Home Ownership in Tough Times Your Guide to Avoiding Foreclosure

1. Home Ownership in Tough Times Your Guide to Avoiding Foreclosure Katrina F. Boyer Consumer Group Relations Coordinator Department of Banking and Securities 717.214.5565 1.800.PA.BANKS (1.800.722.2657) 10/24/2012

2. Homeownership in Tough Times Today we will discuss: • Essential steps in protecting home ownership • Other options – if you simply cannot maintain home ownership • Resources for getting help • Common scams and ways to avoid them • Tips and resources to avoiding financial disasters

3. Homeownership in Tough Times The American Dream?

4. Homeownership in Tough Times • Financial crisis hit… • What are some causes of default or eminent default? • Job Loss • Health Deteriorates • Emergency Home Repairs • Death • Divorce • Underemployment

5. Homeownership in Tough Times Now what? Step 1: Stay in Your Home!

6. Homeownership in Tough Times Step 2: • Talk to your lender – • Be prepared to talk about: • Your individual circumstances • How long you expect to experience the hardship • Any resources you may possess Keep track of all conversations – for instance, a notebook with folders for any and all documents.

7. Homeownership in Tough Times Acronyms and Jargon… HAMP “Home Affordable Modification Program” HAFA “Home Affordable Foreclosure Alternatives program” MHA “Making Home Affordable” HARP “Home Affordability Refinance Program” LTV “Loan to Value” Fair Market Value DTI “Debt to Income” BPO “Brokers Price Opinion” Underwater Loan Modification

8. Homeownership in Tough Times Step 3 Seek Help – The Pennsylvania Department of Bankingand Securities’ Consumer Services staff may be able to offer guidance: 1.800.PA.BANKS (1.800.722.2657) • Talk to you about your situation and what options may be suitable • Contact the loan servicer on the your behalf • Mediate between the you and the servicer • Help you find a certified housing counselor in your community

9. Homeownership in Tough Times Housing Counselors can be a great resource! Find a local certified housing counselor at: Pennsylvania Housing Finance Agency 1.800.342.4287 or www.phfa.org U.S. Department of Housing and Urban Development (HUD) 1.800.869.4287 or www.hud.gov

10. Homeownership in Tough Times The U.S. Department of Treasury launched the Making Home Affordable Program that may help certain homeowners avoid foreclosure. www.makinghomeaffordable.gov The website is designed to help individuals find out if they may qualify for the federal loan modification program. There is even an interactive tool that can help you determine your eligibility.

11. Homeownership in Tough Times No access to Internet? Get around-the-clock help from housing experts by phone 1.888.995.HOPE (4673) Free comprehensive foreclosure assistance is always available – in more than 160 languages Try to have your financial documents close by – things like mortgage statements, pay stubs, tax returns, bank statements, utility bills, credit card information, savings and other assets, and a letter describing your circumstances.

12. Homeownership in Tough Times Just a few programs that may be available… • Federally sponsored loan modification like HAMP, HARP, etc… • “In house” modification • Repayment plan • Local assistance programs through city or county resources There are many other programs offered, but if you do not ask and seek out the information, you will get nothing.

13. Homeownership in Tough Times BEWARE OF SCAMS! People who are delinquent on mortgage payments are prime targets for unscrupulous individuals that WILL try to take advantage of them. Be very cautious when dealing with any individual, check them out using your own resources, trust no one until you have done your homework.

14. Homeownership in Tough Times • Watch out for: • The offer sounds “too good to be true” • Upfront fees • Anyone who offers a guarantee • Forensic loan audits • Rent to own or lease/buy back offers If you believe an offer may be a scam or something just does not “feel right,” the PA Department of Banking and Securities’ Consumer Services staff may be able to help. Contact us at 1.800.PA.BANKS (1.800.722.2657)

15. Homeownership in Tough Times Other Options: • Deed in Lieu of Foreclosure • Short Sale • Bankruptcy • Cash for Keys • Home Affordable Foreclosure Alternatives Program • HEMAP Before you take any of these actions, you may want to contact a qualified housing counselor or attorney with expertise in these kinds of matters.

16. Homeownership in Tough Times Be “pro-active” Tips to Avoiding Financial Disasters • Understand the contract before you sign • Avoid debt • Protect your credit rating • Prioritize your debts The PA Department of Banking and Securities maintains a website: www.moneysbestfriend.com. Check it out for a better understanding of many financial issues.

17. Homeownership in Tough Times We have covered: • Essential steps in protecting home ownership • Resources for getting help • Other options – if you simply cannot maintain home ownership • Common scams and ways to avoid them • Tips and resources to avoiding financial disasters

18. Homeownership in Tough Times You can reach one of our Consumer Services Specialists at: 1.800.PA.BANKS (1.800.722.2657) The phone call is free and so are our services. Sometimes just talking through your circumstances can help you understand your options. Our specialists can help you determine what your next steps might be.

19. Homeownership in Tough Times Contact me: Katrina F. Boyer Consumer Group Relations Coordinator Pennsylvania Department of Banking and Securities 17 N 2nd St, Suite 1300 Harrisburg, PA 17101 717.214.5565 1.800.PA.BANKS (1.800.722.2657)