Roles of a Housing Counselor

Transcription

1 Roles of a Counselor Homeowners! Get real help, free of charge from a HUD approved counseling agency. Denise Keiser, Executive Director Center for Financial Health

2 Who is a housing counselor? Employed by a nonprofit agency Agency is approved by HUD Certified by State of Michigan (MSHDA) Non-biased Adoption of National Industry Standards Experienced in the housing or financial market

3 Why do homeowners need counseling? counseling better prepares borrowers to recognize and accept the responsibilities of owning a home. by getting households into homes they can afford, and afford to keep, homeownership counseling is attributed with stabilizing families and neighborhoods and reducing default risk to lenders. A Little Knowledge is a Good Thing. Empirical Evidence of the Effectiveness of Pre-purchase Homeownership Joint Center for Studies, Harvard University

4 Why do homeowners need counseling? Recognizing the importance of providing sound information and advice both to prospective homebuyers and actual homeowners, policy makers have increasingly turned to homebuyer education and counseling as a means to help borrowers succeed as homeowners and to remedy problems that impede borrower s ability to pay their mortgages. Homeownership Education & : Do we know what works? Research Institute for America Mortgage Bankers Association

5 Why do homeowners need counseling? a homeowner who works with a housing counselor is nearly two times more likely to avoid foreclosure than those who go it alone. Neighborworks America

6 How are Counselors Certified? Ensure all clients receive high quality education and counseling Ensure counselors are providing professional services Services are consistent Act on behalf of client observing their best interest HUD Approved MSHDA Approved National Industry Standards

7 Services Provided Home Buyer Education Workshops Financial Fitness Workshops Post-Purchase Workshops Pre-Purchase Foreclosure Prevention HECM Reverse Mortgage Tenant Free of Charge!

8 How can a housing counselor help? Analyze client s financial health Develop a specific Action Plan Non-biased review of loan/purchase documents Resource provider referrals to services Information hub Free of Charge!

9 How can a housing counselor help? Pre-Purchase Review tri-merge credit report Assess mortgage readiness Develop a specific Action Plan Apply for down payment assistance Non-biased referral to loan officer, Realtor, Home Inspector, Appraiser, etc. Available for follow up throughout the process Resource provider - Information hub Review Loan and/or Purchase documents Free of Charge!

10 How can a housing counselor help? Pre-Purchase Affordable Financing Down Payment Assistance IDA Individual Development Accounts Mortgage Credit Certificate (Tax Credits) Affordable Homes (for Sale) Free of Charge!

11 How can a housing counselor help? Foreclosure Prevention Review tri-merge credit report Assess financial picture and reason for default Develop a specific Action Plan Provide timeline and foreclosure process Explain options for foreclosure prevention Contact Lender with client Submit workout request to lender for consideration Available for follow up throughout the process Resource provider - Information hub Review workout documents Free of Charge!

12 What options may be available to prevent foreclosure? Pay delinquency bring mortgage current Loan modification Making Home Affordable In-house Modification (per lender) Michigan s Hardest Hit Program Deed in Lieu (of foreclosure) Sale of home Short Sale?

13 Alert homeowners about loan modification scams! I have already applied for a modification but XYZ Government Modification Co. is promising me that: I am pre-approved I can have my modification in 30 days They have a 90% success rate I only need to give them $750 to get started! Should I work with them?

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15 Beware of foreclosure rescue scams If homeowner is asked to pay upfront fees If someone says I can save your home! Never make the mortgage payment to anyone but the lender. Rent-to-own or lease back Never sign title to the home to anyone unless you are selling it.

16 Where can I report a scam? scamalert.org Call the FTC at 877-FTC-HELP Call Michigan State Attorney Generals Office

17 My loan is scheduled for foreclosure soon. What should I do? Contact your lender immediately. Ask to be considered for a HAMP (modification). Contact a HUD-approved housing counselor. Open all of your mail.

18 Find a local housing counselor Call Search online housing counseling agency Michigan _search/

19 Partnership Opportunities Refer clients to your local Counselor Ask your local Counselor to co-host an event at your location Volunteer to speak at a HBE or Financial Fitness Workshop

20 Thank you! Denise Keiser, Executive Director Center for Financial Health (517) ext 2546