Forclosure Prevention Workships are 2-3 hour classes held twice a month that will provide an overview of all options related to delinquency and loss mitigation and emphasizes how delinquent borrowers can prevent the loss of their home by receiving housing counseling and taking action. The class covers what to do when mortgage payments become difficult, how to assess current finance alternatives to delinquent borrowers and how to avoid becoming a victim of predatory lenders and home equity fraud. The instructor will discuss methods of bringing a loan current using several loss mitigation tools provided by HUD and the secondary market, such as reducing the monthly payment, negotiating a repayment plan, establishing a temporary deferment, modifing loan terms or refinancing before an interest rate reset.

NHS OC housing counselors will meet face-to-face for 1-2 hours with delinquent borrowers to find the best solution to remedy the default, including refinancing, loss mitigation or loan workouts, such as repayment and forbearance plans. The housing counselor will review and assess homeowner's financial situation to develop an action plan and budget.

The housing counselor will provide hands-on assistance in these key areas:

• Develop an action plan and estimate what the borrower can afford to pay for their housing costs.
• Engage in budget verification during which the housing counselor reviews written material provided by the client to establish true debt obligations.
• Attempt to contact the loan servicer or lender.
• Negotiate a repayment and forbearance plan on behalf of the borrower.
• Draft and submit to the servicer a hardship letter that describes the situation of the borrowers and their reason for delinquency.
• Complete and submit forms required by the servicer to move forward with a workout plan, loan modification or other available program.
• Provide the borrower with information on refinancing options through partner banks.
• Refer borrower to a network of real estate agents to facilitate a short-sale if all other options have been exhausted.
• Schedule client for a subsequent counseling session within one month of the intital services provided.
• Update file and entering information into tracking system.
• Upon assessment if legal aid is needed client may be referred to Legal Aid Society of Orange County or Public Law Center

  For more information please contact:

  David Reyna
  HomeOwnership Center Coordinator
  714-490-1250
  DavidR@nhsoc.org

  Clemente Mojica
  Homeownership Center Director
  714-490-1250
  ClementeM@nhsoc.org

• Foreclosure Prevention Enrollment