Foreclosure Prevention Services & Information
Questions? Need help?
There are many reasons homeowners fall into mortgage distress, including natural disasters, layoffs, medical emergencies, divorce, and others. It is important to address your mortgage during these times. We are here to help.
Fill out our intake form and one of our counselors will contact you shortly. Our services are free to homeowners.
Fill out our intake form and one of our counselors will contact you shortly. Our services are free to homeowners.
Our Services
Who We Are
FHANC is a non-profit organization that provides free fair housing, pre-purchase, and mortgage distress counseling to tenants and homeowners. Our Foreclosure Prevention Counselors are bilingual HUD-certified housing counselors available to assist homeowners with mortgage concerns in English and Spanish.
FHANC is a non-profit organization that provides free fair housing, pre-purchase, and mortgage distress counseling to tenants and homeowners. Our Foreclosure Prevention Counselors are bilingual HUD-certified housing counselors available to assist homeowners with mortgage concerns in English and Spanish.
|
Who We Serve
We provide free foreclosure prevention services in English and Spanish throughout Marin County, Sonoma County, Solano County, and beyond. We may be able to help you if:
|
|
What We Can Do
Our HUD-Certified Bilingual Foreclosure Prevention Counselors will take the following steps when working with a homeowner:
Our HUD-Certified Bilingual Foreclosure Prevention Counselors will take the following steps when working with a homeowner:
- Gather basic information about the client's housing needs or problems
- Educate the client on their fair housing rights and fair lending practices
- Assess housing affordability and develop a budget customized to the client's needs
- Identify resources that might help meet the client's needs or resolve the problem
- Design an action plan for the client that may include a loan modification, repayment plan, forbearance, short sale, refinance property tax deferral, applicable relief funds, or other available options
- Explain the action plan to the client, including the steps/tasks the client must take to achieve the client's goal
- Assist in accessing and implementing the action plan, including assisting with submitting applications and communicating with lenders
How to Access Our Services
- Call us or complete an online intake.
- Our services are free of charge to clients.
- Review our disclosure statement, which includes expectations for clients when working with a counselor.
Potential Alternatives to Foreclosure
Disaster Forbearance
If you have been struck by a disaster such as a fire, flooding or earthquake, and you have a mortgage, please give us a call. It is important to be in contact with your mortgage servicer during these times as assistance may be available, but the servicer will not take any steps without your authorization. You may be eligible for a disaster forbearance, which would allow you to suspend or reduce your monthly mortgage payment during this difficult time. FHANC may be able to help you request a disaster forbearance, monitor an existing forbearance, and/or assist you with exiting a forbearance when appropriate. Unlike other types of forbearance, a disaster forbearance will protect your credit while allowing you to miss payments. It will also keep foreclosure at bay. It is important to protect yourself from additional harm by taking this step. We are here to assist and advocate for you.
Forbearance (Unemployment and Special Circumstances)
A forbearance is a temporary pause or reduction in your monthly payment. It is a good option for mortgage holders who have lost their job. However, while a forbearance will keep you out of foreclosure, it will not protect you from credit harm, unless you receive a disaster forbearance. Please talk to us about this option before spending down your savings to pay off your mortgage. A forbearance can provide a temporary reprieve from mortgage obligations, but it has never been a solution to mortgage delinquency. And exiting an unemployment or special circumstance forbearance can be a challenge. We recommend speaking with a HUD certified counselor to see if this is the best option for you.
Reinstatement
If you have fully recovered from your hardship and can now pay the entire amount due, you may be able to reinstate your loan. Once you reinstate the loan, you will no longer be in danger of foreclosure. You can reinstate your loan up to 5 business days before an auction, although it is definitely not a good idea to wait that long. If you are already in the foreclosure process, reinstating your loan will involve requesting a reinstatement quote from the lender. This quote can take 3-5 business days to receive, and payment is time sensitive. Many people encounter problems with this process. Please contact us if you are experiencing problems with your lender or if need assistance with this process.
Repayment Plan
Borrowers who have recovered from their hardship but do not have the funds on hand to pay off their delinquency may be eligible for a repayment plan. Repayment plans are not easy to get. Although you may be eager to work with the lender, they will assess your debt-to-income ratio before deciding whether you are eligible for a repayment plan. Your current payment must be affordable (28-30% of your gross income) and must remain affordable once they add on the monthly repayment amount from your past due. Repayment plans vary in length and often require a down payment. If you breach a repayment plan, you can land right back in foreclosure, depending on the size and length of your delinquency at the time of the breach. Contact us for more information or assistance with this process.
Capitalization of Arrears
Sometimes a loan holder will be offered the option of capitalizing their mortgage delinquency. Capitalization means that instead of paying off the accrued interest and fees as they come due, they are added to the principal balance of the loan, effectively increasing the total amount owed on the loan. Although lenders were willing to offer this option more frequently during COVID, it is now rarely an available solution. If you have been offered the option of capitalizing your loan and would like more information, please contact FHANC.
Deferral or Partial Claim
A deferral or partial claim takes your past due balance and “puts it at the end of the loan.” A deferral pushes missed payments to the end of the loan, while a partial claim converts those missed payments into a separate, interest-free, junior lien that is repaid when the mortgage is paid off, refinanced, or the property is sold. A partial claim or deferral is intended to assist borrowers who can make their regular payment but cannot pay their past due balance. Fannie Mae, Freddie Mac and FHA loan holders are the most likely to be offered a zero-interest subordinate reclassification of their past due balance. Because partial claims and deferrals are intended to assist people who have fully recovered from their hardship, rendering their regular payments affordable again, many lenders will require trial periods to ensure that they have actually recovered from the hardship. During a trial period the borrower is usually required to make 2 or 3 timely payments without fail or delay before the partial claim or deferral will become permanent.
Modification
A modification is a permanent change in the terms of a mortgage loan. This may be a good option for a household that has partially recovered from a hardship, meaning they once again have the ability to make monthly payments but their income has not returned to the same level as it was prior to the hardship. A modification may include a change to the interest rate and/or the duration of the loan, and may include a subordinate lien, or a capitalization of arrearages.
Fannie Mae and Freddie Mac sometimes offer a "Flex Modification" that freezes the current interest rate and extends the term of the loan. While earlier versions of the Flex Modification often failed to sufficiently reduce monthly payments, a revised version was released in December 2024 that may better address the needs of borrowers.
The FHA offers modifications that change the interest rate to market level, which is often higher than the borrower's existing rate, making it a generally undesirable option. FHA modifications also extend the term of the loan and continue to provide partial claims. For this reason, FHA designed a new program referred to as the Supplemental Payment Program. This allows for a payment reduction of up to 25% for three years, with no change in the term or interest rate. At the end of the three year program, the payment returns to contract level and the difference between what the borrower paid and what you owed is put in a partial claim (0% interest subordinate lien).
For more information about modifications or any other alternative to foreclosure option, please contact FHANC.
If you have been struck by a disaster such as a fire, flooding or earthquake, and you have a mortgage, please give us a call. It is important to be in contact with your mortgage servicer during these times as assistance may be available, but the servicer will not take any steps without your authorization. You may be eligible for a disaster forbearance, which would allow you to suspend or reduce your monthly mortgage payment during this difficult time. FHANC may be able to help you request a disaster forbearance, monitor an existing forbearance, and/or assist you with exiting a forbearance when appropriate. Unlike other types of forbearance, a disaster forbearance will protect your credit while allowing you to miss payments. It will also keep foreclosure at bay. It is important to protect yourself from additional harm by taking this step. We are here to assist and advocate for you.
Forbearance (Unemployment and Special Circumstances)
A forbearance is a temporary pause or reduction in your monthly payment. It is a good option for mortgage holders who have lost their job. However, while a forbearance will keep you out of foreclosure, it will not protect you from credit harm, unless you receive a disaster forbearance. Please talk to us about this option before spending down your savings to pay off your mortgage. A forbearance can provide a temporary reprieve from mortgage obligations, but it has never been a solution to mortgage delinquency. And exiting an unemployment or special circumstance forbearance can be a challenge. We recommend speaking with a HUD certified counselor to see if this is the best option for you.
Reinstatement
If you have fully recovered from your hardship and can now pay the entire amount due, you may be able to reinstate your loan. Once you reinstate the loan, you will no longer be in danger of foreclosure. You can reinstate your loan up to 5 business days before an auction, although it is definitely not a good idea to wait that long. If you are already in the foreclosure process, reinstating your loan will involve requesting a reinstatement quote from the lender. This quote can take 3-5 business days to receive, and payment is time sensitive. Many people encounter problems with this process. Please contact us if you are experiencing problems with your lender or if need assistance with this process.
Repayment Plan
Borrowers who have recovered from their hardship but do not have the funds on hand to pay off their delinquency may be eligible for a repayment plan. Repayment plans are not easy to get. Although you may be eager to work with the lender, they will assess your debt-to-income ratio before deciding whether you are eligible for a repayment plan. Your current payment must be affordable (28-30% of your gross income) and must remain affordable once they add on the monthly repayment amount from your past due. Repayment plans vary in length and often require a down payment. If you breach a repayment plan, you can land right back in foreclosure, depending on the size and length of your delinquency at the time of the breach. Contact us for more information or assistance with this process.
Capitalization of Arrears
Sometimes a loan holder will be offered the option of capitalizing their mortgage delinquency. Capitalization means that instead of paying off the accrued interest and fees as they come due, they are added to the principal balance of the loan, effectively increasing the total amount owed on the loan. Although lenders were willing to offer this option more frequently during COVID, it is now rarely an available solution. If you have been offered the option of capitalizing your loan and would like more information, please contact FHANC.
Deferral or Partial Claim
A deferral or partial claim takes your past due balance and “puts it at the end of the loan.” A deferral pushes missed payments to the end of the loan, while a partial claim converts those missed payments into a separate, interest-free, junior lien that is repaid when the mortgage is paid off, refinanced, or the property is sold. A partial claim or deferral is intended to assist borrowers who can make their regular payment but cannot pay their past due balance. Fannie Mae, Freddie Mac and FHA loan holders are the most likely to be offered a zero-interest subordinate reclassification of their past due balance. Because partial claims and deferrals are intended to assist people who have fully recovered from their hardship, rendering their regular payments affordable again, many lenders will require trial periods to ensure that they have actually recovered from the hardship. During a trial period the borrower is usually required to make 2 or 3 timely payments without fail or delay before the partial claim or deferral will become permanent.
Modification
A modification is a permanent change in the terms of a mortgage loan. This may be a good option for a household that has partially recovered from a hardship, meaning they once again have the ability to make monthly payments but their income has not returned to the same level as it was prior to the hardship. A modification may include a change to the interest rate and/or the duration of the loan, and may include a subordinate lien, or a capitalization of arrearages.
Fannie Mae and Freddie Mac sometimes offer a "Flex Modification" that freezes the current interest rate and extends the term of the loan. While earlier versions of the Flex Modification often failed to sufficiently reduce monthly payments, a revised version was released in December 2024 that may better address the needs of borrowers.
The FHA offers modifications that change the interest rate to market level, which is often higher than the borrower's existing rate, making it a generally undesirable option. FHA modifications also extend the term of the loan and continue to provide partial claims. For this reason, FHA designed a new program referred to as the Supplemental Payment Program. This allows for a payment reduction of up to 25% for three years, with no change in the term or interest rate. At the end of the three year program, the payment returns to contract level and the difference between what the borrower paid and what you owed is put in a partial claim (0% interest subordinate lien).
For more information about modifications or any other alternative to foreclosure option, please contact FHANC.
Fair Housing Protections for Homeowners
Homeowners are protected from discriminatory behavior from appraisers, lenders, homeowner’s associations, realtors, insurance adjusters, and other professionals involved in the provision of housing or credit. FHANC has represented several clients around the Bay Area who have alleged racial discrimination during the appraisal process. If you are a homeowner who suspects unfair practices or discriminatory behavior, please contact us. FHANC’s counselors may be able to assist you with advocacy, counseling, investigations, and/or representation in a complaint to HUD's Office of Fair Housing and Equal Opportunity (FHEO) or the California Civil Rights Department (CRD) if you reside in Alameda, Solano, Marin, or Sonoma County. If you live elsewhere, we can help find another organization to assist you.
Mortgage Foreclosure Scams
Some of the fastest growing frauds sweeping the nation are foreclosure rescue scams. If you believe you have been a victim of a mortgage foreclosure scam, please contact us immediately for assistance.
Protect yourself by following these suggestions:
Protect yourself by following these suggestions:
- Do not sign a contract under duress and do not sign a document that you do not understand - always request time to review any documents at your own pace
- Do not enter into oral agreements - get any offers in writing and ask a lawyer or HUD-certified housing counselor to review them
- Do not make payments to anyone except your mortgage company
- Do not sign a quit claim deed without consulting an attorney or housing counselor
- Do not accept an offer from somebody who wants to make good on your missed payments and take the house off your hands in exchange for documents that assign them the surplus from the foreclosure sale
