This booklet explains how property owners can avoid losing their homes

because of delinquent payments.

Este folleto explica a los propietarios de casas como evitar perder su hogar

debido al incumplimiento en los pagos. Para información en español

llame a la entidad que le dió el préstamo.

www.hud.gov

HOW TO AVOID FORECLOSURE

U.S. Department of Housing and Urban Development

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WHAT HAPPENS WHEN I MISSMY MORTGAGE PAYMENTS?

Foreclosure may occur. This is the legal means that your

lender can use to repossess (take over) your home. When this

happens, you must move out of your house. If your property

is worth less than the total amount you owe on your

mortgage loan, a deficiency judgment could be pursued. If

that happens, you not only lose your home, you also would

owe HUD an additional amount.

Both foreclosures and deficiency judgments could seriously

affect your ability to qualify for credit in the future. So you

should avoid foreclosure if possible.

WHAT SHOULD I DO?

1. DO NOT IGNORE THE LETTERS FROM YOUR

LENDER. If you are having problems making your pay-

ments, call or write to your lender's Loss Mitigation

Department without delay. Explain your situation. Be

prepared to provide them with financial information,

such as your monthly income and expenses. Without this

information, they may not be able to help.

2. Stay in your home for now. You may not qualify for

assistance if you abandon your property.

3. Contact a HUD-approved housing counseling agency. Call

1-800-569-4287 or TDD 1-800-877-8339 for the

housing counseling agency nearest you. These agencies are

valuable resources. They frequently have information on

services and programs offered by Government agencies as

well as private and community organizations that could

help you. The housing counseling agency may also offer

credit counseling. These services are usually free of charge.

WHAT ARE MY ALTERNATIVES?You may be considered for the following:

Special Forbearance. Your lender may be able to arrange a

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repayment plan based on your financial situation and may

even provide for a temporary reduction or suspension of

your payments. You may qualify for this if you have recently

experienced a reduction in income or an increase in living

expenses. You must furnish information to your lender to

show that you would be able to meet the requirements of the

new payment plan.

Mortgage Modification. You may be able to refinance the

debt and/or extend the term of your mortgage loan. This

may help you catch up by reducing the monthly payments

to a more affordable level. You may qualify if you have

recovered from a financial problem and can afford the new

payment amount.

Partial Claim. Your lender may be able to work with you

to obtain a one-time payment from the FHA-Insurance

fund to bring your mortgage current.

You may qualify if:

1. your loan is at least 4 months delinquent but no more

than 12 months delinquent;

2. you are able to begin making full mortgage payments.

When your lender files a Partial Claim, the U.S.

Department of Housing and Urban Development will pay

your lender the amount necessary to bring your

mortgage current. You must execute a Promissory Note, and

a Lien will be placed on your property until the Promissory

Note is paid in full.

The Promissory Note is interest-free and is due when you

pay off the first mortgage or when you sell the property.

Pre-foreclosure sale. This will allow you to avoid

foreclosure by selling your property for an amount less than

the amount necessary to pay off your mortgage loan.

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You may qualify if:

1. the loan is at least 2 months delinquent;

2. you are able to sell your house within 3 to 5 months; and

3. a new appraisal (that your lender will obtain) shows

that the value of your home meets HUD program

guidelines.

Deed-in-lieu of foreclosure. As a last resort, you may be

able to voluntarily “give back” your property to the lender.

This won't save your house, but it is not as damaging to

your credit rating as a foreclosure.

You can qualify if:

1. you are in default and don't qualify for any of the other

options;

2. your attempts at selling the house before foreclosure were

unsuccessful; and

3. you don't have another FHA mortgage in default.

HOW DO I KNOW IF I QUALIFY FORANY OF THESE ALTERNATIVES?

Your lender will determine if you qualify for any of the

alternatives. A housing counseling agency can also help you

determine which, if any, of these options may meet your

needs and also assist you in interacting with your lender.

Call 1-800-569-4287 or TDD 1-800-877-8339.

SHOULD I BE AWARE OF ANYTHING ELSE?

Yes. Beware of scams! Solutions that sound too simple or

too good to be true usually are. If you're selling your

home without professional guidance, beware of buyers

who try to rush you through the process. Unfortunately,

there are people who may try to take advantage of your

financial difficulty. Be especially alert to the following:

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Equity skimming. In this type of scam, a “buyer”

approaches you, offering to get you out of financial trou-

ble by promising to pay off your mortgage or give you a

sum of money when the property is sold. The “buyer”

may suggest that you move out quickly and deed the

property to him or her. The “buyer” then collects rent for

a time, does not make any mortgage payments, and

allows the lender to foreclose. Remember, signing over

your deed to someone else does not necessarily relieve

you of your obligation on your loan.

Phony counseling agencies. Some groups calling

themselves “counseling agencies” may approach you and

offer to perform certain services for a fee. These could well

be services you could do for yourself for free, such as negoti-

ating a new payment plan with your lender, or pursuing a

pre-foreclosure sale. If you have any doubt about paying for

such services, call a HUD-approved housing counseling

agency at 1-800-569-4287 or TDD 1-800-877-8339.

Do this before you pay anyone or sign anything.

ARE THERE ANY PRECAUTIONSI CAN TAKE?

Here are several precautions that should help you avoid

being “taken” by a scam artist:

1. Don't sign any papers you don’t fully understand.

2. Make sure you get all “promises” in writing.

3. Beware of any contract of sale or loan assumption where

you are not formally released from liability for your

mortgage debt.

4. Check with a lawyer or your mortgage company before

entering into any deal involving your home.

5. If you’re selling the house yourself to avoid foreclosure,

check to see if there are any complaints against the

prospective buyer. You can contact your state’s Attorney

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HUD APPROVED HOUSING COUNSELING AGENCIES IN WYOMING

WYOMING HOUSING NETWORK, INC. Program Development Director 2345 East 2nd Street Casper, WY 82609 Telephone: (307)472-5843 Fax: (307)472-0893 FINANCIAL SOLUTIONS OF WYOMING 441 South Center, Suite 100 Casper, WY 82602 Telephone: (307)234-8771 Toll Free: (800)390-2227 Fax: (307)235-1618 Type of Counseling: Pre-purchase, Default/Foreclosure and HECM Counseling INTERFAITH OF NATRONA COUNTY, INC. 1514 East 12th Street, #303 Casper, WY 82601 Telephone: (307)235-8043 Fax: (307)235-8711 E-mail: interfaithnc@yahoo.com CONSUMER CREDIT COUNSELING SERVICEOF NORTHERN COLORADO & SOUTHEAST WYOMING - AKA - GREENPATH DEBT SOLUTIONS 1912 Capital Avenue, Suite #320 Cheyenne, WY 82001 Telephone: (307)638-3559 Toll Free: (800) 424-2227 Fax: (970)336-0004 Website: www.greenpath.com Type of Counseling: HECM, Default/Foreclosure, Rental and Pre-Purchase Counseling NORTHERN ARAPAHO TRIBAL HOUSING 501 Ethete Road Ethete, WY 82520 Telephone: (307)332-0230 Type of Counseling: Pre-Purchase and Rental Counseling WYOMING FORECLOSURE HOTLINE Wyoming Attorney General's Office & Brothers Redevelopment, Inc. Telephone: (855)996-2256 Main office in Cheyenne, WY Type of Counseling: Foreclosure Prevention, Refinance Options, Pre-purchase housing counselor

If you would like us to look at any type of repayment or forbearance plan or short sale (pre-foreclosure sale), we need you to fill out, gather and return ALL the following information (if applicable) as soon as possible: • please read fully the enclosed pamphlet on How to Avoid

Foreclosure • fill out fully and sign the financial information • copies of your last 4 paystubs OR verification of

employment (if you use the verification, please fill out #'s 1, 7 & 8 ONLY) OR contractual letter from new employer

• 2 current paystubs or letter from any person you are getting money from monthly that is not listed on the loan

• proof of child support, unemployment, social security received (i.e. letter of award) if applicable

• FULL copies of your most current 2 years tax returns • copies of your most current 3 months bank statements -

this must include ALL accounts, checking, savings and investment accounts

• DETAILED letter explaining why loan is delinquent (why your income has been reduced or your debt load has increased)

• proof of bills that are not normal, monthly bills (i.e. medical, IRS, collections/judgments) and letters of agreement of the monthly payments

• proof of child support payments • copy of divorce decree • proof of rent money received. i.e. lease agreement or

letter from renter

Name:_________________________

Wyoming Community Development Authority

MONTHLY MONTHLY$ -$ $ -$

-$ -$ -$ -$ -$

$ $-$ $

$-$ $

$$ $$$ $$ $$ -$

$-$ $

Car payment #2 Balance = -$ -$ $ -$ $

-$ $$ $$ $$ $$ $$ -$

$$$ $

-$ -$ $ $

-$ $-$

-$ -$ Student loan(s Balance= $

$ Credit Card #1 Balance= $$ Credit Card #2 Balance= $

Credit Card #3 Balance= -$ -$ Credit Card #4 Balance= -$ -$ Medical bills Balance= -$ -$ Personal loans Balance= $

$ Other Balance= -$ -$ Other Balance= -$

Second mortgage - principal & int

Budget will automatically calculate mathematical equations. Please enter projected monthly household expenses.

TRANSPORTATIONCable/Satellite/Internet

Homeowners Insurance

Newspapers & magazines

Holidays

Public transportation

Car InspectionAuto Insurance

EDUCATION

PERSONAL

Property taxes

Video rentals

Homeowners association duesMortgage insurance

Tuition & lessons

CharityTithe

otherother

Parking & tolls

License plates & registration feesCar Repair & Maintenance

Fitness or socials clubs

First mortgage - principal & intere

Birthdays

Other

UTILITIES

GIFTS

Telephone/CellWater/Sewer/TrashGas

Work related (lunches or snacks)

Health (medical/dental if not payroll dedu

DONATIONS

Doctor

OtherDisabilityLife

Home maintenance & furnishingsSchool lunches

PostagePet care & supplies

Prescriptions

Other

Other

MEDICAL

INSURANCE

Chiropractor

Dentist

Checking account fees

Groceries

Books, papers & supplies

Electric

ToiletriesBarber & beauty shop

Other

other

Other

FOOD

Movies, sporting events, concerts

HouseholdBeer/wine/liquorTobacco allowanceChildren's allowance

Gas

Other

Car payment #1 Balance =

Projected Monthly Budget

MISCELLANEOUS

HOUSING

ENTERTAINMENT

DEBTS

Eating out

Other

Other

Gambling & lottery tickets

Hobbies or craftsVacation or trips

Name:_________________________

Wyoming Community Development Authority

Other Balance= -$ $$ $$ $

$$ $

-$ $INCOME Gross Net

Salary - Homeowner #1 $ $ $Salary - Homeowner #2 $ $ $Social Security $ $ $Unemployment $ $ $Disability $ $Child support -$ -$ Alimony $ $Other -$ -$

$ $$

-$

(Housing+Debt / Gr. Income)

Total Mortgage(s) Balance

Other

Second Mortgage Balance

Laundry/dry cleaningDEDUCTIONS FROM INCOME

Clothing

Child support/AlimonyChildcare or babysitter

CLOTHING

CHILDCARE

Housing Ratio (Total/Gross Inco

Total Debt Ratio

Estimated Property Value

#DIV/0!-$

-$

Total PITI, MI, HOA

Housing Expenses + Debt

#DIV/0!-$

#VALUE!First Mortgage LTV

#DIV/0!

TOTAL MONTHLY EXPENSES

First Mortgage Housing Ratio

-$

-$

TOTAL NET MONTHLY INCOME

FOR OFFICE USE ONLY

#VALUE!Total Loan To Value (LTV)

TOTAL GROSS MONTHLY INCO

DIFFERENCE (Net Income - Expe

First Mortgage Balance

-$

Other401k deductionIRA deductionMonthly savings

OTHER EXPENSES

PLEASE REMEMBER:

PAYMENT PLANS: * Credit Reporting: Please note that we will continue to report the delinquency status of your loan to credit reporting agencies as well as your entry into a Forbearance Plan in accordance with the requirements of the Fair Credit Reporting Act and the Consumer Data Industry Association requirements. CREDIT SCORING COMPANIES GENERALLY CONSIDER THE ENTRY INTO A PLAN WITH MODIFIED PAYMENTS AS AN INCREASED CREDIT RISK. AS A RESULT, ENTERING INTO A PLAN WITH MODIFIED PAYMENTS MAY ADVERSELY AFFECT YOUR CREDIT SCORE, PARTICULARLY IF YOU ARE CURRENT ON YOUR MORTGAGE OR OTHERWISE HAVE A GOOD CREDIT SCORE. ***THIS WILL NOT EFFECT YOUR CREDIT RATING IF WE ARE RECEIVING THE PAYMENTS BEFORE THE END OF THE MONTH IN WHICH IT THEY ARE DUE PRE-FORECLOSURE (SHORT SALE) OR DEED IN LIEU OF FORECLOSURE: * Credit Reporting: Please note that we will report to the credit bureaus that a short sale or deed in lieu was accepted by W.C.D.A. after proper documents are filed. AS A RESULT, THIS WILL ADVERSELY AFFECT YOUR CREDIT SCORE, PARTICULARLY IF YOU ARE CURRENT ON YOUR MORTGAGE OR OTHERWISE HAVE A GOOD CREDIT SCORE. * Borrower must be in default before W.C.D.A. can consider a Pre-foreclosure Sale (short sale) or Deed In Lieu of foreclosure. * On FHA loans this will be reported on CAIVRS. Borrower(s) will not be able to obtain a FHA loan for a minimum of three (3) years. * On FHA loans Borrower(s) may be subject to a cash contribution. * Please be aware that in the event that WCDA forgives your debt, or any portion of it, there may be tax consequences to you as a result. You should consult with your tax advisor about any such potential tax consequences. WCDA does not provide any tax advice so we cannot answer any questions about tax consequences that you may have. SERVICE MEMBERS * All Service members should obtain guidance from your employer regarding the potential impact on security clearance and employment