You Face Challenges.
You face challenges. Most of us do, but not like this. You have a mortgage. You have concerns about your mortgage. Unfortunately, so does your mortgage servicer. The servicer has a plan for resolution. Do you? Can you do better?
You Don’t Have Time.
You don’t have enough time. And, if/when you do, it’s never the right time. It takes time to investigate, learn and compare the advantages and disadvantages of the what the servicer may offer. You can’t multiply yourself to get it all done. Or, can you?
You Have Options
The mortgage servicer has options. Maybe you’ve never talked to them. Maybe they have presented options to you. How can you be sure which one is right, or that you are aware of all the options available? What are the advantages and disadvantages?
Learn Your Options
You can learn all of your options, including federal and state programs. A comprehensive, personalized review of your situation by an experienced, HUD-Certified advisor gets you the knowledge you need to make informed choices.
HUD Certified Agency
You can take advantage of Alliance’s HUD-Certified Agency official designation. It will provide you with a recognized authority to interface with mortgage servicers to assure your best interests are represented.
You can leverage the expertise and competence of our HUD-Certified Advisors. Each has 10+ years experience, and has guided hundreds, if not thousands, of homeowners through the tough terrain of resolving mortgage issues.
After losing my job over a year ago, I felt defeated at times. I felt embarrassed for the situation. Katie made me feel comfortable, and assured me that there was nothing to be embarrassed about: “life happens”. After that, I wasn’t embarrassed. Always kind and on top of her game. She really knows her stuff and cares about her clients. – Aissa S. Charlotte, NC
Never a Fee.
$0.00. You don’t pay one red cent. As a HUD-Certified Agency, we receive government funding and grants to provide these services to you at no cost.
Get Better Outcomes.
Your mortgage modification is twice as likely to succeed with us. Shown in a series of foreclosure prevention studies, submitted to the US Congress, HUD-Certified agencies be twice as likely to get a mortgage loan modification.
Save More Money.
Your monthly savings will likely be $175 greater than without a HUD-Certified Agency. Those same studies showed the average savings homeowners gained was significantly more through HUD-Certified Agencies. Wouldn’t you like to keep more $$$ every month?
We thank you so much for all of your hard work! Words can’t explain how much your kindness means to us during this difficult time. May God continue to bless you as you strive to bless others! – Cheryl T. Charlotte, NC
Get In Touch.
All of our work is confidential. You can get a little or a lot of information. We never contact third parties without your written permission. Use the form below to let us know.
Don’t Want to Wait?
You can confidentially call us.
Monday – Friday 8:30am-5:30pm or leave a message anytime.
Frequently Asked Questions
Foreclosure Prevention Frequently Asked Questions
- Is there a fee for Foreclosure Counseling?
- What options exist for homeowners at risk of foreclosure?
- How long does the housing counseling process take?
- What documents are needed at initial housing counseling session?
- When foreclosure counseling has started, should a homeowner to talk with their lender?
- What is a short-sale?
- What is deed-in-lieu of foreclosure?
- What are foreclosure fees?
1. Is there a fee for Foreclosure Counseling?
No, we do not charge a fee for foreclosure counseling. In fact, if anyone wants to charge a fee for foreclosure assistance, it is against the laws of almost any state. As a non-profit housing counseling agency, certified by the U.S. Department of Housing and Urban Development (HUD), we provide free housing counseling to those who are at risk of foreclosure.
2. What options exist for homeowners at risk of foreclosure?
Options are determined on a case-by-case basis, and vary with the type of loan, payment status, lender and the homeowner’s financial situation. Homeowners having difficulty meeting their mortgage payments are encouraged to call our HUD approved housing counseling agency at (866) 303-3328. A certified housing counselor will identify all possible solutions and provide follow-up and support to the homeowner.
3. How long does the housing counseling process take?
The length of the initial counseling session averages 45 minutes to 1.5 hours. While it is getting quicker, it wil take a lender several weeks, or perhaps even months, to work out loan modifications. Our housing counselors will guide you through the process.
4. What documents are needed at initial housing counseling session?
In order to assist each homeowner, we need to have authorization forms, loan documents, a detailed budget, hardship letter, two most recent months of bank statements and pay stubs. These items must be available in order to complete a full initial counseling session, and to submit the paperwork to a lender for consideration of a loan mod or other arrangement.
5. When foreclosure counseling has started, should a homeowner talk with their lender?
Yes, borrower should communicate with their lender when facing financial hardship. During the counseling process, some lenders will contact the homeowner to verify the information submitted through the housing counselor. Loan modifications, or workout solutions, are completed between the lender and borrower. The housing counselor guides you through the process and assists in making knowledgeable, well-informed decisions to accept, or decline, any lender approved loan modifications.
6. What is a short sale?
A short sale is the lender accepting less than the full balance of the mortgage to sell the home. Lenders generally require the home to be on the market for a minimum of 90 days, trying to obtain fair market value, before a short sale offer is accepted. However, some will disclose the minimum acceptable price to accelerate the sale.
7. What is deed-in-lieu of foreclosure?
“Deed in lieu of foreclosure” is an agreement by the borrower to return control of the property to the lender . If the lender agrees to forgive the loan, the borrower agrees to give back the deed to the property, and vacate it.
8. What are the fees associated with foreclosure?
Once the foreclosure process starts, legal and other fees are typically added to the loan balance. These fees may include court filing fees, process server fees, lawyer fees, auction fees, inspection fees and, if applicable, eviction fees.
Common Foreclosure Prevention Options
Many options are listed below, but new programs, including federal, state and private programs are being introduced frequently. It’s best contact one of our HUD certified counselors to see what your options are, by using the form at the right or calling us today! The options fall under two general categories, retaining ownership and relinquishing ownership.
NC Foreclosure Prevention Retain Ownership Options
Reduce or suspend monthly payments for a period then resume regular payments plus the of deferred amount on a schedule.
Requirements: Must be able to prove hardship circumstances, have a reasonable positive budget.
The lender may reduce the interest rate, monthly payment, extend the term of the loan, or even reduce the principal balance, individually or in any combination.
Requirements: Must have a positive budget, steady employment, and a good reason must exist for modification.
Obtain a new mortgage through conventional or special programs that are available.
Requirements: Terms vary widely, but credit performance must be good, with possible exception of late mortgage payments due to rate increases.
Look at our refinance calculators here or here , check our Refinance Mortgage publication, and check our debt counseling offer.
Requirements: Must be 62 years old or older, substantial equity in home, usually 50% or more of value. No credit check.
Obtain a reverse mortgage to replace the existing one.
See more reverse mortgage information.
Foreclosure Prevention Funds:
A charitable or government agency may be able to provide you with an interest free, deferred loan to catch up your payments, such as the N. C. Foreclosure Prevention Fund.
Requirements: Meet hardship requirements, demonstrate ability to resume mortgage payment after assistance ends, and agree to on-going credit counseling.
You may be able to obtain a loan from HUD (FHA loans only) to bring your loan current. You must be a minimum of 4 months behind.
Requirements: Must have an FHA Loan, Must have FHA mortgage insurance, must be able to afford current mortgage + FHA loan terms, must have a positive budget.
Spreading the defaulted payments out over a series of months, usually not more than six (6).
Requirements: Must have at least one payment, must have proof of income, must have a positive budget, must have the ability to pay current mortgage payment plus a portion of defaulted payment.
NC Foreclosure Prevention Relinquish Ownership Options
Allows homeowner to remain in their home, gives homeowner up to 2 years to improve their Financial situation, retain majority of their equity.
Requirements: Must have at least $20,000 in equity, property must be in good condition, must have a credit score of 500 or better, must have proof of steady income, must be willing to attend credit counseling and work closely with a credit counselor during the rental period to improve your credit payment performance.
Sell your property at a price equal to or above the amount owed and retain any resulting equity in your home prior to foreclosure.
Requirements: Must be in the early stages of foreclosure.
A Short Sale is the sale of the property for less than (or short) the amount necessary to pay off the loan in full.
Requirements: Must be able to document reason for short sale, declining property values in the neighborhood, cannot aford property, need to relocate and must sell the home, must be able to vacate home immediately upon sale or prior to closing, understand that the lender may seek a deciency judgement.
Voluntarily “Give Back” your home to the lender. This will not save your home but it will allow you to obtain another home in the future.
Requirements: Must be willing to move quickly & to forfeit any equity.
Cash for Keys:
Sometimes in cases of extreme hardship Lenders are willing to provide a small amount of cash in exchange for possession.
Legal proceeding by Lender to obtain title and possession of real property, typically as a last resort because it is very costly for the Lender.
Requirements: Do nothing, but you will suffer the long term effects on your credit file and the resulting higher cost of credit in the future.