
Default - The inability/unwillingness to live up to the conditions of an agreement
Delinquent - Unpaid and over due
Demand letter - At the lenders request (demand), you must pay the loan off in full
Foreclosure - A lender's right to claim your home in order to recover the full value of their loan to you.
Judgment - A court decree stating one's obligation, responsibility or debt
Lien - A debt against the property similar to a mortgage; usually for unpaid taxes
PMI - Private mortgage insurance protects lenders from losing money if a loan defaults
Summons and Complaint - Paperwork necessary to start a lawsuit
Other Resources
Legal
Vermont Lawyer Referral Services
(802) 828-3307
National Consumer Law Center
www.consumerlaw.org
Vermont Department of Banking, Insurance, Securities, & Health Care Administration (BISHCA)
(802) 828-1477
Direction
Consumer Credit Counseling Services
(800) 327-6778
Legal Services Law Line of Vermont
(802) 639-8857
Vermont Legal Aid, Inc.
(800) 769-7459
The sooner you act, the better your odds!
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