Twin Cities Habitat for Humanity

As more and more homeowners in our neighborhoods face foreclosure, it has become apparent that the current foreclosure crises has affected us all; be it through delinquent payments, rising property taxes, or vacant buildings on our streets. The foreclosure process itself remains very confusing, and there are many questions homeowners have regarding their rights when facing foreclosure.

Foreclosure is the time sensitive process lenders use to repossess a home. A property can be foreclosed if the homeowner is behind on their mortgage payments or their homeowner's association dues. Notification of a foreclosure is published and a sheriff sale is scheduled. Many homeowners facing foreclosure are not aware that they can continue to live in the property after the sheriff sale has occurred during a six month redemption period. To confirm the exact date you need to be out of the property, contact the foreclosing attorney.

Prior to the sheriff sale, many homeowners still have options. It is critical to immediately contact your lender. There may be programs available that can help youa bring your account current. Contact your mortgage company's loss mitigation department. This department works with homeowners to determine if there are any options to prevent foreclosure and if not, discuss other options.

It is equally important that you save money. Having money saved opens up your available options. All lenders require a down payment to work something out. Most importantly, don't agree to something you cannot afford. Lenders will often ask you to agree to a payment plan that will bring the account current quickly, but will not be realistically affordable.

Homeowners residing in the City of Minneapolis are eligible for foreclosure prevention services through Twin Cities Habitat for Humanity. The Mortgage Foreclosure Prevention Program offers intensive in-person counseling, phone counseling and referrals, and negotiation with lenders. The program works with homeowners who are behind on their mortgage payments, property taxes, or homeowner's association dues. The program also works with homeowners who may be at risk of falling behind on payments in the future.

Insight News
March 17, 2008