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Housing Counselors: State Resources to Save Homes State Home Foreclosure Prevention Project Update November 3, 2009 2:1

Housing Counselors: State Resources to Save Homes State Home Foreclosure Prevention Project Update November 3, 2009 2:15PM-3:30PM Raleigh Convention Center Tami Hinton Director of Consumer Affairs NC Office of the Commissioner of Banks. Overview.

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Housing Counselors: State Resources to Save Homes State Home Foreclosure Prevention Project Update November 3, 2009 2:1

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  1. Housing Counselors: State Resources to Save Homes State Home Foreclosure Prevention Project UpdateNovember 3, 2009 2:15PM-3:30PM Raleigh Convention Center Tami Hinton Director of Consumer Affairs NC Office of the Commissioner of Banks

  2. Overview • State Home Foreclosure Prevention Project (SHFPP) Latest Updates • Counselor Agency Referrals • Success Stories

  3. Fight NC Foreclosure PSA • Announced on September 15, 2009 • Partnered with MMI (largest HUD-approved non-profit telephone counseling agency in the country) • Toll free at 1-866-234-4857 or www.fightncforeclosure.org • Foreclosure rate up 7% this year, and 60% are on prime loans • Homeowners with prime loans can call for assistance • Over 900 homeowners have called for assistance since September 15, 2009 • Over 300 intake sessions completed • Goal to prevent unnecessary foreclosures in NC

  4. Fight NC Foreclosure PSA • Sponsored by Capitol Broadcasting, Center for Responsible Lending – an affiliate of Self Help, NC Association of Realtors, SECU, and Z-Smith Reynolds

  5. Summary of SHFPP • Over 30 NC HUD-approved counseling agency partners have committed to accept over 1400 calls per month from homeowners. • Connectinc. has received over 14,000 calls from homeowners • Counseling agency partners have provided over 6000 counseling sessions. • NCCOB has mailed out over 70,000 foreclosure help letters. • NC has strong counseling organizations doing this work for free that can offer assistance to referred homeowners. • Over 2200 foreclosures prevented since inception of SHFPP.

  6. Success Stories CCCS of Forsyth County The Smith’s called SHFPP for help after a layoff, several months prior, dramatically slashed their monthly income. After an exhaustive search for employment, Derek found a job; however, several months of unemployment income had been insufficient to keep this family of 5 on track financially. Through SHFPP, Derek and Paulette received financial counseling, help negotiating with the lender, a 30 day extension to reach a solution with the lender, and ultimately a loan modification. In July, 2009, after the lender agreed to an almost $300 monthly payment reduction and required no upfront payment, Derek and Paulette gratefully told their counselor “By the grace of God, the home has been saved through the state run program.” Derek & Paulette Smith

  7. Success Stories Salisbury CDC Benjamin and Amanda from Rowan County called SHFPP for help after their family business had been severely impacted by the economic downturn.  Living on credit cards, they had gotten in over their heads. With 4 small children and a house sitting on 20 acres of land they'd worked to pay off, they couldn’t imagine losing their home.   In a moment of panic, months before making the call to SHFPP, Benjamin and Amanda refinanced into a high cost adjustable rate loan.  With the help of SHFPP, they received financial counseling, help negotiating with their lender, a 30 day extension, legal review of their loan documents, and ultimately a loan modification.  Benjamin started a new career and is grateful for the more than $1,000 monthly payment reduction.  Amanda is so happy she wants to encourage everyone to call for help. 

  8. Success Stories Salisbury CDC Octavia Liles worked directly with SHFPP & AG staffOctavia, a recently laid off single mom of 5, made a desperate call to SHFPP after falling victim to a foreclosure help scam. After paying $400 to the company Octavia was confident the crisis had been averted, until she received eviction papers. With the help of SHFPP staff, Octavia’s eviction was placed on hold, the foreclosure sale rescinded, and the servicer granted her a partial claim. Octavia’s monthly payment is now below the average rental amount for a family of 6.

  9. Success Stories Prosperity Unlimited, Inc. Crystal Edwards called SHFPP 3 weeks before her scheduled foreclosure sale. Shortly after she began working with her counselor, Crystal learned that the servicer proceeded with the foreclosure. Through the persistence of the Prosperity and SHFPP staff, Crystal was able to get her eviction stopped and the foreclosure sale rescinded, allowing time for negotiation with the lender. Crystal was ultimately approved for a modification, changing her interest rate from adjustable to fixed and reducing her monthly payment by almost $125 per month. Relieved, Crystal doesn’t have to worry about a future rate adjustment and now has a payment she can manage.

  10. Success Stories Cumberland Community Action Program, Inc. Charles & Sandra Campbell called SHFPP for help with their mortgage after medical costs claimed the bulk of their household income. With no health insurance and significant medical problems, they quickly fell behind. Charles and Sandra had previously worked with their lender on a modification, which they could no longer afford. Through SHFPP, Charles and Sandra received financial counseling, an extension of time to reach resolution, and help negotiating with the lender. After several months of negotiation, the lender agreed to a 7.25% interest rate reduction, dropping their monthly payment almost $300. Thankful that this is all behind them now, Charles and Sandra credit their success entirely to SHFPP and the Cumberland Community Action Program, Inc.

  11. Success Stories • Please visit the Real People, Real Stories, Real Results section on www.fightncforeclosure.org website for more success stories. • Bankruptcy is not an option for everyone, but can help some homeowners prevent foreclosure. • Out of the 2200 foreclosures prevented through the SHFPP, about 300 files had notes regarding a discussion on bankruptcy.

  12. Office of the Commissioner of Banks: (919)733-3016 or (888)384-3811 • Please contact Tami Hinton, if you have comments or questions: • Email: thinton@nccob.gov or (919)733-1133 • To file a complaint visit our website at www.ncforeclosurehelp.org • or www.nccob.gov • To seek additional information on how to fight NC foreclosures visit www.fightncfoeclosure.org or (866)234-4857

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