Homeowner’s Rehab Inc
11/06 Issue #3 Monthly Feature: Foreclosure Prevention
By J By Jennifer Jonassaint
H
ome foreclosure is on the rise in this country! However you don’t have to be a victim of it. Know what
you are getting before you get a home mortgage. Here are some practical tips to “Avoiding Foreclosure”
Avoiding Foreclosure
By Bankrate.com
Most people who sign a mortgage don't intend to walk away from it. Still, unforeseen circumstances -huge medical bills, lost jobs, divorce or eroding property values -- can overwhelm even the bestintentioned borrower. A simple twist of fate can leave you facing a homeowner's worst nightmare:
foreclosure.
Communicate with your Lender
Rest assured, where foreclosure is concerned, you and your lender are on the same side. Lenders want your money
and the interest that comes with it, not your house. If you seem to be a good risk, the lender will offer to help keep your
mortgage afloat. But be forewarned: If you seem like a bad risk, the lender may cut its losses by taking steps to
foreclose and evict you as quickly as possible.
The key is to contact the lender before your debt gets the better of you. The sooner your lender knows of your problem,
the more help it can provide.
Ways to avoid foreclosure
Here are some options your lender may offer you if you miss a payment and want to avoid foreclosure:
• Repayment plan: If you suffer a short-term financial setback (expensive car repairs, a medical emergency), your
lender may provide some breathing room by agreeing to let you pay off your missed payment in two installments over
the next two months.
• Loan modification: Mortgage servicers can adjust the terms of your loan -- most often by lengthening the
amortization schedule, lowering the interest rate or rolling the delinquent amount into the loan and reamortizing the
new balance -- to help you bring the loan current.
• Short sale: The lender allows you to sell the house for less than the outstanding loan amount, takes the proceeds
and forgives any remaining debt.
• Short refinance: The lender forgives some of your debt and refinances the rest into a new loan.
• Refinance with a "hard money" loan: You won't like the high rates and fees of a hard money loan -- one from a
private lender -- but it may buy you time to sell your home and avoid foreclosure.
Here is what a recent customer had to say about H.R.I. 1.
“Homeowners Rehab is a good program; the staff are helpful with seniors and low income
homeowners. They understand your needs and most of all they have a wonderful staff that
you can speak to. I recommend any person to HRI. I have been with them for over twenty
years. If it was not for HRI I don’t know what I would have done. Thank you all very much
and God bless
Stephanie Morris
Eaton Street, Area 4
The Home Improvement Program at HRI; Repairing Homes, One Home At A Time
Mary Smiling in Her Brand New Living Room
Mary’s New Washer and Dryer in her Brand New kitchen
A low income senior living on a very fixed income in area 4 whose home was in dire need of repair was referred to our
office for home improvement. Menotomy Weatherization helped Mary get a free heating system furnace, perform roof
repair and install wall and attic insulation. However there was a bigger problem, her home needed major repair and
she had no money to fix it. The home bathroom floor was leaking and the floor was rotted, the kitchen had sunken
floors, no cupboards or dishwasher. The antiquated washer and dryer located in the basement made life difficult for
Mary since she was suffering from a variety of illnesses. Mary was saddled with a mountain of high interest credit card
debt and had no way to pay for a loan to get the work done. She didn’t qualify for a traditional mortgage since her debt
was too high and her income too low. The Home Improvement Program (HIP) at Homeowner’s Rehab Inc. came to
Mary’s assistance, by providing affordable financing, free one on one financial counseling and technical and
construction assistance.
HIP staff conducted a comprehensive site visit to Mary’s home, helped her fill out all the required paperwork and
performed an initial home inspection. We recommended Mary acquire a grant to get her home free of lead. We helped
Mary fill out a LSC application and submitted all the necessary documentation. Lead Safe Cambridge (LSC) performed
lead abated windows, casings and walls and doors. HRI’s Construction Coordinator and a Rehab Specialist helped
Mary get rehab specifications, bids, get reliable contractors and sign a work contract. Mary’s home received a
complete face lift which included; new interior bulkhead door, complete bathroom, walls, floor, electric, plumbing,
interior paint, carpet, front porch, new washer/dryer, refrigerator, dishwasher, major carpentry and the installation of
smoke and carbon monoxide detectors. Mary expressed her many thanks to the HIP staff and expressed how much
she loves her entire home that’s now beautifully rehabbed. Her nine year old Grandson, who currently lives with her,
loves his new walls and ceilings in his bedroom and really like the new paint job in the home. Mary has a permanent
smile since she now can do her laundry without going to the basement, a working bathroom and brand new
cupboards.
Mary’s scenario is not unusual, since we see a number of seniors that are “house rich and cash poor”. Without the
affordable finances and the construction knowledge do wonder many of them, just do nothing. However with our
experienced and dedicated staff Homeowners Rehab Inc is committed to help Cambridge Homeowners repair
their home.
Your Home is a great Investment. Let Homeowner’s Rehab help you rehab your home.
Call us at 617-868-4858 or come by our office for an application
Homeowners Rehab Inc.
280 Franklin Street
Cambridge, MA 02139
Ph:617-868-4858*Fax:617-868-1022
[email protected] , www.homeownersrehab.org